In the current economic climate many taxi drivers are looking to make savings on their out going expenses. They often search online for cheap taxi insurance deals to see if a new provider can better their renewal price they have had from their current taxi insurance brokers. There are many different factors which are taken into account by taxi insurance companies before they can generate a price. We’ll take a look at a few of these criteria’s as to how a cheap taxi insurance price is generated.

• The age of the taxi driver is major factor in the rating process of taxi insurance quotes. The older you are the cheaper the rate as underwriters can assume that you will be a more responsible driver. Also statistics prove that younger drivers especially those aged less than 25 years of age tend to be involved in more road traffic accidents than their older peers.
• The taxi licensing authority also plays a major part in the cost of you taxi insurance premium. Drivers that are licensed in large cities such as London, Birmingham and Manchester etc are perceived to be at a higher risk of being involved in a road traffic accident.
• If you previously have taxi experience and have owned taxi no claims discount then this will be reflected in cheaper taxi insurance price. Some insurers will give introductory discounts on private car no claims bonus for new drivers without any previous taxi experience.
• The number of motor claims, incidents or thefts also greatly affects the price of a taxi car insurance quote. Claims free drivers will obviously receive the cheapest taxi insurance price. Even if you were involved in a non-fault accident these still do need to be declared to the taxi insurance company as this can affect the premium. There some insurers that will not provide a quotation for drivers that have been involved in four or more incidents in the last three years even if all of these incidences were non-fault. Further more failure to disclose any material information or inaccuracies in the information given could invalidate your insurance cover and mean that part or all of your claim may not be paid. If you are in any doubt as to the ambit of the duty of disclosure or whether a piece of information ought to be disclosed, please do ask the insurance advisor.
• Penalty points and fixed convictions also affect the price of a taxi insurance policy. Driving convictions such as careless driving and driving without insurance etc can greatly increase the cost of a taxi insurance policy.

There are other factors that are taken into account when assessing the full risk of a taxi insurance policy such as the vehicle make and model, whether its garaged, marital status of the driver, number of drivers on the policy etc. As it can be seen that the cheapest taxi insurance options are if you are a mature driver with experience and with maximum no claims bonus discount on a taxi policy.

However it doesn’t mean new taxi drivers are not looked after. There are many taxi insurance companies that entice new taxi drivers with special promotional offers and introductory discounts.