Monday, 08 October 2018 GMT
Author: Staveley Head
Renewal time is fast approaching, and like all bills, they just seem to come at the worst time imaginable, which for most of us is any time at all! So this year you’re determined to get yourself cheaper taxi insurance and save yourself a bit of extra cash, but are you really saving yourself extra cash in the long run?
Cheap cover and your no claims discount (NCD)
We all want to save a bit of cash when we can, and let’s face it, for some of us, commodities such as insurance, gas and electric are the first place we’ll look to make savings. Although with insurance, quite often it's worth your while spending that little bit extra to make sure you’re covered from every angle. Many try to get the cheapest cover possible, and they can save a bit of money, but is it worth the risk? Your premiums could increase if you haven’t protected your no claims discount and make a claim. This means that in the long run, you’re actually worse off, but what if you’re a really safe driver? Well, unfortunately, you still might be at risk of the premium rising if you haven’t got your NCD protection, as even if you’re involved in an accident that wasn’t your fault, your NCD will be at risk.
Providing the right details
It probably won’t come as much surprise to you that insurers want accurate details, but this really will benefit you too. When it comes to renewal time it’s hard to know off the top of your head what your mileage per year is and you can either overestimate it, which could cause higher premiums, or underestimate it which may mean you’re not covered in a claim. We find the best way to calculate it is to figure out how much you do on a given day and times that by the number of days you work during the year. Having all your documents with you at the time of renewal is the best way to provide the most accurate details.
You might be thinking of raising your voluntary excess as a way of reducing your premiums, and this can be an effective way of cutting costs, especially for safe drivers. Deciding to increase your excess is a gamble based on risk; Increase it, and you’ll reap the rewards of lower premiums but face a larger cost when it comes to making a claim. It is vitally important you don’t go overboard with an unaffordable excess fee as the last thing you want is to be unable to meet the cost of a claim!
What can I do to lower my premiums?
- Avoiding convictions - This probably comes as no surprise, but even when some of the most basic rules like keeping within the speed limit are breached, it can lead to points on your licence.
- Build a clean record and your NCD - This is one of the best ways to reduce your premiums.
What else should I consider if I choose tailored taxi insurance?
- Breakdown Insurance - This will ensure that if your vehicle breaks down, you’re covered to get it fixed. You can also opt for homestart which will save you any fees if you need to get the vehicle picked up.
- Excess Protection - This will ensure that you can claim your excess fee back should there be no responsible third party.
- Public Liability Insurance - If you're a business owner, you might want to consider this. It will protect you if a member of the public suffers injury or any damage to their property as a result of your business. This can cover you in terms of legal expenses or compensation claims.