Cheap Taxi Auto Insurance in 2025 (Unlock Big Savings From These 10 Providers!)

Our top picks for cheap taxi auto insurance are Nationwide, Farmers, and Progressive. Nationwide has the cheapest taxi insurance rates starting at just $75 monthly.

Taxi cab insurance is not like rideshare insurance, which is specifically for people who use their personal vehicles to deliver food or drive for Uber or Lyft, or limo insurance, where the car’s length and value determine rates. Auto insurance rates for taxi cabs are based predominantly on location and annual mileage.

Our Top 10 Company Picks: Cheap Taxi Auto Insurance

Read on to learn more about taxi cab insurance, then compare rates to find the most affordable auto insurance policy possible. Uncover affordable auto insurance rates from the top providers by entering your ZIP code above.

#1 – Nationwide: Top Overall Pick

Pros 

• High Customer Satisfaction: Nationwide Insurance is consistently recommended by its policyholders. Learn more in our Nationwide auto insurance review.
• Affordable Rates: Nationwide Insurance offers competitive rates for drivers with speeding tickets or poor credit, making insurance more accessible to a broader range of customers. 
• User-Based Insurance Programs: Nationwide Insurance stands out for its innovative insurance programs, such as SmartRide and SmartMiles, which offer usage-based and pay-per-mile options, respectively. 

Cons

• Higher Costs for Certain Drivers: Nationwide Insurance has higher-than-average costs for drivers with a DUI on their record, ranking fourth-highest in this category.
• Limited Discount Offerings: Nationwide Insurance did not score well in terms of the variety and extent of discounts offered.

#2 – Farmers: Best for Contractor Equipment 

Pros 

• Specialized Coverage for Contractor Equipment: Farmers Insurance offers unique coverage options for contractor equipment, such as tools and machinery used in a business.
• High Satisfaction with Claims Handling: Most survey respondents express satisfaction with how Farmers Insurance resolves claims, indicating a reliable and efficient claims process.
• Plenty of Discounts: Farmers auto insurance discounts range from policy bundling and safe driving to occupational discounts for certain professions.

Cons

• Mixed Reviews on Roadside Assistance: Farmers Insurance has received customer complaints regarding slow response times for roadside assistance services. 
• Higher Premiums in Certain States: Farmers Insurance premiums can be relatively high in some states compared to other insurers. 

#3 – Progressive: Best for Tight Budgets

Pros

• Affordable Rates: Progressive Insurance offers competitive rates for cab drivers on a budget which you can learn more about in our review of Progressive.
• Gap Insurance for New Car Owners: Progressive Insurance offers gap insurance for new car owners, which can be helpful if you owe more on your car than it’s worth. 
• Vanishing Deductible: Progressive offers a vanishing deductible program, where your deductible reduces over time for every claim-free period.

Cons

• Mixed Reviews on Claim Process: Progressive Insurance received a grade of C for its collision claim process from collision repair experts surveyed by the CRASH Network. 
• Snapshot Program Impact on Rates: The Snapshot program may increase some drivers’ rates if their driving habits are considered risky based on the program’s data collection.

#4 – Liberty Mutual: Best for Policy Customization

Pros 

• Flexible Policy Options: Liberty Mutual offers customizable policy options that allow customers to tailor their coverage based on their specific needs and budget.
• Coverage Options: Liberty Mutual offers a variety of auto policies and add-on coverage options. Learn more about coverage options in our Liberty Mutual auto insurance review.
• Discounts for Young Drivers: Liberty Mutual provides numerous discounts, including many tailored for young drivers. 

Cons

• Higher Premiums: Liberty Mutual Insurance premiums can be relatively high compared to other insurers. 
• Average Customer Satisfaction Ratings: While many customers are satisfied with Liberty Mutual’s service, there is room for improvement in certain areas.

#5 – Geico: Best for Online Convenience

Pros

• User-Friendly Website: Geico Insurance provides a robust website that makes it easy for customers to manage their policies, file claims, and access resources on the go. 
• Specialized Policies and Services: Geico offers non-owner policies for those who don’t own a car but still need insurance and the ability to file SR-22s for those who require proof of financial responsibility. 
• Low Rates for Teen Drivers: Geico offers low rates for parents adding a 16-year-old to their policies. Learn more about Geico’s rates in our Geico auto insurance company review.

Cons

• Gap Insurance Not Offered: Geico Insurance does not offer gap insurance.
• Limited Network of Local Agents: Compared to some other insurers, Geico has a limited network of local agents.

#6 – State Farm: Best for Cheap Rates

Pros 

• Students and Teens Discounts : State Farm Insurance offers good discount opportunities for students and teens.
• Strong Reputation: State Farm has a strong reputation in consumer studies, indicating high levels of customer satisfaction. Wondering about their level of customer service? Find out in our State Farm Company Review
• Top Financial Strength Rating: State Farm has an A++ financial strength rating from A.M. Best, indicating a superior ability to meet its financial obligations. 

Cons

• Mixed Customer Reviews: While many customers are satisfied with their service, others have reported claims handling and customer support issues.
• High Rates: State Farm Insurance premiums can be higher than average for adult drivers.

#7 – Allstate: Best for UBI Program

Pros

• Comprehensive Coverage Options: Allstate Insurance offers the same coverage options for its Allstate Rewards program as regular policies.
• Allstate Rewards Program: Allstate Insurance offers an Allstate Rewards program, through which policyholders can earn points for safe driving and redeem them for various rewards. Read more: Allstate Auto Insurance Company Review
• Ease of Policy Setup: Allstate Insurance has received high marks for the ease of opening a new policy. Its efficient online tools and customer support make the process straightforward. 

Cons

• Below-Average Customer Ratings: Compared to other companies, Allstate Insurance has received below-average ratings for auto insurance shopping satisfaction. 
• Charges Despite Device Malfunction: Some customers reported being charged by Allstate for miles driven when the device for its UBI program malfunctioned.

#8 – Erie Insurance: Best for Youth Discounts

Pros

• Generous Youth Discounts: Erie Insurance offers a variety of discounts for young drivers, such as good student and youth safe driving discounts. Our Erie insurance review explores the company’s affordable coverage and discounts.
• Strong Financial Stability: With an A+ rating from AM Best, Erie Insurance has proven financial stability.
• Easy-to-Navigate Website: Customers have praised the user-friendly website of Erie Insurance, making it easy to access policy information and make changes. 

Cons

• Limited Availability: Erie Insurance is only available in 12 states and Washington D.C.
• Limited Digital Capabilities: While the website is user-friendly, customers have expressed frustration with the limited digital capabilities of Erie Insurance, such as online claim filing. 

#9 – Travelers: Best for Unique Coverage

Pros

• Unique Coverage Options: In addition to standard car insurance coverage, Travelers also offers unique options such as ridesharing and gap insurance. Compare Traveler’s rates with top competitors in our Travelers auto insurance review.
• Convenient Online Claim Filing: Travelers Insurance offers the convenience of filing claims online or through their mobile app, streamlining the process for policyholders. 
• Low Complaint Rates: Travelers Insurance has received fewer customer complaints than expected for auto insurance, indicating higher customer satisfaction.  

Cons

• Doesn’t Offer SR-22 Insurance: Travelers does not offer SR-22 insurance, which is required for high-risk drivers.
• Limited Rideshare Availability: While Travelers offers rideshare insurance, it is not available in all states.

#10 – The Hartford: Best for Exclusive Benefits 

Pros

• Discounted Rates for Members: Hartford offers discounted insurance for AARP members, providing cost-effective coverage options for older adults. Our article, The Hartford Auto Insurance Review, provides more detail about what this provider has to offer.
• New Car Replacement: Hartford offers new car replacement coverage, which replaces a totaled vehicle with a brand new one if it’s less than a year old and has fewer than 15,000 miles.
• Wide Range of Discounts: Hartford provides a wide range of discounts, making it easier for policyholders to save money on their premiums. 

Cons

• Higher-Than-Expected Complaints: Hartford has received more complaints than expected for its auto insurance policies.
• High Rates for Young Drivers: Hartford may have higher rates for young drivers included on a member’s policy.

Auto Insurance Requirements for Taxi Cabs

Like regular car insurance, taxi cab coverage must meet specific requirements. However, states regulate taxi cabs more heavily than insurance for personal vehicles.

Every taxi driver will see different requirements for their insurance based on several factors, including:

• Location: States and cities have different rules for how much insurance a taxi driver needs to carry before they can work. 
• Vehicle: Not all car types can serve as a taxi — some makes and models, along with older cars, might not be acceptable. Learn the difference between car make and car model in our guide.
• Driver: Your age and driving history play an important role in your insurance. Taxi insurance companies reject drivers with too many incidents in their records.

If you’re unsure how much insurance you need, contact your DMV. They can tell you exactly what you need to drive. Alternatively, you can ask your insurance company for more information.

Age Restrictions on Auto Insurance for Taxi Cabs

Insurance companies have different eligibility criteria, but most taxi drivers must be between 25 and 65. Insurance companies set these limits to reduce the chance of accidents — statistically speaking, younger and older drivers are more likely to cause accidents.

Read More: 6 Reasons Auto Insurance Costs More for Young Drivers

Additionally, taxi companies often have age restrictions. For example, people over 65 might need to pass a medical exam or get a doctor’s approval before driving.

Optional Auto Insurance Coverage for Taxi Cabs

Although you only need to meet minimum insurance requirements, having more coverage is recommended. Taxis often drive thousands of miles yearly, exposing them to a higher risk of accidents. Collision and comprehensive insurance are some of the best options for additional insurance:

• Collision Auto Insurance: Pays for repairs your taxi might need after a collision, even if the accident was your fault
• Comprehensive Auto Insurance: protects your taxi from danger outside of accidents, including vandalism, theft, weather, and fire. 
• General Liability Insurance: Protects you from lawsuits by covering legal fees and other expenses
• Worker’s Compensation Coverage: Helps pay for medical expenses if an employee is injured on the job

New companies pay higher rates than older ones due to a perceived lack of experience. However, your rates will lower once your company shows a history of safe practices.

Having ample coverage will keep your taxis safe if you can afford it.

How Much Auto Insurance for Taxi Cabs Costs

Like regular car insurance, rates vary by taxi cab insurance company. The average price of taxi insurance is $86 a month, but costs can be much more or less.

Multiple factors affecting auto insurance determine how much you’ll pay for your private-hire taxi insurance, including:

• Coverage levels
• Location
• Driving record
• Business hours
• Annual mileage
• Taxi make and model

Of course, you’ll also pay more for every car you add to your policy. If there are enough cars, insurance for taxi companies might come with a fleet or multi-vehicle auto insurance discount.

Check the rates below to get an idea of how much you might pay for taxi insurance.

Taxi Auto Insurance Monthly Rates by Coverage Level & Provider

Another factor that affects your rates is how you choose to buy your policy. For example, many taxi companies buy insurance through a broker, but you can also talk to a representative or purchase directly from a website.

Rideshare Auto Insurance vs. Taxi Auto Insurance

Though they cover similar businesses, taxi coverage and rideshare insurance are different types of auto insurance.

Taxi companies traditionally have cars used only for business. Rideshare companies like Lyft and Uber rely on their drivers’ vehicles, so they don’t need to buy a fleet. Rideshare insurance gives your personal car commercial coverage while you work.

How to Save Money on Auto Insurance for Taxi Cabs

Even if you need a lot of coverage, there are still ways to keep your rates low. Consider the following tips to lower your premiums:

• Choose the right car. Some makes and models are more affordable to insure. Taxi cab insurance companies give reliable, safe vehicles the best rates.
• Only buy the coverage you need. Although you should buy enough coverage for your taxi, you don’t want to go overboard. Only buy what you need to keep rates low.
• Raise your deductible. Your auto insurance deductible is the amount you pay before insurance kicks in. It comes with a financial risk, but raising your deductible lowers your rates.
• Hire safe drivers. Companies that have drivers with incidents on their records pay more for insurance. You can keep costs down by hiring drivers with clean records.
• Find discounts. Some of the most popular discounts for taxi drivers are multi-vehicle, defensive driver, executive driver, and business owner discounts.

The following table displays the various discounts offered by our top providers.

Balancing your policy’s value with how much it costs can be tricky, but the result is worth it. If you’re struggling to pick the right taxi cab insurance, a representative can help.

Get the Best Auto Insurance for Taxi Cabs

Unfortunately, taxi cab insurance is often expensive, even if you do everything possible to lower your rates. However, having the right commercial auto insurance for your taxi cab is vital in keeping your car — and your business — running.

Since taxi insurance can be expensive, you should compare your options. Use our comparison tool to get quotes from the best commercial auto insurance companies in your area to get the best rates on your taxi coverage.