3 factors that affect fleet insurance premiums

No matter what insurance policy you have taken out, there are always factors that affect the premiums you pay for appropriate coverage. Taxi insurance is no different and is generally more expensive than regular motor insurance due to the risks involved with taxi drivers being on the road for many hours a day.

This is why nowadays many owners of taxi firms are turning their attention to fleet insurance to cover all their vehicles under a single policy. Of course, for a fleet of taxis, premiums will be more expensive, so here are three things that affect fleet insurance premiums that could save money for your business in the future.

Claims history

When applying for fleet insurance, taxi insurance brokers will enquire about any past incidents or accidents and take these into account when pricing your policy. If you have been involved in an accident, even if it wasn’t your fault, this may result in your premium being higher.

The cost of your policy can be reduced, however, if you go a year without making a claim. This is the idea behind a No Claims Bonus and while you may not be eligible for this until you’ve been a taxi driver for a few years, it is sure to reward you with lower premiums in the future if you remain accident-free.

Type of policy

Any Driver policies are the popular choice for taxi firms with a lot of employees. This is because the flexibility of allowing any driver at the business to drive any of the vehicles appeals to fleet owners, that is despite taxi insurance brokers considering this a high risk so bump up the premiums.

The other option is a Named Driver policy which is common amongst taxi firms with a small team of employees and often works out cheaper than Any Driver policies as each taxi will have a named driver or drivers registered to drive that specific vehicle. This is seen as less of a risk by taxi insurance brokers and further reductions can be made if the named drivers have a good claims history.


The vehicles that you want covered by your fleet insurance policy also affect the premiums. One of the first things that taxi insurance brokers need to know is how many vehicles are needing to be covered with your policy and then use this, along with the 3 Ms – make, model and mileage, to determine a price for your fleet cover.

Vehicles in your fleet with a lot of mileage can sometimes work out best insured separately rather than as part of the fleet, so consider this when applying for a fleet policy for further reduced premiums.

InsureFleet are one of the UK’s leading insurance brokers for providing help and advice on taxi fleet insurance. Our team of fleet experts will research the markets to get you the best deal on your fleet cover as well as providing additional breakdown and replacement vehicle benefits.

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