Taxi Insurance: Reducing Costs and Increasing Fleet Profitability

From 1 September 2024, taxi companies and sole traders must take out compulsory carrier liability insurance. This requirement (Law 278-FZ) was signed by the Russian president on 24 June 2023.

This article explains how modern monitoring systems reduce accident risks and increase operational efficiency, enabling lower insurance rates.

Benefits of taxi monitoring systems

1. Route Monitoring

A live interactive map lets you track every vehicle’s movements in real time. Monitoring road conditions reveals driver speed, traffic violations, and accidents.

2. Safety

A panic button enables drivers to alert you quickly in emergencies, allowing for rapid response without unnecessary calls.

3. Remote Engine Lock and Nano Tracker

In case of theft or inappropriate driver behaviour, the engine can be switched off remotely. If a vehicle is stolen, its location can be tracked via a nano tracker. The tracker also exposes drivers taking longer routes to increase fares, which lowers customer satisfaction. Tracking helps prevent these issues.

4. Automatic Maintenance Scheduling

For fleets with over 20 vehicles, manual maintenance tracking is difficult and missed services can lead to losses.

5. Speed Control

Drivers rushing to complete rides can cause rapid vehicle wear—tyres, brakes, fuel. Unchecked aggressive driving results in high company costs and negative passenger reviews.

The monitoring system can also support:

• working hours tracking
• geofence entry/exit control
• accident-free operation
• engine run time monitoring
• route compliance
  

Equipping vehicles with safety systems reduces taxi fleet claims. This trend is growing and remains the most effective way to lower taxi insurance costs.