people get their budgets destroyed every month by
mortgage payments or rents they can barely afford. Taxi
drivers and taxi owners, instead, get ulcers over the
outrageous cost of taxi insurance. Premiums for taxi
cover, like the National Debt, only get bigger.
You can blame the insurance companies: hating insurance
companies is a global pastime anyway. But these
companies want to cover their potential losses on
vehicles often driven by multiple drivers. On any given
day, the driver pool for one cab could include a junkie
new to recovery, someone whose wife just ran off with
postman, a cousin of a 9/11 terrorist barely one step
ahead of the UK Border Agency, and a female driver with
This gang doesn't do the kind of driving your instructor
taught you about!
Add to this the fact that taxi drivers and the folks who
own their cabs want to accept as many fares as they can.
They work on what manufacturers call "piece work." This
means that the more fares they accept and the more
death-defying transport through the city or out to the
airport they provide, the more money everybody makes -
including the insurance companies turning all that risk
into higher premiums.
Insurance rates are also boosted by the value of the cab
itself. Built with the wear-and-tear they will take in
mind, taxis are reinforced beyond the standards of
regular cars precisely because taxi manufacturers
understand that these vehicles face unusual challenges,
from routinely driving over pavements, to rolling off
exit ramps at high speeds, and - depending on what city
the taxi calls "home"-- an occasional barrage of
Then there are the internal amenities of the taxi which
add to its replacement cost: the elaborate GPS setup -
another distraction for the already distracted driver -
the privacy window in some cabs so the driver doesn't
have to hear the moans of passengers having sex in the
back seat, and those elaborate door locks to shackle in
passengers trying to do a quick runner.
As they say, pretty soon we're talking about real money.
Beyond all this, taxi owners aren't obsessed with
changing the oil or checking the brake pads and tyres on
cabs on a regular schedule. A taxi on a lift in a garage
isn't earning its keep.
So there are now three things you can count on: death,
taxes and rising taxi insurance costs. Strap yourself
in; it's bound to continue to be a bumpy - and
expensive - ride!
discuss your taxi insurance with a real live person?
Speak to Insurance Choice on 0844 55 77 926
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