Many people are looking to earn on the side right now and there are lots of good options for this, Many have turned to the chaffering industry as there is always money to be made here and it can be enjoyable work if you like to spend time behind the wheel. While this can be a good side hustle, you might find that your expenses are high as a taxi driver and this is something that you will need to prepare for. Interestingly, fast food delivery drivers and taxi drivers have the highest insurance costs with cab drivers facing an annual average premium of £1,010.
What Insurance is Needed?
It is important to know what kind of insurance you need if you start work as a taxi driver. Regular car insurance will not cover you if you have an incident while on the job, so you will need specialist cover on top of your personal car insurance. For taxi drivers, the minimum level of cover that you will need is third party taxi cover – as with regular cover, this will cover damage or injury to other vehicles, property or people. The other levels of cover are also available but taxi insurance can also protect you against specific risks, such as your regular contact with the public, the high number of miles and driving in stressful situations.
Why is it More Expensive?
So, why is taxi insurance so expensive? The main reason is that you will be driving more hours and covering more miles than an average motorist, which increases the chances of an incident occurring. On top of this, taxi drivers have to work under demanding conditions, work antisocial hours and often drive larger vehicles. This all means the nature of the work is considered high risk from an insurer’s point of view, so premiums are higher.
Public Vs Private Hire
You will also find that there is a difference between public and private hire. Private hire vehicles are booked in advance, such as an Uber or booking online, while public hire is cabs that can be hailed from the side of the street. As two very different business models, you will need either public hire or private hire insurance.
How to Reduce Expenses
Taxi insurance and other costs can be high, so what can you do to keep insurance down? First, you need to make sure that you have the right level of cover sand shop around for the best deal. In addition to this, you can increase your excess, buy an electric vehicle, have a clean driving record and pay annually upfront if you are able to.
If you are thinking about starting work as a taxi driver, you need to keep expenses in mind and ensure that you have the right insurance in place before you get started.