Table of Contents
Increase Your Voluntary Excess (With Caution)
Choose the Right Type of Taxi Insurance Cover
Secure Your Vehicle Against Theft and Damage
Understand the Impact of Your Vehicle Type
Register on the Electoral Role
Work With a Specialist Insurance Provider
Taxi insurance is a legal requirement for anyone driving passengers for hire or reward, but that doesn’t necessarily mean that it has to be expensive.
In this guide, we’ll explore a range of money-saving strategies specifically for UK taxi drivers. From driving habits, to vehicle choices and insurance solutions, these are some useful tips that could help taxi drivers reduce the cost of their taxi insurance.
1. Increase Your Voluntary Excess (With Caution)
When setting up your taxi insurance policy, the excess is the amount you’ll pay towards any claim. There are two types:
Compulsory excess — set by your insurer, this will be detailed when taking out a policy, and also in your policy schedule.
Voluntary excess — an optional amount you can choose to add.
Raising your voluntary excess can reduce your premium, as it demonstrates to insurers that you’re willing to take on more of the financial risk. However, only choose a level of excess you can afford, otherwise, a future claim could be financially challenging as the full amount of both your compulsory and voluntary excess would need to be paid. However, it is worth noting that if this is a non-fault claim, you would potentially entitled to receive your excess back. Read our complete guide to ‘What is Excess In Motor Insurance’ for more details.
2. Keep a Clean Driving Record
Insurance providers base pricing heavily on risk, and your driving history is a big part of that calculation. Points on your licence, previous claims, or motoring convictions can all lead to higher premiums.
To protect your record:
- Drive carefully and avoid speeding
- Stay alert and minimise distractions
- Make sure your vehicle is regularly and correctly maintained
Some insurers reward drivers with a strong record, so keeping your driving clean can pay off.
For practical advice on staying safe behind the wheel, check out our article on Top Taxi Driver Tips for Road Safety.
3. Choose the Right Type of Taxi Insurance Cover
Reviewing the policy type and cover levels available can prevent you being underinsured. Most taxi drivers fall under one of the following:
Public hire taxi insurance — for taxis that can pick up passengers without a booking (e.g. black cabs)
Private hire taxi insurance — for taxis that must be pre-booked (e.g. Uber, Bolt, local minicabs)
Then, select the cover level that suits your business:
Third party only — this covers damage and injury to third parties.
Third party, fire and theft – this covers you for everything Third Party Only does, as well as protection for your vehicle in the event of theft or fire.
Comprehensive — offers the most protection, including everything covered by third party, fire and theft, plus cover for your vehicle in an at-fault accident.
Review your needs carefully — over-insuring can mean paying more than necessary, while under-insuring can leave you exposed to risk. As taxi driving is your livelihood, please make sure to that your coverage is the right level for your needs.
4. Secure Your Vehicle Against Theft and Damage
Insurers consider where and how you store your vehicle when providing quotes, as well as the security features it has in place. Improving these factors can could potentially reduce your premium.
Top ways to improve vehicle security:
- Install an industry-approved alarm or immobiliser
- Park your taxi in a secure or private location overnight
- Add a vehicle tracker for quicker recovery if stolen
Installing a dashcam is also recommended. While it may not directly reduce your insurance with Acorn, it provides reliable evidence if you’re involved in a dispute or accident.
Important: Some local authorities restrict the use of inward-facing, or audio recording dashcams in licensed vehicles. Always check your local council’s regulations, as non-compliant use of dashcams could invalidate your cover. For examples of further repercussions, please see TfL’s CCTV guidelines for taxis and private hire vehicles.
5. Insure Multiple Vehicles with Fleet Insurance
If you manage more than one taxi or operate a small business, fleet insurance could be a cost-effective option. Instead of insuring each vehicle separately, you can combine them under a single policy, simplifying paperwork and potentially reducing your total premium.
Acorn’s Connected Fleet Insurance offers:
- Centralised cover for multiple vehicles
- Real-time telematics and vehicle tracking
- Dedicated fleet support and account management
Fleet insurance is ideal for private hire firms, chauffeurs, and self-employed drivers running multiple taxis.
6. Understand the Impact of Your Vehicle Type
The type of vehicle you drive affects your premium. For example, electric taxis are often more expensive to insure due to:
- Higher repair and parts costs
- Specialist maintenance requirements
However, they can offer long-term savings through:
- Lower fuel and servicing costs
- Discounts on congestion and clean air zone charges
- Improved environmental credentials
When choosing a vehicle, weigh up all the costs, not just the insurance premium.
7. Register on the Electoral Roll
One small but often overlooked tip is to make sure you’re listed on the electoral roll. Insurers use this to verify your identity and address. If you’re not registered, it may raise questions about your credibility and, in some cases, result in a higher quote.
Registering is free and takes just a few minutes at gov.uk/register-to-vote.
Final Tip: Work With a Specialist Taxi Insurance Provider
Choosing the right broker is just as important as choosing the right policy. Acorn Insurance understands the specific needs of public and private hire drivers.
Whether you’re new to the trade or looking to switch, working with a specialist can help ensure you get a policy that’s right for you.
Ready to find a better deal? Get a quote or explore our taxi insurance options today.
Further reading…
Reducing Insurance Costs with Penalty Points on Your Licence →
Uber Drivers: How to Achieve and Maintain Five-Star Ratings →