What Exactly Is Taxi Insurance?
The term “Taxi Insurance” commonly refers to commercial insurance for taxi cabs that transport people every day. Such types of policies are specially designed to provide financial protection to cars for hire, their drivers and fellow passengers. There are potential risks involved in transporting people.
Besides, having a taxi insurance cover also protects the car owner from probability of car theft or any other damages caused to the hired vehicle.
What Are Basic Requirements For Getting A Taxi Vehicle Insurance?
The basic requirements to get auto insurance for taxi cabs could be as mentioned below:
What type of Taxi car Insurance Do I Need If I Hire Drivers?You can list multiple drivers on your taxi vehicle insurance policy. The coverage will remain the same. But since there is a possibility that you will be employing several drivers, it could be desirable to buy employment practices liability coverage as an extra feature. Such a move may grant you complete financial protection against any likely claims for discrimination or termination of services from one of your car fleet drivers. Thus, it gives you total peace of mind in the event of a possible lawsuit.
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Why Is Taxi Insurance So Expensive?
It is hard to get taxi insurance coverage at a price you can easily afford because of the following reasons:
- As compared to normal drivers, taxi drivers are exposed to the risk of meeting with accidents as they spend most of their time on road.
- If your employee hires or borrows a vehicle for his personal use, a business auto insurance quote may not cover the same.
- Since taxi drivers are in business of ferry passengers on a day to day basis, there is high probability of personal injury claims being filed.
What Type Of Auto Insurance For Taxi Cabs Should Be Looking For?
National as well as state driving and insurance laws require drivers to carry at least minimum liability coverage for driving vehicles legally on road. Accordingly, you can think of buying some coverage features as under:
Pays costs for treatment of bodily injuries to others and damages caused to other person’s property by insured car during an accident.
Covers damages to taxi cab resulting because of storm, fire, theft, etc.
Covers taxi driver and fellow cab passengers for treatment of bodily injuries suffered due to an accident.
Coverage pays costs for damages to at-fault driver who is uninsured or underinsured.
Covers all damages caused to taxi cab due to a collision with another car or falling object.
Covers damages caused to taxi cab accessories such as GPS devices, mileage meter, communication equipment, etc.
Important Tips For Getting Commercial Insurance For Taxi Cabs
- Pay entire annual premium in lump sum at one go instead of paying premium monthly. This way you can save money on interests and fees.
- Make sure that your taxi has numerous safety features and you park it in a proper place when not in use. You can get discount.
- Undertake extensive shopping and compare free quotes offered by several different top rated local insurers. Shopping can you to save some extra dollars on premium.
- Inquire whether you are eligible to receive any additional discounts on premium. With a discounted taxi insurance package you can save hundreds of precious dollars.
- For lowering your premium, you can select higher deductible but you need to ensure that you have money to spend if claim amount is high.
FAQs on Taxi insurance
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If your budget is stringent then you can buy state prescribed minimum liability coverage for your taxi cab. But when you have enough money, it is desirable to purchase some extra coverage features for securing comprehensive protection to your finances.
While you can always drive commercial car for personal use, it could be vital for you to know that if your taxi meets with an accident, insurer might not pay costs for treatment of bodily injuries or property damages by other persons if taxi driver is found to be at-fault.
No. You need not buy separate taxi insurance if you are driving cab for rideshare services. But it is advisable to purchase rideshare and gap insurance coverage features.
By law, drivers cannot drive cars legally on road without valid insurance. If you are caught driving taxi uninsured, you may be penalized with huge fines, lose your driver’s license and even be jailed. Besides, you will be liable to pay damages to victims, if cab meets with an accident, on your own.