How The Cost of Public Hire Insurance is Calculated

If drive a taxi for a living then you’ll know that insurance doesn’t come cheap.

If your current policy is nearing its end or you’re a new driver who needs to obtain cover then before you start looking for public hire insurance quotes, it’s a good idea to know what factors impact cost so you can hopefully save some money.

The value of your vehicle

One of the biggest things that affects the cost of public hire insurance is the value of your vehicle. If you were to be involved in a collision where your cab was seriously damaged or written off then it would need to be repaired/replaced. Insurance providers always take this into account so the more your taxi is worth, the more you can expect to pay for cover.

The level of cover you get

Another factor that affects cost is the level of cover you get. Just as with regular motor insurance, with public hire insurance you can choose between third party only; third party, fire and theft; and fully comprehensive cover. Third party only is considerably cheaper compared to a fully comprehensive policy since it only provides cover for other road users’ vehicles in the case of a collision where you’re at fault.

The number of miles you drive annually

If you work as a taxi driver part time then it’s certainly worth informing insurance providers of this since you could get a discount on your policy. This is because the more miles you drive each day, the higher the risk of being involved in an incident where you’d need to make a claim on your policy.

How secure your vehicle is

How secure your vehicle is will be another big factor that insurance providers will take into account. Any steps you can take to make your cab more secure will help to keep costs down. Another thing that plays into this is where your vehicle is parked when you’re not using it. A garage or driveway are much better options than parking on the street, where the risk of vandalism and theft go up considerably.

Your no claims bonus

The length of your no claims bonus (NCB) is a big factor when it comes to how much you’ll pay for pubic hire insurance.

If you’ve built up your NCB to 5 years or more then this should give you a significant reduction in what you pay with most insurance providers.