There are a number of things you need to consider when taking out taxi driver insurance, but one that’s often overlooked is the level of excess. Many people assume that this it set in stone but that doesn’t have to be the case – a lot of insurance companies will be able to offer voluntary excess so you can increase (and in some cases even decrease) your current level, and there are both pros and cons to doing so.
Increasing your excess means you’ll be able to reduce your premiums for cheaper repayments and more cash in your pocket. Insurers will normally be able to offer great discounts if you choose a voluntary excess – they’ll have to pay out less in the event of a claim so will lower your premiums accordingly, and it can be a great decision if you’re looking for a short-term cash injection to ease the burden.
But, increasing your excess also means you’ll have to cover more of the costs should you need to make a claim, and if you increase it too much it can be a huge blow to your finances. You need to decide whether or not you could afford to cover the costs should the worst happen, and so it’s simply a case of weighing up the options – short term savings versus the potential for loss later down the line.
Of course, it’s ultimately a very personal decision and simply depends on your finances and budgetary requirements, but often it’s a good idea to strike a balance between the two. If you marginally increase your excess to a level where you’ll make short-term savings yet will also be able to cover it should the need arise you can have the best of both worlds, and as long as you keep it realistic there’s no reason not to give it a go.
So, if you’re looking to arrange taxi driver insurance always make sure to consider your level of excess before you sign on the dotted line. Insurance firms will often be willing to negotiate so it makes sense to see what can be offered, and if you choose wisely you can have a level that perfectly suits your requirements.