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Car Insurance for Taxi Cabs

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Things to remember...

  • Taxi cab insurance is required for those who wish to operate this type of professional transportation service
  • Taxi insurance can be very costly and comes with unique rules and requirements
  • Stringent rules exist in order to qualify for taxi insurance

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

An entrepreneur may simply own one car 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.

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.

Purchasing a specific policy designed for taxi cab insurance can be done and should be done only after carefully exploring a variety of quotes. Compare quotes today by entering your zip code into our free comparison tool.

A reliable 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.

Taxi Cab Insurance Equals Commercial Auto Insurance

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Any insurance purchased for a car primarily used for business falls under the category of commercial auto insurance. A standard car 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 auto insurance, but a taxi policy would be far more involved. Taxi cabs come with more risks.

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

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

New York City takes insurance issues related to taxi cabs so seriously, the NYC Taxi & Limousine Commission allows for the requesting of vehicle insurance information for the public.

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.

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Aspects of Taxi Insurance

The rules and requirements for taxi insurance do vary. In certain regions, those requirements are consistently changed. 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 any incident.” Those are very low amounts, amounts much lower than what would be found in other regions.

Taxi cab 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.

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 driving a taxi to lead to being bankrupted. 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.

Taxi insurance must cover a number of different liabilities including:

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 loss of use.

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.

The Unique Aspects of Taxi Insurance

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A non-commercial driver has a bit more freedom when it comes to acquiring insurance. Those seeking insurance coverage, however, have a higher bar they must reach.

Certain rules exist for taxi professionals. Drivers are required to meet certain conditions in order to be approved for coverage.

Anyone who does not meet those conditions cannot receive taxi insurance. No one has a right to be employed as a taxi driver. 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. A person over the age of 65.

Drivers over the age of 65 could still be approved for insurance coverage, but they will be required to take a medical examination.

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.

Consider that a major reason to follow all traffic laws at all times. Insurance coverage may hang in the balance.

Not everyone may have a perfect driving record, but some people do. No matter what a driving record may look like, steps should be taken to find the best possible coverage. The first step to finding better coverage at better rates is to enter your zip code below and compare!

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