Taxi drivers and taxi firms are feeling the pinch thanks to soaring fuel prices and increases in licensing but finding cheap taxi insurance can bring a little light to the current gloom.

The reality is that motor insurance premiums have risen sharply in recent years as insurance underwrites who once made money by investing motorists’ premiums in the markets turn away from that troubled arena and look to those premiums itself as their main money maker.

And taxi drivers, like all those who drive for a living, are paying a high price for the higher risks involved in their industry. Premiums are routinely higher because of the increased wear and tear on a vehicle driving thousands of miles in a week and because cabbies must be also insured for carrying passengers.

However, shopping around can definitely throw up some great examples of cheap taxi insurance. Obviously the cost of cover will depend on whether you’re looking for public hire or private hire insurance. Private hire cover is for those drivers who are licensed to carry passengers only on a pre-arranged basis. Public hire is for black cab and hackney drivers licensed to pick up passengers at any time.

Public liability or third party liability insurance is not always necessary but can provide peace of mind to a driver, as can asking for cover for loss of income in the case of accident or injury.

Just as with ordinary motor insurance, cabbies can reduce the cost of their premiums by various means, including increasing the voluntary excess in place. Most policies insist on a compulsory excess of £250 but increasing this excess to £500 will cut the overall cost of the policy.

Another way to reduce the cost of cover is to restrict the number of drivers on each policy while those with longer driving experience will find this can also save them money on their premium.

Use a search engine to find specialist taxi insurance brokers or go to a price comparison site to find cheap taxi insurance that provides all the cover you need at a price that won’t break the bank.

Brought to you by the taxi insurance comparison website Taxi Protection. Why not visit us to compare cheap taxi insurance from a range of top providers.