Black Box Taxi Insurance

What is black box taxi insurance?

Black box taxi insurance is a taxi policy where a small telematics box is installed in your vehicle, usually out of sight behind the dashboard, to record driving information. The box records telemetry including your cornering, braking and accelerating habits and the speed at which you drive.

It also contains a GPS unit that records the exact location the taxi has been driven and at what times. The black box has no control over the vehicle. It is simply there to record how the taxi is being driven and to log its location should it be stolen or involved in an accident.

Who needs black box taxi insurance?

Any taxi driver can choose a black box policy, but it is particularly worth considering for beginner cabbies who have less driving history for insurers to assess. Cover is suitable for all private and public hire providers, whether you drive a black cab, a minicab, work for Uber or use another vehicle that transports passengers.

Taxi firms running several vehicles may also benefit, as GPS tracking lets them see where each taxi is and organise collections more economically. For wider cover options, see our taxi insurance page.

Why have a black box fitted to your taxi?

The main reasons a taxi driver would want a black box are vehicle tracking, journey optimisation, better customer service and insurance benefits.

• Vehicle tracking: a taxi company can see where all of its vehicles are, and if a taxi is stolen the GPS tracking can help police quickly locate and retrieve it.
• Journey optimisation: tracking each taxi lets firms optimise routes to reduce fuel consumption, cut unnecessary mileage and better manage drivers' working hours, which benefits revenue and reduces costs.
• Customer service: passengers want a fast, efficient service, and taxis directed via the optimum routes travel more efficiently and are less likely to break down.
• Insurance purposes: insurers know they will not be on the receiving end of false claims and can easily identify drivers who do not speed or drive dangerously.

What does black box taxi insurance cover?

A black box policy provides the same taxi cover as a standard policy, with the telematics box recording your driving alongside it. Depending on the insurer, you may be able to add a range of extras:

• Damage to windscreen: often included in a taxi policy, but can also come as an optional extra.
• Licence loss: pays you an income for a period if your licence is taken away.
• Home assistance: help if you break down or your taxi will not start at home.
• Ongoing transfer cover: assistance for passengers who need to continue their journey if your taxi breaks down.
• Public liability: protection against claims from members of the public for injury or damage.
• Breakdown cover: covers the costs of a breakdown.
• Non-taxi use: some providers cover your own use of the taxi outside working hours, subject to your licensing authority's rules.
• Legal assistance: cover for legal fees and losses after an accident that was not your fault.

What is not covered by black box taxi insurance?

The black box itself does not add cover; it records how you drive, so the exclusions of your underlying taxi policy still apply. Telematics boxes record all driving habits, so insurers will know if you were speeding or driving erratically at the time of an incident, and that record will be taken into account when a claim is assessed.

Extras such as breakdown cover, public liability, licence loss and legal assistance are not automatically included and usually need to be added. Using the taxi for your own purposes outside working hours is only covered where the insurer offers it and your licensing authority allows it.

How much does black box taxi insurance cost?

Taxi insurance costs can vary significantly between providers, so it pays to shop around rather than accept the first quote. With a black box fitted, you can receive the benefit of reduced insurance rates, because the insurer can see for itself how safely you drive instead of relying on assumptions.

The details insurers use to price your cover include the make, model and value of the taxi, the type of taxi and type of use, your level of cover, your taxi and any private no-claims bonus, how long you have held your taxi badge, who will be driving, and any claims or motoring convictions in the last 5 years.

What information do you need to get a black box taxi insurance quote?

You will need three sets of details to hand:

• Taxi details: make and model or registration plate, type of taxi, type of use and approximate vehicle value.
• Cover details: level of cover, taxi no-claims bonus and any private no-claims bonus, how long you have held your taxi badge, who will be driving, and details of any claims or motoring convictions in the last 5 years.
• Your details: name, address, date of birth and contact details.

How do you compare black box taxi insurance quotes?

Complete one short quote form, and specialist taxi insurers on a panel will contact you with tailored quotes for your vehicle and how you use it. You can then discuss the quotes and arrange cover with the insurer you choose.

Because costs vary widely between taxi insurers, comparing several quotes side by side is the best way to see whether a black box policy works out cheaper for you than standard taxi insurance.