10 Ways to Lower Your Taxi Fleet Insurance Premiums
Taxi fleet insurance can be a great deal compared to auto or business insurance, but it can also be one of the most expensive types of insurance you buy each year.
Whether you’re looking to lower your taxi fleet insurance premiums or just figuring out how much you should be paying. You can do several things to get the best rates possible and still ensure that your vehicle is protected in case of an accident or theft.
Luckily, you can do plenty of things to keep your taxi fleet insurance premiums as low as possible, including some ways that you might not even have considered.
If you want to learn about some different ways to lower your taxi fleet insurance premiums, read on.
Table of Contents
Get Rid Of Older Taxis
Many taxi companies have older vehicles that are no longer worth anything after an accident. If your fleet has aging taxis, you should strongly consider replacing them.
More than meets the eye with how much a taxi is worth after an accident: it can significantly influence how much money your insurance company will reimburse you for your lost taxi.
You should also look into fleet discounts and multi-policy discounts for larger fleets of insured taxis provided by Humn.ai through products like Rideshur.
Regular Vehicle Maintenance
Regular vehicle maintenance is essential for lowering your taxi fleet insurance premiums. By keeping up with regular oil changes, tire rotations, wheel alignments, and other general repairs/maintenance, you can avoid major problems down the road.
This can save you money on auto repairs in general but also helps keep your car in good standing with your insurance provider.
If you keep up with these minor repairs consistently throughout each year, some insurance providers will reward your loyalty by offering additional savings on your policy or a discount on your rates
Ensure All Your Drivers Are Disciplined
One of your drivers being careless behind the wheel can have a ripple effect on your insurance premiums. If one of your drivers is involved in an accident, they will likely be paying higher premiums.
The same goes for negligent driving (speeding, running red lights, etc.) or even speeding tickets. Another benefit of disciplined drivers is that their good habits could rub off on their co-workers and increase everyone’s safety when they are out on the road
Each one of these factors can impact your premium rates directly, so it’s important to make sure you have them under control as much as possible.
Invest In Telematics
Try investing in telematics to find a more affordable taxi fleet insurance quote. Telematics technology is standard on most cars manufactured today and is often referred to as On-Board Diagnostics (OBD) devices or black boxes.
These small devices have revolutionized how car owners drive and have helped drivers reduce their insurance premiums by bundling driving habits into an easy-to-understand package for insurers.
If you’re interested in lowering your rates, get with your insurer about adding telematics, GPS, or a smartphone app (depending on what you already have in place). Many offer significant discounts for these new technologies.
Reduce Or Avoid Fines
Having your license revoked or getting a large fine can put a serious crimp on your bottom line. Keep track of driver behavior and make sure they comply with all local laws.
You can get more advice on reducing taxi fleet insurance premiums here. Fines and lawsuits hurt your bottom line: As soon as one of your drivers gets into an accident, you start paying for it — whether you’re at fault or not.
Getting just one non-fault claim will increase your premiums; you could see them soar by hundreds of dollars every year if you have multiple claims.
Train All Your Drivers
Make sure that all your drivers go through a defensive driving course. Not only will your new knowledge help you protect yourself and others on the road, but it also can save you money.
Underinsured motorist coverage is a standard part of most fleet insurance policies, and if one of your drivers causes an accident, they might not have enough insurance to cover damages.
In these situations, you’re responsible for covering costs that aren’t covered by their policy—and you could end up paying much more than you would with properly trained drivers. Keep track of how many hours each driver drives in a given month and avoid policies with higher premiums for higher mileage.
Reduce Daily Mileage
One of the easiest ways to lower your taxi fleet insurance premiums is by decreasing your daily mileage. By keeping track of your daily mileage, you’ll see how much you travel during peak and off-peak hours.
Then, look for ways to reduce your peak-hour mileage—for example, driving later at night or offering shorter trips when traffic is most congested. One study found that Uber drivers who took more than 50 rides per week increased their insurance premiums by 45 percent. If you can cut down on daily miles driven and decrease work hours, it will lower your premium costs.
Evaluate Driving Records Each Year
You don’t need to worry about having your drivers undergo expensive and invasive medical tests or even watch how many miles they’re driving per year. You have to get in touch with their previous insurance provider and ask for a copy of their driving record if they have one.
If you want accurate information, ask for all four pages of your driver’s most recent motor vehicle report (MVR). The first page is an overall summary of your driver’s history; it will tell you if any tickets were issued but not what they were for.
Have Your Policy Customized For The Industry You Operate In
If you operate a taxi business, your insurance provider likely has experience handling these risks. However, if you take extra precautions (such as installing security cameras), your insurance company might offer lower premiums than competing companies.
So contact your insurance agent and ask them to customize a policy based on your unique risks and needs. This could save you money—but it takes some legwork!
Consider Insuring Based On Years Of Experience Rather Than Miles Driven
If a driver is relatively new to driving, he may be less experienced than one who’s been driving for several years. That can mean there’s a higher risk of accidents happening, which could, in turn, mean higher insurance premiums.
To help decrease costs, look into insuring your taxi fleet based on experience and not mileage. If one of your drivers has more experience and fewer miles driven, you can potentially save money by giving that driver discounted rates.