4 Factors That Affect Taxi Insurance Premium

A taxi insurance is a specially designed policy for both public and private hire vehicles. As the taxis are used as passenger vehicles, the insurance requirements for taxis are different than the private car insurance. There is need for enhanced protection for the passengers if an accident happens. Sometimes, taxi companies also provide coverage to the passengers if they leave a valuable in the taxi.

However, the cost of the taxi insurance policy is much higher than the cost of the private car insurance. The taxi drivers have to pay exuberant amounts of premium to get their cabs insured. It is specifically true if the taxi has a comprehensive insurance policy.

If you are thinking about what makes the taxi insurance go up, here are the four factors that affect taxi insurance.

1-      Type of Vehicle

One of the most important thing for an insurance company to calculate your taxi insurance is to know the type and model of the car you drive. If you drive a luxury car, your insurance will be much higher than the other makes and models. If you drive a regular Toyota, Mitsubishi or Honda, your insurance will be much lower.

2-      Age of the Driver

Whether you are an insurance company or an individual person, the age of the driver affects the insurance premium. A person below the age of 22 or a person above the age of 65 is considered as a high-risk driver. The insurance companies are reluctant to insure drivers that are high-risk as there can be more claims due to the risky driving.

So, if the taxi driver are within 25-65 years of age, the taxi insurance premium will be lower than it is for other age groups.

3-      Area of Operation

Some taxi drivers operate in a specific area within the city while others cover the large areas or complete city. Depending upon the scope of your service, your taxi insurance premium will vary. You can compare taxi insurance for different areas to know which one suits you the most.

4-      Mileage

The mileage is directly related to the area of operation. If you cover broad areas, your mileage will be higher and if you only drive in a small area, its mileage will be lower. So, always enter the right mileage when you are calculating insurance for your taxi.