If you have your own taxi service then you will have many items of expenditure one of which is taxi insurance. It is a legal requirement – not an option to have such cover unless your vehicle is declared SORN (Statutory Off Road Notification) and kept off the public road system.

Any way that you can reduce your taxi insurance has got to be welcomed. One thing you could do is seriously consider shopping around to see if you can get the cover cheaper elsewhere when you receive your annual renewal notice. Taking such action is particularly important when you take into account that according to the recently published Confused.com Car Insurance Price index the average cost of insuring a car has been falling for quite some time now. Although the index relates to car insurance it is quite possible that a similar pattern may be seen with taxi insurance.

The latest index referred to above was published on the 24th March 2025. It showed that in the first 2 months of 2025 the average cost of car insurance here in the UK fell to £777 per annum. That is a drop of £164 per annum – a fall of 17% when compared with March 2024. We are sure that you will agree that is a sizeable reduction and one that will be welcomed by many motorists.

The average cost of car insurance in the UK in the last quarter of 2024 amounted to £834 per annum so there has been a fall of £57 per annum – a drop of 7%. Again, we are sure you will agree, that is a significant reduction.

Where you live, amongst many other things, impact how much you are charged for insuring a car. If you happen to live in Inner London, then you will be disappointed to read that, on average, it is the most expensive region in the UK to insure a car with premiums averaging £1,208 per annum. That is actually £293 per annum less than the average premium 1 year ago. If you live in outer London then the average premium in the first 2 months of 2025 amounted to £996 per annum with this being £224 per annum lower than 12 months ago. If you live in the North East then premiums averaged £675 per annum – a drop of £137 per annum in a year.

How old you are plays an important part in how much your insurer charges you to insure your car. Generally speaking, the younger motorist pays more than an older, more experienced driver. In the first 2 months of 2025 an 18 year old paid an average of £2,434 per annum. A 21 year old paid an average of £1,943 per annum.