Taxi driver insurance quote totals over £7,000 prompting industry reps to urge cabbies to shop around
Taxi drivers are facing a growing financial burden due to the escalating costs of insurance, with one cabbie quoted an astronomical £7,770 for a new policy, says driver representatives.
According to Suzanne Sullivan, Airport Representative at the Licensed Taxi Drivers’ Association (LTDA), one driver revealed that his insurance costs have doubled. Meanwhile, a married couple who both drive taxis made the difficult decision to sell one of their vehicles to share expenses. They opted for a LEVC TX, expecting that the insurance for the electric model would be higher. To their shock, when they sought insurance quotes, they were in for a surprise.
Initially, they were quoted £3,000 for their old TX4, unaware that the insurance company did not yet know they had switched to the new vehicle. Once they provided the new registration for their LEVC TX, the insurance quote skyrocketed to an astonishing £7,770. This was despite both having full no-claims bonuses and only minor points on their licences.
Faced with these unexpected costs, the couple decided to look for alternative insurance options. They turned to an insurance comparison site and managed to secure a policy for £2,200. This substantial saving illustrates the importance of shopping around for the best insurance deals. Sullivan stresses the need for drivers to thoroughly check that the insurance covers their specific needs as taxi drivers.
This situation is not unique to this couple. Across the industry, many drivers are experiencing increases in their insurance premiums. Factors such as the rising cost of living, higher vehicle parts costs, and higher labour costs are all contributing to the higher costs.
As more drivers switch to electric vehicles to meet new environmental standards, they are often met with higher insurance premiums. Electric vehicles, while cheaper to run long-term, come with their own set of challenges, due to a higher initial purchase prices.
Sullivan said in TAXI Newspaper: “As we all know, the cost of everything has gone through the roof these past few years, and that goes for the expenses related to driving our taxis.
“I have had so many calls from drivers recently, complaining about the substantial increase in the cost of insuring a taxi. One driver said the premium for his policy had doubled. I also had a call on Friday from a married couple, both taxi drivers. One had sold their vehicle so they could cut expenses by sharing their cab. They now drive a LEVC TX between them.
“The cab they sold was a TX4 and they had expected to pay more on insurance for the electric model. They rang around to all the usual taxi insurance companies, only to find the prices were astronomical. Their first quote was on the TX4, as the insurance company wasn’t aware they had sold it. That was £3,000. When they gave the new vehicle registration, they nearly fell off their chairs. Both have full no claims bonus, three points each on their licence, and the quote was... £7,770! And to think they were trying to reduce their expenses.
“They decided to go down a different route and tried on GoCompare Taxi. They found an insurance company that would cover them for £2,200. What a difference. I asked them to make 100% sure they know it’s a taxi and they said they checked and have it in writing.
“I don’t have any more details, but, from what I can tell, there are other options and I recommend exploring every avenue when renewing your insurance. If expenses continue to rise at the current rate of knots, it seems our life as cabbies will only get tougher.”
