Many people think that taxi fares are expensive, but I am willing to bet that the majority of them have never been self-employed and had to pay all the high overheads that a taxi driver has to face; and one of the major expenses is insurance. Fortunately, with the growth of the Internet it has been easier over the last few years to find more reasonable quotations for taxi insurance as more and more insurance companies have brought their products online. Simple quotations for just one driver in one cab can often be obtained automatically online, and if the quote is satisfactory it can be paid for on the spot by credit card and cover can usually begin immediately. Where a driver has more than one vehicle, or several different drivers share a vehicle it is sometimes necessary for a representative of the insurance company to take a quick look at the proposal form and calculate the premium based upon his or her experience, taking into consideration the area in which the applicant will be working, and the number of vehicles and drivers involved. This means that for the more complex cases it is necessary for the applicant to communicate with the insurers by telephone.

Taxi companies are strictly regulated by local authorities and the regulations that they enforce also cover insurance, and therefore it is essential that any taxi operator is completely satisfied that the level of cover offered by an insurance company is sufficient to satisfy the local regulations before making any commitment.

If you run at more than a couple of taxis it may be worth considering a fleet policy instead of individual ones, and most insurance companies are quite flexible about the mix of vehicles that you may operate such as black cabs, minibuses or small coaches. It is debatable whether it is better to opt for named drivers or any driver; generally speaking if you have older drivers with clean records then named drivers can prove to be less expensive, and conversely if you have a fair proportion of younger and more experienced drivers it may be better to have your fleet insured for any drivers. If you have a number of female drivers many insurance companies consider them to be a better risk than males, and it may be worth your while discussing this point with your insurance company or broker.