taxi drivers service areas day in and day out, helping cities run smoothly and getting people where they need to be.
they are unsung heroes of virtually any downtown area. but in their continuous service, taxi drivers face many threats on the road. this is where taxi insurance can help.
Reading: How much does taxi insurance cost
taxi insurance provides taxi drivers and their customers with coverage after a collision. is an incredibly important type of auto insurance.
Accidents can not only be deadly but costly because if you don’t have coverage, you’ll have to pay out of pocket. insurance can help with expenses and liability claims.
what is taxi insurance?
Taxi insurance, also known as rental car insurance, is a type of commercial auto insurance that provides protection for vehicles used by businesses to transport people.
Transportation is often part of their business model and generates income. they depend on their taxi for profit.
taxi insurance protects drivers, vehicles and passengers in the event of an accident. Insurance coverage can also be extended to provide protection for your taxi against damage and theft along with personal injury for you and your customer(s).
Being a taxi driver carries a variety of risks and it is important to try to prepare for them. that’s where insurance comes in to help.
types of taxi insurance
There are two different types of taxi insurance you’ll find when looking for a taxi policy. the type you are in will affect your insurance premiums and coverage requirements. the two types are:
private hire taxi insurance
Private hire taxis are taxis that people must reserve before traveling. They cannot be flagged, nor do they advertise that they are a taxi. you must set a pickup time.
public hire taxi insurance
on the other hand, public hire taxis are practically any taxi you see driving around a city. people can say hello to you and use your services right away. they also display taxi signs. public hire taxis generally have different insurance requirements than private hire taxis.
do all taxi drivers need insurance?
yes, they need taxi insurance by law. taxis and their drivers face countless risks every day they hit the road. Not to mention, driving a cab without insurance is illegal in every state.
If you operate a taxi company or are a taxi driver, you need taxi insurance. It will help keep you protected in the event of a collision. can also provide you with liability coverage along with other types of insurance, such as property damage and medical.
Driving without coverage is incredibly risky, as well as incredibly illegal. you don’t want to be on the hook for damages if you drive without insurance.
commercial operations covered by taxi insurance
the word taxi can have several meanings for companies. It’s not always the flashy yellow cars you see in city centers.
Different vehicles get people where they need to go, which means they most likely need taxi insurance coverage. some examples may include:
- rental transport
- black cat
- partial rideshare services (uber, lyft, etc.)
- executive transportation
- 25 and older: If you are under 25, it may be difficult to obtain taxi insurance. the same barriers may exist if you are over 65.
- vehicle age: Older vehicles are less likely to be insured.
- area of operation: taxi insurance covers only a certain area. if you operate outside designated areas, you may not be covered in the event of an accident. States and cities also have their own taxi insurance requirements.
- driver record: Not only your age will come into play, but also your criminal record. If he has been convicted of a felony (eg, driving under the influence, vehicular manslaughter, etc.), he will have difficulty obtaining taxi insurance coverage.
- Years in business – How long your taxi business has been established will affect your car insurance rates. the newer you are in the industry, the higher your premiums can be.
- Location – Where you operate will have a big effect on your auto insurance premiums. if the area is densely populated, your chances of getting into an accident increase, which in turn can increase your rates.
- Coverage limits: The amount of auto insurance you want will definitely affect your rates. the more coverage you buy, the more you pay annually.
- Age of Vehicles – As mentioned above, an older commercial vehicle may have a hard time getting auto insurance, and if they do eventually, your rates may go up.
- type of taxi insurance: Whether you need public or private rental, the rental taxi insurance will determine your rates. publicly hired taxis tend to have higher premiums.
- experience: You and your driving history on the road will be taken into account. The less time you spend behind the wheel, the higher your car insurance rates will be. on the other hand, if you have a long track record but a poor track record, your rates could go up.
- Discounts – Your auto insurance provider may offer a number of discounts on your premiums. For example, if you pay your annual insurance premium in one lump sum at the beginning of the policy period, you may receive a discount.
- Check: Always get quotes and review policies from a wide variety of auto insurance companies. searching both nationally and locally can help you find the best rates for your taxi.
- good driving record: Being a smart and safe taxi driver while hiring safe drivers can help you keep your auto insurance premiums low. Please note that each claim will increase your rates.
- adjust your deductible: The higher your deductible, the lower your auto insurance rates. But it’s important to remember that this means you promise to pay more out of pocket in the event of a claim. Increasing your policy deductible just for a lower auto insurance premium may not be worth it after a claim.
what does taxi insurance cover?
The coverage offered by taxi insurance is not very different from that offered by other commercial or personal auto insurance policies.
taxi insurance offers the following types of coverage:
civil liability insurance
Liability insurance covers coverage for any property damage and bodily injury you cause to another driver(s) in an accident. Medical expenses from a taxi accident can be very expensive and liability insurance will cover them. It can also help with legal fees in case the other party sues you.
This type of coverage pays for damage to your cabin after an accident. it is paid no matter who was at fault.
all risk insurance
Comprehensive insurance covers damage to your cabin sustained in a non-collision incident. this includes instances such as extreme weather conditions, fires, and theft.
uninsured/underinsured motorist coverage
If you end up in an accident with a driver who doesn’t have liability insurance, uninsured or underinsured motorist coverage helps cover medical bills and car repairs for your cab.
personal injury protection (pip)
Personal Injury Protection (PIP) pays for medical expenses and lost wages that you and your passengers accumulate after an accident in your cabin.
After reviewing the list above, you may be wondering why you can’t just buy personal auto insurance to get the same coverage. the problem lies in the limits of coverage and protection for business operations. personal cars do not work like taxis. how to use a personal vehicle as a taxi will be covered in a later section.
requirements for taxi insurance coverage
To take out insurance as a taxi driver you will have to meet a series of requirements. if you don’t meet them, you will most likely not get coverage, or at least have higher premiums. taxi insurance requirements are:
how much does taxi insurance cost?
taxi insurance can easily be some of the most expensive insurance you’ll find, exceeding the average cost of commercial auto insurance.
On average, taxi insurance can cost between $5,000 and $10,000 a year. That works out to a monthly rate of $417 to $833. Since taxis spend so much time on the road, your risk of a collision is higher, which increases your insurability risk. they also deal a lot with the public, which means injury claims are more likely to occur.
What you pay for taxi insurance is determined by a number of personal factors. Auto insurance companies look at you, your drivers (if any), your cab, the mileage traveled, and your business as a whole to determine the cost of annual rates.
Some things that influence the cost of your taxi insurance premiums include:
find cheaper taxi insurance rates for your taxi
Because a taxi insurance policy can become very expensive very quickly, you may be looking for ways to lower your taxi fares.
Fortunately, there are a number of steps you can take to lower your auto insurance premiums. some of these are instant, while others gradually reduce fees or simply keep prices lower.
You can find cheap taxi insurance coverage by looking at the following:
use of personal vehicle for your taxi business
it is possible to use your personal vehicle for your taxi service; just make sure you understand the laws and regulations of a taxi driver in the area. some states do not allow the use of personal automobiles for taxi service, while others do.
If you are in an area where it is legal, you will need to make sure you purchase a taxi insurance policy. A personal auto insurance policy will not be enough to protect you since you are now operating as a business. you need the higher coverage and specific protection offered by this type of business insurance.
other types of insurance for your taxi business
Your taxi service is not fully protected just because you purchased a taxi insurance policy. Operating as a driver comes with other responsibilities, especially if you own a business. you want to make sure you have all aspects of your business covered. Other types of taxi services with insurance that you should consider purchasing include options such as:
Workers’ compensation is key to any business, especially one that employs drivers and relies on them for income. Workers’ compensation will help pay for medical expenses if your driver is injured on the job. it also provides a reduced salary for when they are home recovering.
civil liability insurance for labor practices
This type of liability insurance protects you as a taxi service operator if you are accused of something like discrimination or wrongful termination. helps pay for the legal fees that follow.
business interruption insurance
If tragedy strikes your business and you need to close your doors for a period of time, business interruption insurance will help cover lost wages and reimburse you until you’re ready to operate again.
commercial property coverage
This is important insurance if you operate your taxi service from a garage. will help protect your business property in the event of a disaster, such as fire or vandalism.
get a taxi insurance quote today
Looking for a taxi insurance policy at a low price? Contact us today to get a free taxi insurance quote.
Be sure to tell us your zip code, your business details and your taxi(s) information. By providing all of this to us, we can get a better idea of the coverage you need.
Quotes are available at one of our many locations or online with just a few clicks through our website and mobile app. our customer service representatives are also just a phone call away, save time and money with marine insurance. get your taxi insured today and drive carefree tomorrow.
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