BROKERING CHANGE: Taxi insurance specialists Konsileo share insight on the market and reducing costs
Navigating the complexities of taxi insurance has always been a challenge, but recent developments have shifted the terrain significantly for cabbies. TaxiPoint sat down with Chris O’Sullivan and Richard Collins from Konsileo, a commercial insurance broker, to discuss the evolving insurance market, challenges faced by operators, and how taxi drivers can better manage their costs.
In this exclusive interview, the team delves into the effects of the pandemic, the rise of electric vehicles, and practical steps cabbies can take to reduce premiums in a challenging market.
For those that haven’t come across Konsileo before, can you please give us a brief introduction on who you are and what you offer in the taxi industry?
Konsileo are a Commercial Insurance Broker, who started trading in 2018. Konsileo give their employees the freedom to place business with the right insurer for the client. This means we don’t just insure clients with the market that pays the most commission, we cover you with the right insurer at the best price we can offer.
We can arrange cover for single taxis, multi-vehicle policies and fleets, as well as liability cover for school contract work.
How has the taxi insurance market changed since the pandemic?
Insurers had testing times in how best to support their policyholders during the pandemic, with varying amounts of success. As with the rest of the business world, these were unchartered territories, so things could change on a daily basis. Since the pandemic, things have settled down, but we are now in a hard market, which means there are fewer insurers quoting for taxis, which pushes up premiums.
The cost of repairs also increased due to supply chain issues, with the Russia-Ukraine war adding to this. According to recent data, a staggering 40% of vehicle repairs are somehow affected by delays in obtaining necessary parts (the average vehicle is composed of around 30,000 parts sourced from around 200 different countries). This means there are extended repair times, with policyholders left without their vehicles for longer. Supply and demand of credit hire vehicles, with increased hire periods has led to a 30% increase in hire costs.
With these changes in mind, how can cabbies proactively work to reduce the costs of their forthcoming policy?
Reporting incidents to insurers within the first 24 hours means that your insurer can take control of the claim quickly and keep additional costs to a minimum. This will mean insurers are paying out less for claims, which will drive the cost of premiums down over time.
To reduce your premium, you could opt for a higher policy excess. We can then arrange an excess protection policy, which means you should be able to reclaim your excess. We can advise you on this when we quote for you.
Can you elaborate on the types of coverage gaps that taxi vehicle operators might not realise they have?
During the pandemic most insurers allowed the policy holder to use their vehicle for other aspects of hire and reward whether it was food or parcel delivery but since it has settled down, most insurers only cover for the carriage of passengers for hire and reward with some allowing the additional cover for an additional cost. Again, we will be able to discuss your needs and place you with the best insurer rather than just the cheapest premium.
How is the introduction of electric and hybrid vehicles impacting taxi insurance policies?
Electric Vehicles are becoming increasingly popular and are more expensive to repair. This is because of their onboard technology which brings with it the specialist repair engineers required to work on them.
Most new vehicles are now fitted with Advanced Driving Assistance Technology (ADAS) to help with parking, lane departure warnings and pedestrian protection. These all help drivers be safer on the road. However, the increased technology is often costly to repair or replace. For instance, a plastic dashboard is far cheaper than a fully integrated dashboard with a large monitor, and bumpers now incorporate advanced technology and cameras that may require replacement after an accident.
