Taxi drivers may find it of interest to read that the average cost of car insurance dropped slightly in the 3rd quarter of this year according to the Confused.com Car Insurance Price Index that is published on a quarterly basis.

The average premium for fully comprehensive car insurance in the 3rd quarter of 2026 amounted to £713 per annum. That is a reduction of an average of £22 per annum in comparison to how much car insurers were charging a year ago. That equates to a fall of 3%. It is interesting to note that a 17 year old is paying an average of £253 per annum less than 12 months ago albeit young drivers, on average, pay an awful lot more to insure his or her car than a mature, experienced driver.

For instance, drivers in the 17 to 20 years of age bracket pay an average of £1,860 per annum compared to drivers in say the 30 to 39 year old age bracket who pay an average of £843 per annum and those in the 50 to 59 year old age bracket paying an average of £545 per annum.

There are many factors that car insurance companies take into account when deciding how much to charge a customer for cover. For instance, they look at the age of the motorist as referred to above, the make and model of car, how many miles the car is driven each year as the more miles you do the more likely you are to be involved in a road traffic accident, the level of cover you require, what voluntary excess you choose, your claims experience, are there any other drivers to be named on the policy and where you live.

With regard to the latter, you may be interested to read that if you live in Inner London then, on average, your car insurance premium is the highest in the UK with premiums averaging £1,079 per annum. If you live in South West England premiums average £550 per annum. The difference is partly due to you being more likely to be involved in a road traffic accident as there is a higher density of vehicles and you are more likely to have your car stolen.

If you are setting up a taxi service business for the first time or your existing taxi insurance is coming up for renewal why not contact us we provide access to a panel of specialist insurers. We can hopefully help you obtain a competitive taxi insurance quotation without any obligation.