Taxi Insurance using Black Boxes – is it cheaper?

Black box taxi insurance policies, that track a driver’s behaviour via GPS, may not offer the value for money we believe they do, according to Auto Express. Many standard insurance policies can set back new drivers to the tune of £2,500 per year while taxi insurance based on black box technology regularly claim to knock off up to £1,000 from the cost of their premiums, but recent research made by Auto Express has found that this isn’t entirely true. The data they collected highlighted that black box policies were found to be typically more expensive for students who are seeking third party insurance, in comparison to the more traditional deals. In many cases, drivers in their twenties who are more likely to get fully comp insurance wouldn’t even save £100 a year by getting a black box deal. Insurers are also less likely to offer premium saving black boxes to those over 25 and currently in full employment.

Insurance for taxi drivers

The devices, a black box around the size of a mobile phone, attach under the car’s steering wheel or onto your dashboard and monitors your driving habits through satellite signals, the data collected helping the insurer determine your individual insurance premium. Factors can include how you brake or accelerate, your speed, distance travelled and even road positioning is taken into account. Seems fair enough; drive well and you’ll save money, but many drivers don’t understand that they could also be fined if the data indicates you’ve been driving badly. Drivers being monitored by the black boxes can be fined for speeding, selling their car, switching insurance policy or breaching the contracts small print. In the most extreme cases, sometimes fines can be as large as £100, insurers such as iKube fining drivers £100 per night for driving during the policy’s 11pm to 5am curfew. It’d seem that those applying for a black box policy can find themselves losing out on money from day one, with a penalty of up to £100 placed on anyone who misses the fitting appointment. Not holding certain documents such as a driving licence, MOT certificate or proof of ownership during the installation can result in fines between £30 and £45. If you buy a new vehicle, you’ll have to pay a fee to have the black box reinstalled.

Taxi Insurance


It’s important that anyone looking for taxi insurance shops around and researches the possibilities open to them thoroughly, rather than launching themselves into a policy after being promised smaller premium rates and costs etc. Black box technology continues to grow in popularity despite these reams of possible fees and penalties that you could come across yourself if you decide to grab one of these policies. In 2009 there was only around 100,000 different cars fitted with these devices and now there are 296,000 on the roads.

Are you currently trying to decide what form of taxi insurance is best for you? Confused by the numerous options open to you? Get in touch with us at and let us find the best policy to suit your needs at the cheapest price possible.

Call us today on 0800 221 8530 or 0161 975 5620