Tips for Getting Cheap Taxi Insurance

Taxi operators face many risks daily, including passenger injuries and other accidents, like accidental damage, fire, theft, vandalism, third party liability, damage to property and personal injury. Therefore, it is important to have adequate insurance coverage for yourself, your passengers, and your business.

Furthermore, a policy that will provide coverage when you are unable to work, perhaps because your vehicle requires repairs or you are unwell is good. The relevant state authorities advise every vehicle used for hire to have appropriate insurance.

Whether you are working on a full-time basis or a part-time basis, a taxi hire cover is recommended. If you are keen at protecting the very asset that keeps your business running, the right insurance is important. Tips for getting cheap taxi insurance include:

· Consider your car type

If you are interested in cheap premiums, you can choose a vehicle in a lower insurance group. The car insurance groups often vary among different states or countries, with some states having up to 50 groups. Vehicles that fall in the highest group often attract expensive insurance premiums, while vehicles in the lowest group attract the least insurance premiums.

Cars are designated into different groups based on various factors, including repairs, price of spare parts, safety features, and vehicle value. Vehicles in the highest category are often high-performance models. Nevertheless, when choosing a vehicle you cannot base your decision sorely on the insurance category because you also need to consider the fuel consumption levels, depending on the nature of business.

· Drive safely

The importance of driving safely cannot be over emphasized. As a taxi operator it is important to adhere to the rules, such as driving within the speed limits, to avoid convictions. Generally, convictions attract higher premiums. In fact, it is not uncommon for insurance providers to deny taxi insurance to drivers who have been involved in an offense that has no bearing on a person's driving. Insurance providers argue persons who have committed a criminal offense, however minor, are likely to get involved in a car accident.

· Build a clean record

It is very easy to reduce your premiums by building a clean record. This can be achieved by driving responsibly and safely, and thereby building-up a no claims discount over the years. Many insurance carriers are ready to offer drivers attractive discounts of between 20% and 30% to those who stay claim-free for over a year. You could also benefit from up to 75% discount for staying claim-free for 5 consecutive years.

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