Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates. He has also been featured on sites like UpJourney.

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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 exis...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jun 1, 2020

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Things to remember...

  • Auto insurance for taxi cabs 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
  • Auto insurance for taxi cabs averages between $416.66 and $833.33/mo.

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 companies with only a few cars. Regardless of which type you belong to, you’ll likely need a special type of commercial auto insurance.

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

How Auto Insurance for Taxi Cabs Works

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

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.

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.

Other places aren’t usually as low as Pennsylvania. For instance, taxi insurance in New Jersey will need a minimum amount of liability of 50/100/25. That translates to:

  • $50,000 for the death or injury of one person per accident
  • $100,000 for the total deaths or injuries of occupants per accident
  • $25,000 to cover property damage

It absolutely depends on where you live. If you’re looking for 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.

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.

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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.

How much is insurance for a taxi company? The National Academies of Sciences, Engineering, and Medicine reports what the average auto insurance rates paid for taxicabs were. 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 insurance so expensive? There’s just so much that could happen to a very frequently used vehicle. The chances of damage to the taxi are way higher than a typical personal vehicle.

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.
A lot of taxi business has been taken away by rideshare services.

Can any car be a taxi? Services like Uber, Lyft, and Via have become super popular. If taxi drivers need special insurance, do Uber drivers need special insurance? They are supposed to have additional rideshare coverage, and their personal insurance won’t cover damages that happen when they’re driving on the job

Here’s the RideShareGuy talking about the difference between standard commercial 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.

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Commercial Taxi Cab Auto Insurance

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.

This video from WYNC shows a taxi cab driver in New York City talking about what his day is like.

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 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
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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 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

Taxi insurance in 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 livery 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.

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How Taxi Auto Insurance is Different From Personal Auto Insurance

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. notes that 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 auto insurance for taxi cabs rates is to enter your ZIP code below and compare.