Discover why LOYALTY can be a key driver to LOWER taxi fleet insurance costs over time
Rising costs for vehicle repairs and replacement hire cars have pushed up insurance premiums across the board. It’s tempting for taxi fleet owners to cut costs by switching insurers each year for a cheaper deal. But short-term savings could lead to higher costs in the long run.
Taxi fleet insurance differs from private car cover. Insurers assess multiple factors, including the fleet’s claims history over the past three years, the area of operation, and driver profiles such as age, experience, and past claims.
Loyalty is becoming increasingly important. According to Paton Insurance Fleet Account Manager, Stephen Shearer, insurance companies tend to reward long-term customers. A fleet that remains with the same insurer is more likely to receive support when claims surge in a single year. Regularly switching insurers means that any recent claims dominate the risk assessment, potentially increasing premiums.
Stephen said: “Insurance companies reward loyalty. A fleet owner might go two years without making a claim, but then have a bad year and make several claims in the third year. If they have been with the same insurance company, they will work with them and can see that it balances out, but if the owner has shopped around every year for the cheapest quote, they are going into a new policy with all those claims in their most recent history.
“An owner might save a few pounds on their renewal by switching each year, but that will be quickly swallowed up by rising costs or if they make a claim.”
Loyalty is just one of several driving forces behind stable and competitive taxi fleet insurance premiums. Staying with the same insurer and actively managing risks is often the most effective way to keep costs under control.
