If you drive a taxi for a living then you’re obligated to get insurance. One of the first things that new private hire drivers want to know is how much does private hire insurance cost.
When coming up with the price for a policy, insurance providers will take a few key factors into account. The main things that affect the cost of private hire insurance are:-
The value of your vehicle
The value of your vehicle will of course affect how much your cover costs. This is why generally private hire drivers will chose a car that’s reliable yet modest. Being on the road for so many hours each day does increase the likelihood of being involved in collisions, no matter how careful of a driver you might be. Therefore a luxury vehicle generally isn’t a practical choice.
Where your car is parked
If you have a locked garage to park your vehicle in when you’re not using it then this is ideal and will help to lower the cost of your insurance significantly. Failing this a driveway is also a decent option. If you have to park your car on the street then this won’t stop you getting cover at an affordable cost but you will pay more than if you had a garage or driveway.
Where you live
The area you live is another thing that will impact cost. As you would expect, if you live in an area with a significant crime rate then you’ll pay more for your cover.
The level of cover you take out
The higher the level of cover you take out the more the policy will cost. Third party only policies are significantly cheaper than fully comprehensive policies for example. Additional cover options such as breakdown assistance and windscreen repair also add to the cost.
Are there any ways to save money?
Although there are certain things you cannot chance, such as where you car is parked, there are steps you can take to lower the cost of a private hire policy. These are –
- Pay annually – If you can afford to pay for your cover annually rather than monthly then this will certainly help to lower the overall cost of the policy.
- Get a lot of quotes - Another very obvious way to save money on private hire insurance is by getting quotes from many different providers. Luckily this is now very easy to do thanks to the internet.