How Taxi Insurance Is So Costly Compared to Average Motorist?

Being a taxi driver, you come across several issues to deal with them ranging from endless traffic jams to unruly passengers. But compared to a conventional motor insurance policy, you will have to pay more for your taxi insurance. The difference in price may not seems fair, but there are certain factors that count for making a rise in insurance premium. The most obvious factor is that you may be driving more miles than the average motorist that means the statistical risk of an accident happening gets increased. And this will be reflected in the price you’ll pay.


Taxi drivers often claim that their insurance is more expensive than a conventional policy. They want to know how they can get Cheap Taxi Insurance with a reduced insurance premium.

Drivers can compare policies from several different schemes to choose the one that is best-suited to their particular needs.

Why Taxi Insurance is So Costly?

Private hire taxi insurance is more expensive compared conventional cover as taxi drivers complete more miles than other motorists, and often drive in congested zones. Moreover, taxi drivers tend to make these journeys in vehicles that are large enough to fit a greater number of passengers.

That means taxis are bigger than conventional cars, therefore these vehicles often fall into a higher car insurance group.

The taxi insurance groups in which a car has a big impact on cost, the car in the highest category will be in the most expensive group. That’s why the taxi driver should pay a premium for their cover compared to standard motorists.

Types of taxi insurance policy:

There are three main types of policies when we talk about private hire taxi insurance, the first is- policy only, the second is- named driver, and the third is – any driver over set age.

 Policy only: It is the cheapest form of cover than the other two. It is the most basic type of cover. Critically, adding more names to policy means the more expensive it gets.

Named driver: This cover is the middle type of cover involving a taxi driver purchasing taxi insurance that is particularly just for the one with mentioned name and not for anyone else.

Any driver Policy:  This is the most expensive type of policy that means any motorist is covered to drive your taxi. As more names can just be added, so does the price of the policy get increased.


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