Black cab taxi trader reveals how insurance premium hikes are affecting the market
The UK’s black cab trade is feeling the squeeze as insurance costs soar, with drivers facing unprecedented hikes in premiums. A cab fleet expert and trader, speaking in TAXI Newspaper, highlighted the significant impact this is having on cab sales and drivers alike.
The trader shared the story of a driver who had recently upgraded to a new TXE electric taxi after his TX4 reached the end of its lifespan. Initially, the driver simply transferred his old insurance policy, paying a small fee to accommodate the new vehicle.
However, when the time came for renewal, his premium had rocketed from £1,700 to £2,900, despite no changes to his driving history, location, or personal circumstances.
The expert pointed out that this case is not an isolated one, with many drivers experiencing similar sharp increases. This issue is compounded by the Government’s recent revelation that car insurance premiums in the UK have risen by an average of 25%, compared to much lower increases in countries like France (3%) and other European nations (around 6%).
The Government has responded by announcing a task force to investigate the reasons behind these hikes.
This sharp rise in insurance premiums is becoming a major issue for drivers, leaving many questioning the long-term viability of operating in the current climate. With further investigations now underway, drivers across the country will be eagerly awaiting answers.
The black cab fleet expert and trader said: “Cab sales are always impacted by external factors and at the moment the cost of insurance is definitely being felt.
“I sold a TXE recently to a driver, whose old TX4 had come to the end of its life. He simply transferred his new cab onto his old policy, paid an uplift fee and all was well until it came to renewal time, His old policy had cost him £1,700. They now wanted £2,900, with absolutely nothing changing, no accidents, no points, no moving house, and he was in his 50s, so no age related issues, just a massive hike.
“So, it’s no surprise to me when I see the Government questioning the average 25 per cent increase on car premiums in this country.“
