Chicago Taxi And Limousine Insurance Legal Requirements May Differ From The Actual Needs
Searching for commercial vehicle protection is a major requirement for any person or company looking to invest in the paratransit and public transportation business. When it comes to evaluating taxi and limousine insurance quotes, there are a number of tips you can adopt that will help in obtaining the best coverage for your business at the most competitive rate. Adhering to these primary steps will aid you in accomplishing your aim.
Before any person or business can embark on the process of comparing quotes, it is critical to ascertain what your organizations usually requires in relation to protection.
Public Transportation Liability
This is a mandatory coverage that will need to be retained on all autos. In Chicago, the minimum limits of auto liability required by the City to allow paratransit, taxi and Limos is $350,000 Combined Single Limit, Each Occurrence. Other suburban towns may ask for more or less insurance. Most surrounding suburbs ask for a minimum of $250,000 Combined Single Limit, Each Occurrence.
A self employed taxi or limo owner may not take liability limits as critical as someone else with a fleet of taxi or limo vehicles. The amounts of business assets to be protected are not the same. A business owner of 10 taxi cabs with 10 medallions may be risking a total assets of $3 to $4 million; as opposed to $200,000; more or less; for a business owner of 1 medallion. For this reason, limits of liability is greatly more significant to the owners of fleets.
As indicated earlier, the minimum limits of insurance in the City of Chicago for most public transportations including paratransit, taxis and limos is set at $350,000. In 1995, an Illinois woman won $5.2 million in a lawsuit against Yellow Cab in connection with brain injury she suffered in a car accident. Insufficient coverage can bring very unpleasant experiences to fleet owners.
Comprehensive and Collision
This is to give you insurance for the vehicles in the event of collision, fire, theft and other losses to the autos. This coverage costs between 4 to 5 percent, of the value of the autos; yearly. Most taxi/limo owners keep away from buying this coverage because insurance providers do not valuate their vehicles high enough, due to excessive mileage on these taxi/limo vehicles.
Another essential need for taxi/limo owners is <a href="http://www.insurancenavy.com">workers compensation for taxi drivers</a>. Small business owners and independent contractors doing business as taxi or limo operators may find different methods to exempt themselves from this legally necessary but relatively high priced coverage, but those who hire drivers and office staff are ruled by law to have it.
Commercial Property & Liability
Tax and limousine fleet entrepreneurs may also find themselves in the position to carry certain property and commercial general liability coverage to ensure their office fixture, dispatching electronics and equipment, computers, signs, money, crime, etc. Larger businesses see this coverage more vital than smaller businesses or one man ventures.
- Evaluate Rates and Coverages
There are limited number of insurance companies in the Chicago area that offer taxi or limo insurance at affordable rates. For that reason the search is not as daunting as it sounds. However, business owners need to work with an independent insurance broker who understands the rules concerning insurance liability certificates for taxi in Chicago. When starting the search for <a href="http://www.insurancenavy.com">taxi or limousine insurance quotes</a>, it is important to take advantage of contacting a few independent agents that will provide you with that coverage. When your rate estimates are received, make sure to analyze their prices against the coverage that they offer your company. On occasion paying a little extra in your rates can vastly improve the quality of your insurance.
The key discount that taxi and limo insurers may offer are discounts offered for having no previous losses. Discount amounts can be considerable for medium to large size taxi businesses, where yearly premiums may be well over 1 or 2 million dollars just for auto liability. A customer asking an insurance agent to give back a percentage of commission to customers is categorized as rebating, and is strictly illegal. Both the agent and the customer can be subject to serious penalties if rebating takes place. Finally, limousine and Taxi businesses may have to pay excess money if they employ young operators, or if they employ operators with bad driving records.