Steps to Reduce Your Taxi Insurance Cost

Significance of Taxi Insurance 

Taxi insurance is a type of commercial vehicle insurance that offers financial protection to taxis from any mishaps. Taxis  are more prone to risk as their run-time is usually high than a private vehicle. So, it is advisable for taxi owners to have an insurance policy that safeguards their vehicle from any loss or damage caused by natural calamities, man-made disasters, theft, fire explosion, and accidents. 

Steps to Reduce Your Taxi Insurance Cost

Check out the below tips to reduce your taxi insurance premium effectively-

1. Research Before Buying Vehicle  

The vehicle you choose will be your daily companion & source of income for the next five to seven years. Explore all the options available with various brands and compare them online. You can also check the manufacturer's website for rebates. At times, new model incentives are usually published on the dealer's website, so make sure you browse through their website before making a deal. 

2. Limiting the Number of Drivers 

In a taxi insurance policy, you have an option to include additional drivers. If you include more members in your insurance policy, the provider will update your policy along with an additional 50% of the premium. If you limit the number of drivers under a taxi insurance policy, then your premium price will be comparatively low.

3. Do Not Use NCB for Raising Small Claims

No Claim Bonus or NCB is the discount offered by the insurer to the policyholder for not raising a single claim in the previous year. It is given by your insurer for maintaining claim-free records and to encourage safe driving practices. Therefore, avoid using your NCB for raising small claims.

4. Transfer Your NCB

If you are planning to buy a new car and sell your old one, do not forget to transfer your NCB. While transferring the NCB, the benefit is given to the taxi insurance policy owner and not to the insured taxi. You can retain your accumulated NCB on your old taxi's insurance policy and save money by transferring to the new one.

5. Compare Policy Online 

You must spend your time finalizing a perfect vehicle insurance policy that meets your needs and is within your budget. So, it is always a good idea to compare different policies online. Read all the buyer’s reviews and feedbacks before purchasing an insurance policy. Also, we suggest you buy online taxi insurance as it saves time. Additionally, you can also avail huge discounts on the premium amount.

6. Pick Your Insurance Company Wisely

There are several parameters for buying an online taxi insurance policy. It is essential to check factors like- policy coverage, authorized garage, claim settlement ratio, personal accident cover, etc. It is always recommended to buy online commercial vehicle insurance from a company having IRDAI certification. In India, many insurers are selling various plans, therefore do thorough research about the insurance company and their claims settlement process.

7. Renew Policy On Time

A very common problem among the policyholders is not renewing the policy on time.  There might be several reasons for it, such as a hectic daily schedule, any emergency at home, etc. But make sure to renew the policy before its expiry date to enjoy protection against severe damages. If you do not renew your policy on time, it becomes void and costs you extra on your new insurance purchase, and you will lose your accumulated bonus.

8. Become a Member of the Automobile Association

Mostly all insurers provide a 5% discount on the annual premium to taxi owners who are members of the Automobile Association of Upper India and Automobile Association of Southern India. Therefore, enroll yourself as a Member of the Automobile Association to avail of this discount. 

9. Installing Anti-Theft Device 

If you install anti-theft devices like a gear lock, anti-theft alarm, or steering lock in your taxi, it will automatically reduce the annual insurance premium. Not only does it reduce the insurance premium, but you also get safety features against the incidence of theft or attempted theft claims. The insurers might ask high-value vehicles to be lodged with an anti-theft device before offering a discount.

10. Avoid Modifications in the Taxi

Many taxi owners prefer to modify their cars to upgrade their style and performance. Change is always a good idea, but as a taxi owner, you must avoid modifying your vehicle. To an extent, beautification is allowed by some insurers, while other changes in the accessories, body, or engine might affect your coverage.

Summing It Up 

As a taxi driver, you have many expenses to manage like repair costs, car servicing, maintenance charges, fuel, and road taxes. With the help of the above tips mentioned in the article, you can easily save money on your annual premiums on a taxi insurance policy. We suggest you to read all the policy documents and choose add-on covers as per your requirements.