The taxi industry is one of the high risk trades which may get intertwined in a number of legal matters more often because of calamities, robberies or getting involved into illegal circuits by accident. The tangled webs of legal procedures take a lot of time and money as you have to hire good lawyers. In every case, the owner can be left being the one most affected, more so if it is their only source of income.
As it has been considered a high risk business, the premiums of taxi insurance are high. This doesn’t mean you aren’t able to find a cheap deal, it just means you have to work a little harder for it. It may not be the best option if you chose to go with a broker if you want to cut down on costs but remember you are investing in the safety of the business, for most, a business which a very significant amount has already been invested. It may work out cheaper to cut out the broker but if you really don’t know much about this type of insurance, this may be a cost you should definitely consider. After all, it’s their job to know everything about insurance policies, not yours. However, if you don’t use a broker make sure you do your research. Whenever there is a very huge difference in the premium in two companies, it is a good idea to read the terms and conditions which are in a fine print and generally neglected by most consumers.
Here are a few tricks to reduce the insurance premium:
• Choosing for a bigger amount to be subtracted is one way of keeping the premiums down. Under this, the policy holder pays a greater share in case of a claim. If every penny of the claim has to be paid by the insurer and with a larger deduction which is prefixed, the amount of money the company has to pay out is reduced and therefore so is the premium.
• Another way to keep the premium low is to stick with the same driver for longer periods of time and also when you keep the vehicle in good condition, you may be eligible for an occasional ‘No claim Bonus’.
• Multiple drivers for a single car or an open drive policy are incredibly expensive as far as taxi insurance is concerned. The trick is to limit the number of drivers per and use only the named ones.
• There are a few stand-alone policies like the third-party theft and fire policy which cover for damages which involve a third-party theft and fire. Some of the owners may avoid the break down and assistance policy if their vehicles are new and in good condition.
Sometimes, if the taxi is the sole source of income, so making sure you have the right taxi insurance for you is essential. Cutting costs along the way may just end up costing you more in the long run!