How to Reduce the Costs of Private Hire Insurance

Keep your driving record clean

There are significant discounts for drivers that have not been involved in claims processes. The provision of private hire insurance is about risk management. If you have not been claiming on the policy then the assumption is that you represent low risks. Likewise a high claims ration indicates that you are a high risk factor for the provider. In order to ensure parity, the rates for payment will be adjusted according to the risk factors which have been attached to the business or the driver that is applying for coverage.

Shop around for the best packages

There are certain price comparison websites which can help you to secure really good deals on your private hire insurance. There is no cost when you are doing a comparison. The benefit is that you get the best policy that you can have according to your personal circumstances. From a business perspective, this shopping around will ensure that the costs of running the business are not increasing. You can pass on some of these savings to your loyal customers in order to expand your base.

Limit the number of drivers on the policy

Do not use your business as if it is a public hiring house. There have to be some restrictions on the types of people that are allowed to drive the vehicles. The private hire insurance provider will take this action into consideration when they are deciding on the correct premium to charge. The assumption is that high usage will normally increase the risk that your vehicle will be involved in an incident. Therefore the low usage vehicles will be given discounts in order to reflect the level of risk that they are assessed to have through the product provider.

Go with reputable providers

The idea of going with reputable providers is to ensure that you get a good service. A provider with a good record in the industry is hardly going to fall at the last hurdle. They will do everything in their means to ensure that you get a great service. Moreover they will be careful to research the product so that you can follow through with the main requirements that are set by the local authority which is responsible for the licensing function. It is sometimes better to go with the large providers because they have a reputation to protect.

Do not renew the policy without a review

At the end of every year you will be given the opportunity to renew your private hire insurance policy. Before accepting the renewed quotation you need to ensure that it is fair by industry standards. That means that you need to be very inquisitive about the discounts that they are offering. Do not just rush to accept the package without considering what the business rivals are getting. The current provider might even be persuaded to give you further discounts on the basis that you are getting the best policy at the right time for the New Year.

Source: http://ezinearticles.com/6269702

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