Auto Insurance for Taxi Cabs [2021 Update + Rates]

Auto insurance for taxi cabs can be very costly and comes with unique rules and requirements. Taxicab car insurance averages between $416-$833/mo, and drivers commonly carry a minimum of 300/100 for bodily injury and property coverage. Auto insurance rates for taxi cabs can vary depending on if you get a commercial auto insurance policy and hire drivers versus using your personal auto insurance policy.

Free Auto Insurance Comparison

 Secured with SHA-256 Encryption

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

Full Bio →

Written by

Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like and Safeco. He reviews content, ensuring that ex...

Full Bio →

Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Dec 20, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Things to remember...

  • Auto insurance for taxi cabs is required for those who wish to operate a professional transportation service.
  • Car insurance for taxi cabs averages between $416.66 and $833.33/mo.
  • Taxi insurance rates and coverages can vary depending on if you get a commercial auto insurance policy and hire drivers versus using your personal auto insurance policy.
  • Taxi insurance can be very costly and comes with unique rules, requirements, and coverages recommended beyond the minimum requirements in each state.

Driving a taxi cab can be a very rewarding and even lucrative experience. Not all cab services are big businesses with a huge fleet. There are smaller taxi companies with only a few cars.

Regardless of which type you belong to, you’ll need much more coverage than the minimum car insurance requirements in your state for your taxi.

Purchasing a specific policy designed for affordable auto insurance for taxi cabs can be done and should be done only after carefully exploring a variety of quotes.

Compare quotes today for cheap taxi insurance by entering your zip code into our free comparison tool.

How Is Commercial Auto Insurance For a Taxi Cab Driver Different Than Personal Insurance?

A non-commercial driver has a bit more freedom when it comes to acquiring their personal insurance. Those seeking commercial auto insurance, however, have a higher bar they must reach and it can be harder to find a competitive rate.

Certain rules exist for anyone in the taxi business. Drivers are required to meet certain conditions in order to be approved for commercial insurance coverage. Proper coverage is not a choice for a taxi professional, it’s imperative that they meet at least the minimum requirement to be able to provide their taxi service.

Anyone who does not meet those conditions cannot receive taxi insurance coverage. No one has a right to be employed as a taxi driver without meeting the taxi insurance requirement. That is just the way the law works.

Age requirements are also in place. The driver must be a minimum of 25 years old and standard approval for coverage is cut off at 65. This may vary by insurance carrier.

Drivers over the age of 65 could still be approved for insurance coverage, but they will be required to take a medical examination before they’re given a taxi insurance quote. This is because the auto insurance company understands that there is a higher insurance risk for these drivers.

Infractions on a taxi driver’s record can do more than increase his or her premiums. After a certain threshold is met, then the driver becomes absolutely ineligible for any type of insurance to drive any type of taxi.

Consider that a major reason to follow all traffic laws at all times. Not only will a spotless record guarantee you the lowest premium, but your insurance coverage may also hang in the balance.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Why should I get commercial insurance for my taxi/cab?

If you or your company owns a commercial taxi, it is required by law to purchase at least a third-party liability only policy.

This protects your company financially, maintains your profit margin, and reduces downtime in the event that your taxi causes damage or losses to a third-party property, individual, or car.

Businesses are vulnerable to risks in general, and if you have a large fleet of taxis, the risk is increased.

As such, purchasing a regular or comprehensive package policy for your taxis or cabs is a wise decision, as it will shield your commercial taxi and the owner-driver from any damages caused by natural calamities, injuries, terrorist attacks, fires, and other events.

What Does Commercial Taxi Insurance Cost For The Average Taxi Company?

The National Academies of Sciences, Engineering, and Medicine reports what the average auto insurance cost for taxicabs was. In 2013, the average was, per cab:

  • $5,632- fleets of less than 25 vehicles.
  • $6,475- fleets of 25 to 99 vehicles
  • $8,192- fleets with 100+ vehicles

Why Is Taxi Auto Insurance So Expensive?

There’s just so much that could happen to a very frequently used vehicle and this type of insurance very much reflects that risk. The more your vehicle is out on the road, the less likely it is that you will be able to protect your vehicle against damage; the same is true of your personal vehicle if you have a longer commute.

With added business interruption coverage, money may be paid out when a taxi is not on the road. So, if the vehicle is involved in an accident and off the road for five days, loss of revenues might be procurable in whole or part for those five days. Taxi auto insurance is not a typical insurance solution you’d see for any type of vehicle. Instead, a commercial taxi insurance carrier is going to have the specialized knowledge to create quality insurance products that will meet the needs of your business.

When you connect with a specialized insurance agent and get so much more than standard commercial auto liability with your taxi auto insurance, you won’t dread the fact that you have to purchase insurance anymore. Instead, you will know that your taxi insurance premium is well worth the service you’re getting.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

How Does Taxi Insurance Coverage Work?

An entrepreneur may simply own one taxi and pick up fares on a full-time or part-time basis. In a lot of ways, driving a cab is like driving a normal car, but you need different auto insurance for your business car.

What is the average day like for a NY taxi driver?

Just as a regular driver would take friends or family to destinations, a cab driver brings his/her fares to their destination for a fee.

As is the case with a standard car, a taxi cab needs insurance. Actually, a taxi can require special and more comprehensive insurance.

A reliable and affordable taxi insurance policy could keep a driver or company in a very safe place if an accident occurs. Getting the best policy should always be a major priority.

The United States Bureau of Labor Statistics reported that there were 50,250 taxi and limousine drivers in the U.S. in 2019.

Taxi and Limousine Driver Population and Wages in the United States
Taxi and Limousine
Driver Statistics
Employed drivers50,250
Average hourly wage$15.14
Average yearly earnings$31,490
Get Your Rates Quote Now

Compare RatesStart Now →

All those taxis need coverage. What insurance do you need for a taxi?

Any insurance purchased for a car primarily used for business falls under the category of commercial auto insurance. A standard auto insurance policy won’t cut it when using a car for business operations. Such a policy would simply be invalid.

Business can be conducted in a vehicle in many ways. Policies have to match the business endeavor.

A car provided to employees who drive to meet clients for sales jobs would require commercial car insurance, but a taxi policy would be far more involved. Taxi cabs come with more risks.

The powers-that-be do keep tabs on the following:

  • taxis
  • taxi-related accidents
  • taxi-related insurance claims

Taxi insurance in the state of New York is pretty strict. New York City takes insurance issues related to yellow cabs so seriously, the NYC Taxi & Limousine Commission allows for the requesting of vehicle insurance information for the public. Taxi or limo insurance is required for all delivery drivers.

A driver may be asked to do the following things all at once:

  • travel to an area he or she is not familiar with
  • drive so during rush hour when other drivers on the road are not considerate or careful
  • deal with the annoying distraction of a loud, belligerent passenger

The chances of an accident increase due to the distractions. Driving in the congested sections of the city when scores of people and cars are rushing around could lead to accidents even when the person driving the taxi cab is incredibly safe and careful.

How Do I Purchase Insurance If I Hire Taxi Drivers?

If you would like to hire additional drivers, you can expand into a multi-driver policy so that all of your hired drivers have the same coverage when they are working. A specialized insurance agent can help you find the best taxi insurance company for your business.

Having employees brings greater responsibilities, so a company liability insurance policy would be good to consider. This type of policy will provide coverage for the following instances:

  • claims of sexual harassment
  • claims of discrimination
  • claims of wrongful termination

Speak with your auto insurance provider about expanding your coverage so that you and your employees are protected.

Are There Any Types Of Commercial Taxi Insurance Discount Available?

When gathering quotes from several different auto insurance companies, they may not factor in all available discounts which can make cheaper taxi insurance feel impossible. This isn’t the case! Before you purchase any taxi insurance product, you should call and speak to an agent about any discounts you or your business could be eligible for.

Even though the purpose of your vehicle is the transportation of passengers, some of the same factors are considered to determine your insurance rates.

What if you’ve had a commercial policy before? You can save.

Insurance companies, just like employers, like to see previous experience to make a good judgment of how you will operate your business.

There may be a discount for having previous experience managing and operating a business vehicle or multiple vehicles with a commercial auto insurance policy.

Homeownership and marital status can help you cash in, too.

Just like any other driver, homeownership and being married shows the insurance company that you are a responsible person and therefore less likely to file a claim because you are a safer driver.

This presumption can seem a bit discriminatory, but if it means getting an additional discount, it doesn’t hurt to ask.

Looking to expand into limousine service?

Becoming an executive driver may be a viable alternative for you if you would like to save on commercial auto insurance costs because these policies are cheaper if you are an executive driver or chauffeur/limousine driver.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Can You Use Your Personal Car as a Taxi?

Can any car be a taxi? Many taxi businesses have been taken away by rideshare services.

Services like Uber, Lyft, and Via have become super popular. If taxi drivers need special insurance, do Uber drivers need special insurance?

Rideshare drivers are supposed to have additional rideshare coverage, and their personal insurance won’t cover damages that happen when they’re driving on the job.

Therefore, it’s important to understand the difference between standard commercial auto insurance and rideshare insurance.

Delivery drivers for services such as Instacart and DoorDash are also required to have special insurance. It’s not just professional taxi drivers.

How Does Personal Auto Insurance Work For Taxi Cabs?

The rules and requirements for taxi insurance do vary. In certain regions, those requirements continuously change. What are some taxi cab insurance requirements?

The state of Pennsylvania, amazingly, has not changed its minimum coverage requirements for taxi cabs since 1974. The exact coverage amount is “$15,000 per injured person and $30,000 for all people injured in an incident.”

Those are very low amounts, amounts much lower than what would be found in other regions. Other places aren’t usually as low as Pennsylvania. It absolutely depends on where you live.

Taxicab drivers do need to realize that just because the state minimums are low does not mean it would be wise to buy the lowest amount of coverage.

If you’re looking for cheap taxi insurance in California, Idaho, or any other state, the best place to check is going to be your local government website or insurance provider.

Who knows how bad a situation could turn out to be in the advent of a very serious accident. The idea behind driving a taxi is to make money. The wrong insurance policy could cause a taxi driver to become bankrupt. That is no exaggeration.

Regardless of what the state minimums are, a taxi driver should take steps to look for the best possible coverage that takes into consideration the financial risks one could be exposed to.

In certain regions, the requirements for minimum coverage might be huge. A major city comes with major hazards. Insurance coverage could end up being very costly in such a location. Once again, comparison shopping is critical in order to buy the best insurance at the best rates.

What Are Other Types of Auto Insurance Coverage Taxi Drivers Should Purchase?

Taxi insurance must cover a number of different liabilities including:

  • personal injury protection (PIP)
  • property damage liability
  • medical cost insurance
  • uninsured/ underinsured motorist

These coverages would be common with many other standard auto policies. Certain unique types of coverage exist with taxi insurance.

Accessories insurance is somewhat akin to personal property coverage found in a homeowner’s policy. Accessories insurance could protect against damage or theft to the cab’s meter, dispatch communications system, and more.

One interesting component of coverage would be business interruption coverage. The homeowner’s insurance comparison would be the loss of use of the property.

The first step to finding cheap auto insurance rates for taxi cabs is to enter your ZIP code below and compare.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption