Mayor of London urges taxi driver representatives to engage with insurance companies

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Sadiq Khan Image Credit: Greater London Authority

The Mayor of London has said taxi drivers should look to trade associations or unions to engage with insurance companies when it comes to discussing the increased premiums the trade is facing.

Sadiq Khan, the Mayor of London, said neither Transport for London (TfL) nor himself could affect what taxi drivers pay for insurance, but acknowledged costs were rising.

Rising fuel and vehicle costs can, however, be covered by an increase in taxi fares. Inflation and rising running costs could push taxi fares in London up by more than 11% next spring, according to the latest cost index used to calculate taxi fares.

A mix of high fuel prices, rising vehicle costs and rapidly rising levels of inflation are driving the rise as the process of annual taxi fare reviews begin to take shape.

The latest fare increases were approved on March 9, 2022, when TfL’s finance committee met to approve a new black cab fare to help taxi drivers cope with rising costs.

London Assembly Member Keith Prince asked the Mayor of London if he would work with the insurance industry to find a solution to the “prohibitive car insurance premiums” facing the taxi industry.

Prince stressed that an important consideration for older licensees when renewing should be considered given the higher than usual costs.

Sadik Khan replied“I recognize that the costs everyone is facing at the moment, including licensed taxis and private hire drivers, across a wide range of areas are high and may increase further.

“Insurance costs are one of the factors taken into account as part of the cost index used to inform taxi fare decisions.

“I can’t set insurance premiums and neither can Transport for London (TfL). However, there are a number of industry and driver representative bodies and unions who are well placed to engage individually or collectively with insurance companies and lobby on behalf of their members.

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