Want to get the best deal on your taxi driver insurance? It’s easy. Just fill out one form and we connect you with three insurance agents who’ll compete for your business. It’s then up to you to pick the one with the best policy. So get started now!
Why is insurance so expensive for taxi drivers?
According to the National Transportation Safety Board, taxi drivers are more at risk to get into an accident this year than almost any other motorist on the road. In addition to that, driving a taxi is ranked among the ten jobs where you’re most likely to be assaulted. It’s no wonder then that taxi drivers face steep premiums on their insurance. Luckily, there are several ways to reduce the amount you pay your insurance company. First let’s look at how insurance rates are calculated for taxi drivers.
What affects the insurance premium of a taxi driver
When you speak to an insurance agent, he’ll ask you several questions about your business. The way you answer these questions will contribute to how much your policy is priced. Some of the questions he’ll ask you include:
- Where do you live?
- How many accidents have you been in in the past year?
- Are you 25 or older?
- Have you participated in safety training programs?
- Do you work in a rural or urban setting?
- Are you a traditional taxi driver or do you do executive driver services as well?
If you’re an experienced driver with few accidents who works out in the country, you’re more likely to get a cheaper premium. That’s because you are statistically less likely to get into an accident and cost an insurance company money. On the other hand, if you’re a young driver in the city, you can expect to pay a little more.
How to save on taxi driver insurance
There are many factors that affect your premium that are outside of your control. That’s not to say there’s nothing you can do to save on insurance. Below we’ve outlined the five things you can do to save on your taxi driver insurance.
1. Pay a higher deposit up front
When you and your insurance agent are setting your price, you’ll have the option of paying a deposit upfront. Do it. A 20% deposit at the beginning of the year will save you money in the long run.
2. Choose your deductible wisely
Your deductible is the amount you pay out-of-pocket after an accident. If you have a $1000 deductible and you get into an accident, you pay $1000 and the insurance company takes care of the rest. Taxi driver insurance policies with high deductibles cost less than policies with low deductibles. So you have to make a choice. Do you want to a little more month-to-month or do you want to take a chance and pay less with the potential of paying a lot out-of-pocket if you get into an accident?
3. Bundle your coverage
Some insurance companies allow you to bundle your commercial auto and your personal auto policies together. Some allow you to bundle these with your home or life insurance policies. The more consolidated your policies are with one insurance company, the less you’ll pay overall.
4. Maintain a good credit score
The risk you pose to an insurance company is tied into your credit score. So just by maintaining good credit, you can actually reduce the amount you have to pay your insurers.
5. Shop around
Probably the easiest way to save right now is to compare several taxi driver insurance agents at once. You hear them out on what they can offer you and then you pick the agent with the best price.