Black Cab Insurance

 Ordinances to regulate the vehicles for hire have been used in London since 1654. The first hackney-carriage license was issued in 1662, and applied to a horse-drawn carriage. Over the centuries, the horse-drawn taxis have been replaced by world renowned, modernised vehicles known as black cabs. Now, over three and a half centuries later, there are around 21,000 black cabs in London, licensed by the Public Carriage Office.

 Over the centuries, the hire and reward taxi services have become even more closely regulated. Currently, a black cab taxi driver must make a huge investment of time and money to earn the right to provide a public hire service. One part of that huge investment is the black cab taxi insurance that is required. After paying a small fortune for a vehicle and licensing, the last thing a black cab owner wants to do is pay another small fortune for taxi insurance. Therefore, it’s a good idea to learn some insurance tips that may help you lower your premiums.


There are numerous ways you can lower your black cab insurance premiums. One way is to ensure you have the right type and amount of insurance you may require. In order to ascertain what is the right type and amount needed, you’ll have to carry out a risk management assessment of your entire business. You will need to make sure you have adequate taxi business insurance as well as adequate black cab insurance cover. You’ll most likely need at least some Public Liability and Loss of Income cover. You’ll also want to be sure you have adequate liability insurance in case any claims are made against your business. At the same time, you should make sure you have reduced or eliminated as many of the risks as you possibly can. For instance, can you add more security to lessen the risk of theft? Or perhaps you can add in fire safety equipment to lessen the risk of lost due to fire. Adding security cameras to the vehicles may also help lower your premiums.

 Moreover, check to see if there’s any services added onto your policy that you most likely will never use. Also check to see if the same risk is being covered by more than one insurance policy. If there is, then ask your insurer if excluding these extra services will lower your premiums.

 Another way is to ensure that your insurer knows exactly what type of taxi service you provide. Some types of taxi businesses are considered to be less risky than others. For instance, you may get a reduced premium based on the type of clientele you have contracts for. Or you may get lower premiums based on low mileage, or the location you ply your trade in. You may also get a reduced premium based on the amount of experience, gender, and ages of your named drivers.

 Yet another way is to limit the number of drivers on the policy. Instead of asking for “Any Driver” policies, go for “Named Drivers Only” policies. You can always have other drivers added on temporarily if you need to. Also try to limit the age of your drivers to people over 25 years of age.

 Building a No Claims Bonus with annual policies also helps to reduce your premiums. Although the monthly and 3-month policies are easier on the pocket, they usually don’t build up a No Claims Bonus rating. A No Claims Bonus can get you up to a 60% discount if you don’t file any claims for five years.
 Choosing a different make and model of vehicle may also reduce the premiums. Using a smaller taxi with a smaller engine may save you money in several other areas besides reducing your black cab insurance premiums. With the recent push to reduce air pollution in the UK, you may not have much choice in the matter in the future.

Some people may suggest increasing your voluntary excess. This may save you around 10%-15% on your premiums. However, this can cost you more in the long run, if you do have to file a claim. Considering all the risks you already face on a daily basis, it is more likely than not that you’ll need to file at least one claim within the year.

 One of the best ways of lowering your insurance premiums is to simply do some comparison shopping. You can do this online, via the phone, or by visiting various insurance brokers. The quickest and least expensive way is to utilise the internet. There are numerous reputable insurance brokers and specialists who offer their services via web sites.

 Moreover, there are numerous reputable insurance comparison sites available online. In most cases, all you have to do is fill out a brief form to provide accurate information to the various insurers. Once you submit the forms, the interested insurers will contact you to present their offers of cover. You’ll want to visit comparison sites with at least six specialist taxi insurers on their books so you can obtain a wide selection of offers.

 Once you get several quotes, compare the policies to see which ones best fit your requirements. Remember that the lowest price doesn’t necessarily mean it’s the best offer. Look for any hidden fees and charges, as well as compare the companies’ customer services. Be sure you ask the insurers to provide quotes for single cover and combined cover. Sometimes buying several policies from the same insurance company may reduce your premiums.

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