With fuel and living costs reaching record highs, any successful taxi driver will have to keep a careful eye on their bottom line if they want to stay in business. Whether at home or at work making ends meet has certainly become harder for many people. That’s why we’ve come up with the Taxi Insurer guide to cutting the cost of living.
These tried-and-tested tips may not be relevant for every taxi driver but if at least a couple work out then it will have been worth a read. Indeed, some of these could potentially save you thousands of pounds over the coming year.
From driving more fuel efficiently and cutting maintenance costs to having the right taxi cab insurance, there’s enough here to help anyone beat the financial squeeze.
So, what are you waiting for? Let’s get saving!
Make your taxi more fuel efficient
As a taxi driver, fuel is going to be one of the biggest drains on your finances. But there are also lots of things you can do to save and stay profitable.
Stay in the driving seat with these three quick tips for making your car more fuel efficient:
1. Check your tyres
A simple check of tyre pressure can save you a lot. Underinflated tyres will cause a drop in mpg meaning you’ll have to fill up more often. It's safer, too.
As every year dozens of people die in accidents caused by poorly inflated tyres.
2. Clear out your boot and ditch the roof rack
Any unnecessary weight will increase fuel consumption. As will the extra drag caused by a roof rack.
The more you drive, the more you’ll save. Particularly if you do a lot of stop-start driving and city trips.
3. Monitor your fuel economy
How will you know what progress you’re making if you don’t know what your current MPG is? As well as on-board systems there are also apps you can use to help you calculate mpg every time you fill up.
If you’re looking for lots more tips then be sure to read our list of 23 ways to save on fuel. From fuel efficient driving techniques to joining a green taxi company, there’s a lot more you can do.
Take stock of your driving skills
Even professional drivers can fall into bad driving habits over the years. As well as making your taxi more fuel efficient it’s also worth taking a look at your own driving skills. We’re sure you know these already, but they’re still worth remembering.
- Slamming down hard on the accelerator or brake is a real gas-guzzler.
- Drive gently at the start of any shift. A taxi is at its least efficient when cold.
- Driving smoothly in a high gear while sticking within the speed limit can save you hundreds of pounds a year.
- Avoid idling. Simply waiting around in traffic can use a surprisingly large amount of fuel. If you’re going to be stopped for more than 60 seconds then turn off your engine.
- Look out ahead. Anticipating what other road users will do next will help you keep your speed steady and save on fuel. You’re also less likely to be involved in an accident.
Consumer champion Which? has lots more money-saving driving tips that taxi drivers should consider.
Find the cheapest fuel in your area
This is the Holy Grail for many drivers, but in the past finding the cheapest price at the pumps has been easier said than done. However, nowadays there are many helpful apps and online tools to help you search out the cheapest stations where you can fill up.
Shopping around can easily save you £10 on the cost of a full tank, which is big money over the course of a year. Supermarkets still tend to offer the best deals.
Try to avoid motorway service stations where prices are the most expensive.
Filling up tips to help you out
While we’re on the subject of petrol stations here are a couple of things worth remembering when you’re next filling up.
- Don’t fill up with fuel unless you need to. If you find yourself constantly topping up then think again. Driving around with a full tank of petrol will harm your fuel efficiency.
- Don’t leave it too late. On the other hand, if you’re running on empty then you might panic and fill up at the very next place you see, which might not be the cheapest.
- Don’t pay extra for premium fuel. If you’re driving a normal ‘non-performance’ car then there’s really little or no appreciable difference between premium and standard fuels. But there is a big difference in price.
- Petrol or diesel? Have a little think about whether your next car will be petrol or diesel. Depending on your taxi business you could save money by switching. And what about an electric or hybrid vehicle?
Enjoy the benefits of a fuel card
Managing fuel consumption is an important part of any successful taxi business. Fuel cards are a popular way for drivers to keep fuel costs down. Taxi drivers can use them like a credit or debit card to pay for fuel.
You might even get a discount. Not only can this help reduce costs, but it takes some of the pain out of fuel expense claims.
Check your breakdown cover
Just like taxi cab insurance it’s often worth shopping around for breakdown cover. There are many different options to choose from and some new providers that it might be worth researching.
It's also worth asking your insurer if it offers this as an add-on to your policy.
Keep on top of maintenance
The benefits of regularly having your taxi cab serviced are something no professional driver will need convincing of. Whether topping up fuel, replacing bulbs or checking air filters, keeping on top of maintenance issues will not only improve your vehicle’s performance but will also save on costs in the long run.
In particular, checking simple matters such as tyre tread depth or washer fluid levels before an MOT could save you inconvenience and expense.
Many vehicles fail MOTs due to minor faults which could have been easily rectified beforehand.
Source car parts yourself
Receiving a big repair bill is never a nice experience. But buying replacement car parts yourself and getting a reputable garage to fit them could potentially save you hundreds of pounds.
Watch those coffee breaks
We all love a nice cup of tea or coffee during a break. But not everyone wants to make do with a thermos from home. Many of us love the luxury of a coffee shop instead.
But that doesn’t mean you can’t still save on costs.
Rather than choosing an expensive option such as a latte or cappuccino, how about going for a filter coffee instead? And how about bringing your own cup?
Some coffee shops will give you a discount for using a refillable.
Save £1,000 over your lunchtime
Taxi drivers are busy people who can often fall into the trap of taking the most convenient option when it comes to lunchtime. But if you’re looking to save money (and improve your health) then that could be a mistake.
Making sandwiches at home rather than buying a pre-packed meal every day could save you a tidy bundle.
Search your bank statements for unused services
Subscription services can be a big drain on your finances. And when business is doing well, it’s all too easy to sign up for more than you need. Take a look through your bank statements to see if there are any you’re no longer using.
Whether a magazine subscription, streaming service or gym membership if you’re not getting the use out of them could now be the time to ditch?
Don’t forget to haggle
Haggling isn’t just for market traders, there are plenty of places where you might be able to get a better price. You just need to ask.
For example, when your phone deal comes to an end, give your provider a call and ask them to give you a better price.
And if you’re feeling a bit embarrassed to do this then remember that every extra pound you spend needs to be earned. With many taxi drivers complaining that the cost-of-living rises mean they have to work longer hours and see less of their families then can you really afford not to haggle?
Consider whether paying monthly is the best option
Paying monthly can be a very useful way to pay for a whole range of services, particularly when you’re just starting out as a taxi driver. But sometimes paying upfront for the year can save you hundreds of pounds.
If you’re paying monthly then find out if this is still the best option for you and your taxi business.
Get rewarded for your loyalty
Just because you’re a loyal customer doesn’t mean you’ll always get the best price. Speak to the helpful team at Taxi Insurer and see if you could save on your taxi cab insurance.
Appeal against parking tickets
For anyone who drives for a living, parking tickets and other fines can be an occupational hazard. But if you think you’ve been unfairly caught out then it could be worth appealing it.
Make sure to get your evidence straight, check the terms and conditions, and present a mature and balanced case.
But if you think you’ve been issued a ticket fairly then don’t delay paying up. In some cases, the fines will be reduced by 50% if you pay within a certain time.
Park away from other cars
An easy way to reduce the risk of expensive damage to your taxi is to get into the habit of parking away from other vehicles. A carelessly opened car door or a scrape as someone drives out of their spot can cause damage that you might easily miss if you’re in a hurry.
Whether you own your own vehicle or are leasing, even small car park panel dings or scrapes will cost you money.
Don’t let money saving compromise your safety
We all love saving the pennies but when it comes to tyre safety it can be a big mistake to just go for the cheapest. In tests, cheaper tyres tend not to perform as well as more expensive tyres.
They often increase stopping distances in the wet and have a negative effect on handling. And they may even end up costing you more money as they not only hit your fuel economy but also need replacing more regularly.
Indeed, research conducted by road safety charity IAM RoadSmart recently revealed that nearly 40% of surveyed drivers said they would consider purchasing part-worn tyres to save money.
A worrying potential change in driver behaviour.
Something that not a lot of people know is that last year the UK introduced a new tyre safety labelling system.
Read this Taxi Insurer guide to learn about the new labels and how they could help you make a better choice when it comes to buying new tyres for your taxi in future.
Washing and valeting your taxi at home
No driver wants to be working in a dirty or messy car. But having your taxi professionally washed and valeted on a regular basis can soon get expensive. Depending on the type of car wash or valeting service you use, you could save hundreds of pounds a year by doing the job yourself at home.
Cleaning your taxi both inside and out at home is very straightforward and cheap in comparison to visiting automatic or hand car wash locations every couple of weeks.
It’s also a useful way to give your taxi a weekly maintenance check. When you’re taking so much care cleaning, polishing and waxing, you might spot an issue you might otherwise have missed.
When your vehicle is such an integral part of your earning potential it’s vital to keep it in tip-top shape.
Wash work clothes at cooler temperatures
If you’re spending time and effort keeping your taxi spotless, then you’ll no doubt be doing the same when it comes to your own appearance. Wearing smart clothes and being well groomed is important to your business image.
But this can also come at a cost.
Washing your work clothes at a lower temperature can shave money off your energy bills over the course of a year. Go easy on using the tumble dryer. It’s estimated that the average tumble dryer costs £1.50 per cycle and nearly £180 a year.
Wear a thermal woolly vest
No, we aren’t your mother! But when you’re sitting for so long behind the wheel it’s all too easy for you to start feeling a chill during the bitter cold of winter.
Rather than turning on your car’s heater (and using up fuel) extra layers can help keep your body well insulated.
By helping to keep you feeling extra toasty, when you return home, you’ll be less likely to turn up the heating. Saving money at work could lead to money saving at home, too.
In fact, turning down your thermostat at home by just a degree or two could save you a considerable sum over a year.
Shop at the wrong time of year
If you like the sound of a woolly vest above then now might be just the time to buy one. The cheapest time to shop is always at the ‘wrong’ time of year. Just like stocking up on Christmas decorations in January or Valentines’ Day cards on 15th February, winter thermals will be at their cheapest as we head towards the warmer months.
Every time of year is the best time to go shopping for taxi cab insurance. Our specialist insurance team is always here to help find you the very best policy for your needs.
Buying a new car – then watch for recent car tax increases
From 1st April car tax is set to increase with the changes affecting millions of motorists, including taxi drivers. Most motorists are facing an increase of between £10 to £30 a year.
Although those buying a brand-new car (particularly if it’s a more polluting vehicle) could face the biggest increases.
Change over to an electric vehicle and save
Should you go electric in 2022 ? An important question for any taxi driver in this era of runaway climate change and low emission zones. Compared with petrol and diesel vehicles, electric vehicles can still be quite expensive to buy.
But in the long run many commentators believe you will save by switching to electric.
As well as the significant financial incentives still being offered, it has also been suggested you can make significant cost savings when it comes to running and maintaining an electric vehicle.
A common question you might be asking is, will my taxi cab insurance increase if I make the switch? Or even, will anyone insure my electric taxi?
Give Taxi Insurer a call to see what we can do.
Use all of your tax breaks
There are lots of potential allowances and tax breaks that can be used to protect your savings and investments from the taxman. Make sure that you’re taking advantage of everything to which you’re entitled.
Cut costs and help the environment
Did you know that cutting costs can also be eco-friendly? Well, it can.
Read our Taxi Insurer guide on how to be an eco-friendly taxi driver and start saving today.
There are lots of ways to be greener as a taxi driver. Many of which can easily become a routine part of your taxi service, just like renewing your taxi cab insurance or regularly cleaning your car.
Get on your bike
When you’ve been behind the wheel of a cab all day, do you really want to drive any more than you have to?
Swap the accelerator for real pedal power by getting on your bike when you’ve finished work for the day. It’ll save you money and be great for your physical and mental health.
Protecting your business with taxi cab insurance
At such times of financial pressure, working as a taxi or PHV driver can be stressful. Our interest-free payment plans will make your taxi cab insurance more manageable alongside your other business expenses.
Get a quote for taxi cab insurance today.
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