Introduction
E-hailing drivers often face higher insurance premiums compared to private car owners. While this may seem burdensome, the increase is logical because e-hailing drivers face higher risks on the road every day. Understanding the reasons behind these costs helps drivers make smarter insurance choices.
Why E-hailing Insurance Premiums Are Higher
High Risk:
- E-hailing drivers work all day, operate in congested areas, and carry passengers.
- There is a higher likelihood of accidents occurring.
Third-Party Liability:
- In case of an accident, e-hailing drivers may be responsible for passengers or third parties.
- Insurance must cover these costs, which increases premiums.
Higher Claim Frequency:
- Statistics show e-hailing drivers file claims more frequently than private car owners.
- Insurers factor this risk into premium calculations.
Type of Coverage Needed:
- E-hailing drivers usually require LLOP or special add-ons to cover passengers and other commercial risks.
- These specialized policies are typically more expensive than regular private car insurance.
Tips to Reduce Premium Costs
- Compare policy prices through platforms like BJAK to get the best deals.
- Choose coverage limits appropriate to your actual risk.
- Avoid small claims that may affect your NCD.
- Check additional policies and only select those necessary for e-hailing.
Conclusion
E-hailing insurance premiums are higher because drivers bear greater risks compared to private cars. By understanding the cost factors and choosing policies wisely, drivers can protect themselves and passengers without financial strain.
Read More:
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