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'That is insane': Taxi driver quoted €17,000 for insurance 'had no choice' but to pay so he could work

The cost of insurance for taxi drivers has increased sharply in the past three years, the National Private Hire and Taxi Association.

A FOREIGN NATIONAL quoted over €17,000 for taxi insurance for a year, was asked to pay nearly €5,000 upfront to keep his car on the road.

The issue of higher taxi insurance comes against the wider backdrop of much higher premiums in recent times, with the government’s working group aiming to tackle these high costs facing difficulties in bringing them down so far

Faced with a choice between not working or paying the insurance, the Dublin-based man said it left him with little option but to pay up the deposit so he could stay on the road.

His situation is one common to a number of taxi drivers looking to get insured on Irish roads, who face difficulty in affording to do so. 

The man was involved in one collision on Irish roads in the past three years, although it was not while driving his taxi. 

“The car is only worth €20,000,” the taxi driver told TheJournal.ie. “I had a claim against me, after a guy said he had neck pain after an accident with the car. The cost of repairing the car was only a few hundred euro.

I’m in stress now today because I have to pay them that deposit. I don’t have a choice or my car would not be fully covered. 

Taxi drivers we spoke to after fare increases last year also cited insurance as a cause of complaint. One said: “My insurance went through the roof this year, with no real reason given. It’d put you off getting into this game.”

The figure drivers are quoted however, can range vastly. Another driver we spoke to, with a 10-year-old car, and nine years’ experience as a taxi driver was recently quoted €2,300 to renew his insurance.

Another, with a newer car but with much fewer years in the job, was quoted €4,500.

Jim Waldron, spokesperson from the National Private Hire and Taxi Association, told TheJournal.ie that he’s heard of costs over €10,000 for new people coming into the business, but that it wouldn’t always be the case. 

Even for those not paying such costs in this bracket, many taxi drivers are still feeling the pinch in recent years, according to Waldron.

He also said that a company acquiring a number of taxi licence plates in one go is often better placed than an individual to source reasonably-priced insurance, with the individual usually facing a higher premium. 

“Overall, the last three years has seen insurance go up year-on-year to about 35% higher,” he said. “As an association, we’ve been trying to bring the cost of insurance down by bringing in more competition, and there are talks going on there.

Someone going in with 50 plates could get a more favourable insurance policy where an individual driver has been crucified for the last few years… It’s a business cost, but there’s only so many hours in a day that a taxi driver can work. The last thing we’d want people to be doing is to work morning, noon and night, and then have to hand what they’ve earned over to the insurance company.

High costs, dwindling numbers

File Photo Three taxi drivers who challenged the deregulation of the taxi market in 2000 have lost their case in the High Court. The drivers argued that the sudden deregulation of the market had reduced the value of taxi plates from almost 100,000 euro to Wanderley Massafelli / Rollingnews.ie Wanderley Massafelli / Rollingnews.ie / Rollingnews.ie

The number of taxis in Ireland has already dropped dramatically in recent years, with the high cost of insurance often cited as a deterrent. 

From a high of 47,222 drivers with valid licences in 2009, there were just 26,012 licences last year. 

In all, there were 400 less taxi drivers on the streets in 2017 compared to the previous year. The majority of drivers (54%) hold a Dublin licence entitlement.

Earlier this year, the National Transport Authority launched a campaign aimed at recruiting 1,600 taxi drivers.

Its CEO Anne Graham said while having 26,000 drivers licenced “might sound like a lot, but they are not all available all of the time, which means there can be shortages at certain period particularly at peak hours and weekend nights”. 

According to NTA research from 2016, the average metered revenue per week for a taxi driver in Dublin was €635, with the high end stretching up to €1,189.

The question of the cost of insurance has been raised in the Oireachtas a number of times in the past year, as the government aims to arrest the cost of car insurance which has skyrocketed in recent years.

In 2015 alone, more than a third of Irish drivers saw their insurance rise by up to 50% – a situation that descended into something of a blame game between insurers and the legal profession

Work has been done to rectify the problem however, starting with the publication of a fresh Book of Quantum in 2016, the first in 12 years, which officially crystallised the level of claims being seen in Ireland.

Furthermore, a recently published report from the Personal Injuries Commission has highlighted the “stark multiples” of compensation payouts in Ireland compared to our European counterparts. 

Insurers say it is these payouts that lead to higher premiums, and the report says that taking appropriate action now would help to achieve a “greater level of consistency in Ireland in the assessment of general damages”.

Waldron added that when a taxi driver has had an accident, it can be very difficult to avoid facing a spike in the cost of insurance.

“Absolutely, it shoots up,” he said. “I can understand why it would be that someone would be quoted as high as €17,000 if there’d been a claim. It’s very hard to switch insurers then too because the first thing they ask you on the form is ‘have you had an accident?’.”

Speaking at a Dáil debate last month, Independent TD for Dublin Bay North Tommy Broughan said that every deputy has been contacted “time and again by all kinds of hard-pressed constituents”.

“We have also been contacted by distressed taxi drivers, who are in the public transport mould,” he said. “Due to changes in their training and so on, they have had to come up with vast sums of money.”

‘That is insane’

Newer drivers driving their own vehicle, in particular, face higher costs. 

Senator Jennifer Murnane O’Connor told the Seanad in June: “Many of us have stories of our own or have heard stories about the rising cost of insurance.

This week, I heard about a taxi driver who had been driving as a named driver on his company fleet insurance. He had his test and wanted to get a policy in his own name. He was quoted €11,000 in respect of a vehicle that is valued at €12,000. That is insane.

In a statement to TheJournal.ie, a spokesperson for industry group Insurance Ireland said it couldn’t comment on individual cases, but added that “insurers make decisions on insurance cover based on their underwriting criteria, their risk appetite and their claims history”. 

“This will include factors such as the driver’s experience, the type of vehicle, its engine size and its age, but the weighting applied to each factor is a matter for each company,” it said. 

Insurance Ireland pointed to the recent report from the Personal Injuries Commission which found that the average compensation issues for soft tissue injuries in Ireland is four times higher than in the UK. 

“Insurance Ireland has been very active in advocating for policies to address the cost of claims in the market that affect all motorists and will continue to press for the swift implementation of the recommendations of the Personal Injuries Commission,” it added. 

With reporting from Cianan Brennan

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    Mute gary kelly
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    Oct 23rd 2015, 8:24 PM

    The man has had nearly every Victorias secret model going. He deserves an Oscar for that alone.LEGEND!!!!

    268
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    Mute Mick
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    Oct 23rd 2015, 8:46 PM

    He was fantastic in Blood Diamond. If Denzel got one for Training Day then Leonardo Di Caprio deserves several.

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    Mute Mark Ryan
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    Oct 23rd 2015, 8:51 PM

    well said.. Training day was absolute drivel…… But it wasn’t the acting densel got it for that year which is a shame, as it tarnishes his award….

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    Mute Richard Cynical
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    Oct 24th 2015, 7:37 AM

    just give the man an Oscar

    18
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    Mute gordon kennedy
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    Oct 23rd 2015, 8:27 PM

    Should have got the gong for django.. He was immense in that..

    154
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    Mute Karol Doran
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    Oct 23rd 2015, 9:33 PM

    He stole the show. Incredible performance.

    61
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    Mute Supernova
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    Oct 23rd 2015, 8:18 PM

    How he hasn’t got an Oscar yet is beyond me, he should be in with a shout out his year with this film look epic. Watched beasts of no nation on Netflix last night, and the supporting actor, just a kid (Abraham attah) deserves an Oscar for his performance, best child acting I’ve ever seen.

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    Mute Margaret Daly
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    Oct 23rd 2015, 8:26 PM

    last one seen shutter island. brilliant!

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    Mute mike litoris
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    Oct 23rd 2015, 8:29 PM

    He should have got an Oscar for basketball diaries.

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    Mute Alan O'Driscoll
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    Oct 23rd 2015, 8:34 PM

    What film would ya give him the oscar for though? Whilst I love pretty much all of his work, I don’t think I’ve seen him in a quintessential Oscar role until this one.

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    Mute Deborah Behan
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    Oct 23rd 2015, 8:36 PM

    He should have got one for Wolf of Wall Street, epic film.

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    Mute Supernova
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    Oct 23rd 2015, 8:41 PM

    he studied the YouTube video of “the drunkest man in the world” before doing the drunk/drug drinking scene lol

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    Mute Alan O'Driscoll
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    Oct 23rd 2015, 8:42 PM

    Yeah, immense film but not really an oscar performance. His performance in that is never gonna be better than the McConaissance in Dallas Buyers club.

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    Mute Karol Doran
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    Oct 23rd 2015, 9:35 PM

    He should have gotten best supporting oscar for his role in Django Unchained.

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    Mute Colm Connolly
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    Oct 23rd 2015, 11:43 PM

    no Christopher waltz fulles deserved his oscar from the same movie

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    Mute Alan Walsh
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    Oct 23rd 2015, 8:11 PM

    It looks claaaaaaaass

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    Mute Beachmaster
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    Oct 23rd 2015, 8:29 PM

    Jesus, give him an Oscar before he does something silly.

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    Mute Jamsey
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    Oct 23rd 2015, 8:34 PM

    Before??? Did you read the article?? The lad has gone full “Daniel Day Lewis”….

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    Mute Eamonn Connaghan
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    Oct 23rd 2015, 9:08 PM

    Never, ever, go full Daniel day Lewis.

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    Mute ChocSaltyBallz
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    Oct 24th 2015, 12:51 AM

    ain’t nottin but a ting ain’t nottin but a ting

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    Mute Eugene Walsh
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    Oct 23rd 2015, 9:04 PM

    Should a got ozzie for this boys life . A mediocre movie but his acting at that age alongside De Niro and the kicking De Niro gave him was pretty intense

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    Mute burner
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    Oct 23rd 2015, 8:32 PM

    ditto for wolf of wall street

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    Mute John Collins
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    Oct 23rd 2015, 8:33 PM

    He should have gotten the Oscar for Revolutionary Road and Django Unchained. Also, eating bison liver isn’t a big deal.

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    Mute Pedro Brasco
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    Oct 24th 2015, 9:00 AM

    Ya but eating raw bison liver is a big deal.

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    Mute TellingItAsItIs
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    Oct 23rd 2015, 8:26 PM

    The poor divil! I sincerely hope his wage helps dull this dreadfully traumatic experience.

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    Mute Declan O'meara
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    Oct 23rd 2015, 11:32 PM

    Had the pleasure of meeting him once in new York city , very down to earth guy and no bull shit out of him either , very witty

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    Mute .
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    Oct 23rd 2015, 8:13 PM

    He should try acting

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    Mute mike litoris
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    Oct 23rd 2015, 8:51 PM

    When he’s finished riding his supermodel girlfriend on a private yacht,hopefully he’ll take the time to log into the journal and read your comment. That will get his motivation for success going.

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    Mute Padraig Piarais Mac AnTsaoir
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    Oct 23rd 2015, 9:16 PM

    Mike, if you were here, I would munch on you till dawn.

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    Mute Alan O'connor
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    Oct 23rd 2015, 8:42 PM

    Inarittu is a total fraud. 21 Grams, Babel, Birdman. The emperor wearing absolutely no clothes. I suspect this will be drivel as well. I like DiCaprio but his quality control is gone to the dogs lately.

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    Mute Karol Doran
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    Oct 23rd 2015, 9:37 PM

    Nonsense. I can’t remember him ever doing a poor movie. He produces non stop quality performances.

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    Mute William Boyd
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    Oct 23rd 2015, 10:27 PM

    Have to agree with Alan about the director a bit like that Wes Anderson another emperor with no clothes.

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    Mute Paddy
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    Oct 23rd 2015, 11:49 PM

    I like the grand Budapest hotel in fairness.

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    Mute William Boyd
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    Oct 24th 2015, 12:18 AM

    From a personal perspective Paddy for me it was like pulling teeth with a pliers without anesthetic.

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    Mute Gary Kennedy
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    Oct 23rd 2015, 8:13 PM

    Anything for an Oscar

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    Mute Neil Cash
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    Oct 24th 2015, 9:58 AM

    I know a lot of jokes are made about Leo’s failures at Oscar level but regardless he does have one of the most impressive backlog of film around – this looks to continue that with this. I really like him and hope this gets him the Oscar nod

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    Mute Paul Roche
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    Oct 23rd 2015, 8:29 PM

    Dances With Bears?

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    Mute M
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    Oct 24th 2015, 7:28 AM

    Fassbender as Jobs willl be a condender too, he looks like he nails the role

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    Mute Kate Reddin
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    Oct 24th 2015, 9:01 AM

    He was nominared for best supporting actor in “whats eating gilbert grape”. He should have won for definate but didn’t and that was 20 years ago. He is constantly snubbed at the oscars so they must have a problem with him. The only film he wasn’t amazing in was titanic and I don’t blame him for that

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    Mute Robert Allen
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    Oct 24th 2015, 8:32 AM

    Superb actor

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    Mute Michael Sands
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    Oct 24th 2015, 10:32 PM

    Is he mad?

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