From accident repair delays to dwindling taxi underwriters; why taxi insurance is impacting fleets and cabbies
- Perry Richardson
- 1 hour ago
- 2 min read
Fleet insurance premiums are emerging as a key threat to the sustainability of London’s black cab trade, with operators warning that spiralling costs and industry inefficiencies are placing the model at risk.
Taxi drivers and an industry fleet owner discussed the problems surrounding taxi insurance on the latest Wizann podcast. Paul Byron, HP Taxis fleet owner, suggested costs have reached unsustainable levels, with first-year insurance premiums for new drivers often starting at £3,000 to £5,000. For younger drivers, cover may not even be available at all. Insurers are increasingly refusing to take on drivers under 25, limiting rental options for young drivers at a time when the trade already faces recruitment issues.
Fleet operators are also being forced into restrictive deals due to the lack of competition among underwriters. Byron explained that unlike the private vehicle market, where policyholders can switch providers easily, taxi insurance operates in a more closed system. The fleet owner highlighted that a small pool of underwriters means operators are stuck circulating between the same few providers, with little power to negotiate on cost or cover.
One of the biggest complaints around taxi insurance centres on accident-related downtime. According to fleet owner Byron, when a cab is taken off the road following a non-fault accident, insurers have often been too slow to settle claims, increasing time off-road.
In practice, many rental firms are forced to rely on 3rd party hire firms or keep spare vehicles idle just in case when their rental taxi is taken of the road. This can add to the cost of business and future premiums.
With rising premiums, inflated repair times and limited driver eligibility, the economics of fleet ownership is said to be becoming more difficult.
