Why is taxi insurance so expensive in Ireland?

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The number of taxis on Ireland’s roads has almost halved over a period of 10 years according to The Journal. A vast number of drivers have left the industry, with many citing the cost of insurance as a significant reason behind their decision to give up taxi work.

Experienced drivers have seen the cost of their cover rise to amounts that are simply unaffordable. Facing up against ever-increasing insurance prices, taxi drivers have been forced to choose between paying expensive sums to continue working or giving up taxi work altogether.

Why are taxi insurance costs so high?

Industry experts have cited a number of factors that have affected the price of taxi insurance in Ireland. Some argue that the market was far too competitive for a number of years, with premiums that were too low and not representative of the risk of insuring the policyholder. As a result, taxi drivers are now being penalised for insurance costs that were too low in the past.

Alongside this, the amount paid out in claims has contributed to the rising cost of taxi insurance in Ireland. Insurer’s pricing models are based on a statistical analysis of data, which focuses heavily on the costs paid out for claims.

In recent times, the cost of bodily injury claims in Ireland has been extremely high in comparison with the UK. In 2017, it was estimated that whiplash claims account for 80% of all motor insurance claims in Ireland. Due to the amount which insurers have paid out for these claims, taxi insurance premiums have risen to maintain the stability of the market.

For drivers who face expensive quotes upon renewal, a lack of competition in the taxi insurance market makes it difficult to find a cheaper alternative.

Introducing Zego

At Zego, we’re working hard to make fundamental changes to the taxi insurance market in Ireland. We want to provide drivers with new and improved ways of protecting themselves out on the road - all at competitive prices!

Zego’s taxi insurance is designed to offer drivers the protection they need at rates which are affordable. By combining insurance with advanced technology, our cover protects you against fraudulent claims and it means you’ll always have proof to submit in the event of any incident.

So how does it work?

When you purchase your cover with Zego, we’ll send you a free device for you to install in your car. It’s quick and easy to set up your device and it shouldn’t take you more than a couple of minutes.

If you’re ever involved in an incident while you’re on the road, you’ll always have proof to submit to us, which helps simplify your claims process. Our cover also helps to protect you against fraudulent claims that aren’t your fault.

If you’re interested in finding out more about what Zego’s cover can offer you, please click here.

Our friendly team are on hand to support 7 days a week. You can get in touch on 01 691 7584 and we’ll be happy to help.

Sources

https://www.thejournal.ie/taxi-driver-insurance-4262863-Oct2018/

https://www.independent.ie/business/irish/taxi-body-in-talks-with-new-insurer-as-prices-rise-by-up-to-300pc-34832791.html

https://www.independent.ie/irish-news/20000-fewer-taxi-drivers-on-the-roads-since-2009-36157548.html

https://www.irishtimes.com/news/politics/government-to-establish-commission-over-injury-awards-1.2930734

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