Taxi Insurance

Taxi cab drivers help cities run smoothly by getting people where they need to be.

They are unsung heroes of any downtown area. But in their continuous service, taxi cab drivers face many threats on the road. This is where taxi insurance can help.

Taxi insurance provides taxi drivers and their customers with coverage following a collision. It is an essential type of auto insurance to have.

Accidents can be deadly and pricey because if you lack coverage, you will be paying out of pocket. Insurance can then help with expenses and liability claims.

What is Taxi Insurance?

Taxi insurance, also known as for-hire livery insurance, is a type of commercial auto insurance that protects vehicles used by companies to transport people.

Transportation is usually part of their business model and generates income. They rely on their taxi cab for profit.

Taxi insurance protects drivers, vehicles, and passengers in an accident. Insurance coverage can also be expanded to protect your taxi cab against damage, theft, and personal injury for you and your customer(s).

Being a taxi driver comes with various risks, and trying to prepare for them is essential. That is where insurance comes in to help.

Taxi Insurance Types

You will encounter two types of taxi insurance when shopping around for a taxi cab policy. Which type you fall under will impact your insurance premiums and coverage requirements. The two types are:

Private-Hire Taxi Insurance

Private-hire taxis are taxis that individuals must book before traveling. They cannot be flagged down, nor do they advertise that they are a taxi. You must set up a pick-up time.

Public-Hire Taxi Insurance

On the other hand, public-hire taxis are any taxi you see cruising around a city. Individuals can wave one down and use their services immediately. They also famously 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 that driving a cab without insurance is illegal in every state.

You need commercial auto insurance if you operate a taxi business or are a cab driver. It will help keep you protected in the event of a collision. It can also provide you with liability coverage and other types of insurance, like those for property damage and medical expenses.

Driving without coverage is a hazardous thing to do, not to mention highly illegal. You do not want to be on the hook for damages if you drive uninsured.

Types of Business Operations Covered

Various vehicles get people where they need to go, thus meaning they most likely need car insurance coverage for their taxi. Some examples may include:

• Taxis
• For-hire transportation
• Limos
• Black cat
• Shuttles
• Partial rideshare services (Uber and Lyft)
• Executive transportation

What Does Taxi Insurance Cover?

The insurance coverage offered to taxi drivers is similar to that provided by other commercial or personal auto insurance policies.

Taxi insurance offers the following types of coverage:

Liability Insurance

Liability insurance covers any property damage and bodily injuries you cause to another driver(s) in an accident. Medical expenses for a cab accident can be costly, and liability insurance will cover them. It can also help with legal fees should the other party sue you.

Collision Insurance

This type of coverage pays for damage to your cab following an accident. Collision insurance pays out claims regardless of who was at fault.

Comprehensive Insurance

Comprehensive insurance covers damage to your cab sustained in a non-collision-related incident. This includes instances such as extreme weather, fire, and theft.

Uninsured and Underinsured Motorist Coverage

Suppose you have an accident with a driver who lacks liability insurance. In that case, uninsured/underinsured motorist coverage helps cover your cab’s medical expenses and auto repairs.

Personal Injury Protection (PIP)

Personal injury protection (PIP) pays for medical expenses and lost wages you and your passengers accumulate following an accident in your cab.

After analyzing the list above, you may wonder why you cannot purchase personal auto insurance to get the same coverage. The issue lies in coverage limits and protection for business operations. Private cars do not function as taxis do.

Insurance Requirements For Taxi Policies

You will have to meet several requirements to get insurance as a taxi driver. Please meet them to ensure you get coverage and, at the very least, have higher premiums. Taxi policy requirements are:

• 25 and older - If you are under 25, you may need help getting taxi insurance. The same barriers may exist if you are over the age of 65.
• Age of vehicle - Older vehicles are less likely to get insured.
• Area of operation - Taxi insurance covers only a specific area. If you operate outside the designated zones, you may not be covered in an accident. States and cities also have their own insurance requirements for cabs.
• Driver background - Not only will your age come into play, but also your criminal history. Suppose you have been convicted of a serious offense (Driving under the influence or vehicular manslaughter). In that case, you will have difficulty getting insurance coverage.

How Much Does Taxi Cab Insurance Cost?

Taxi cab insurance may be some of the most expensive, exceeding the average cost of commercial auto insurance.

Insurance for a taxi company can cost anywhere from $5,000 to $10,000 annually. That comes out to a monthly rate of $417 to $833. Since taxi cabs spend much time on the road, their collision risk increases their insurability risk. They also deal with the public a lot, meaning injury claims have more of a chance of happening.

What you pay for taxi cab insurance is determined by several personal factors on your insurance application. Auto Insurance companies look at you, your drivers (if any), your cab, mileage driven, and your business to determine the cost of annual rates.

Some things that influence the cost of your cab insurance premiums include:

• Years in business - How long will your established cab business impact your auto insurance rates? The newer you are to the industry, your premiums may be higher.
• Location - Where you operate will significantly affect your auto insurance premiums. If the area is densely populated, your chances of getting into an accident increase, which can raise your rates.
• Coverage limits - How much auto insurance you want will affect your rates. The more coverage you purchase, the more you will be paying annually.
• Age of vehicles - An older commercial vehicle may be more difficult to get auto insurance. Rates may be increased on an older vehicle.
• Type of insurance coverage - Whether you need public hire or private, hire taxi insurance will determine your rates. Public-hire taxis tend to see higher premiums.
• Experience - Your driving history will be taken into consideration. The less time behind the wheel, the more your auto insurance rates will be. On the other hand, if you have a long history but a poor record, your rates could increase.

Find Cheaper Rates on Insurance coverage for your cab

Since a taxi policy can get very pricey quickly, you may be hunting for ways to lower your rates for your cab.

Thankfully, there are several steps you can take to lower your auto insurance premiums. Some are instant, while others gradually decrease rates or keep prices lower.

You can find cheap business insurance for your cab by looking into the following:

• Discounts - Your auto insurance provider may offer several 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.
• Shop around - Always get quotes and analyze policies from various auto insurance companies. Looking nationally and locally can help you find the best rates for your cab.
• Good driving record - Being a smart and safe cab driver while hiring safe drivers can help keep your auto insurance premiums low. Keep in mind that every claim will increase your rates.
• Adjust deductible - The higher your deductible, the lower your auto insurance rates. But it is important to remember that this means you promise to pay more out of pocket in case of a claim. Increasing your policy deductible just for a lower auto insurance premium may not be worth it following a claim.

Get a Taxi Insurance Quote Online

Are you looking for a taxi insurance policy at a low price? Contact us today to get a free taxi insurance quote.

Make sure you let us know your zip code, details of your business, and information on your taxis. By providing us with all this, we can better understand the coverage you need.

Quotes are available either at one of our many locations or online in just a few clicks via our website and mobile app. Our Customer care representatives are just one phone call away, saving time and money with Insurance Navy. Get your cab insured today and drive worry-free tomorrow.

Taxi Insurance may only be available in some states; please call an insurance agent for more information on Taxi Insurance Policies. *