INSURANCE INSIGHTS
INSURANCE TIPS TO HELP DRIVERS COPE WITH A CHALLENGING OPERATING ENVIRONMENT
Article by David Sweeney Head of Taxi Broking The Taxi Insurer
www.taxiinsurer.co.uk
PHTM EXPO is always a great opportunity to get together with colleagues from across the taxi and private hire vehicle (PHV) sector to network and catch up on the latest industry issues and developments.
This year’s event was no different, although there was one topic of conversation that dominated all others: how it’s becoming increasingly difficult for drivers to make ends meet.
As if to underline that point, PHV drivers in Liverpool, St Helens and Wigan recently staged a one-day strike to protest against a 20% commission rate being imposed on their earnings (
https://shorturl.at/9e9Ct).
And earlier this year, an alternative ride-hailing app was launched in London that gives drivers 100% of the fare, minus £0.50 per ride and a subscription fee of £30 a week (
https://shorturl.at/PUi3v).
To add to the challenge of dynamic pricing and dynamic commission rates, drivers are now facing the threat of driverless vehicles being on UK streets later this year, which they are naturally pushing back against (
https://shorturl.at/YgITY).
In the face of increasing commission rates, rising fuel and operating costs, but fares that have remained largely unchanged, it’s drivers who are feeling the pinch having to contend with reduced levels of income.
If drivers are continually forced to work extra hours to try and make up for lost revenue or simply break even, how long before they simply decide to leave the trade altogether?
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How drivers may be able to lower their premiums
Given that the taxi and PHV sector is among the five industries worst affected by inflation over the past decade
https://shorturl.at/dWzm9), it’s worth remem- bering that there are three principal measures that drivers can adopt to help keep their insurance premiums as affordable as possible.
The first of these is to install forward-facing CCTV cameras on their vehicle dashboards. Insurers will generally offer a discounted premium in return for cameras being installed in vehicles because, in the event of an accident, they’ve got a reliable visual record of an event as it took place.
Insurers understand that drivers are going to be involved in a certain number of accidents – there’s no way around that. But if a driver has installed a CCTV camera in their vehicle, it can help the claims department to make an informed decision on liability and settle the claim more efficiently.
The main benefit of settling claims in a timely manner is reduced cost. If a driver is at fault and the other party’s driving a hire car, the quicker the insurer can close that claim, the cheaper it is for them, because hire cars can cost up to £300 a day.
The second significant action that drivers can take is to fit their vehicles with telematic devices. Using embedded sensors, telematics constantly monitors vehicle performance, including engine temperature, idling time, tyre pressure and fuel usage. This data is then sent to the insurer, so it can monitor the driver’s driving style, and is used to help determine the driver’s risk profile, and therefore their premium.
A third way for drivers to potentially keep a lid on their insurance premiums is by working with a taxi insurance broker. These specialists have spent years nurturing relationships with a trusted panel of insurer partners and focus on finding products and policies that meet their clients’ requirements and expectations.
AUGUST 2026 PHTM
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