Taxi Insurance: What You Need to Know

Do you need taxi insurance? If you're in the business of transporting passengers, having the right insurance is crucial. This comprehensive guide will help you understand what taxi insurance is, who needs it, what it covers, and how much it typically costs.

What Is Taxi Insurance?

Taxi insurance is a specialized form of commercial auto insurance designed to protect taxi drivers and their vehicles. Unlike standard auto insurance, taxi insurance takes into account the unique risks associated with transporting passengers for hire. These risks include increased mileage, frequent stops and starts, and the constant presence of passengers, all of which contribute to higher accident and liability risks.

Who Needs Taxi Insurance?

Anyone who operates a vehicle as a taxi service needs taxi insurance. This includes:

Traditional Taxi Services: Companies that operate fleets of taxis or individuals who own and drive their own taxi.
Rideshare Drivers: Although rideshare companies like Uber and Lyft provide some coverage, it often falls short. Drivers should consider additional insurance to cover gaps.
Limousine Services: Luxury vehicle operators who transport passengers for hire.
Private Hire Vehicles: Vehicles that are pre-booked for transportation services rather than hailed on the street.

What Is Covered Under a Taxi Policy?

A comprehensive taxi insurance policy typically includes several key coverages to ensure both the driver and passengers are protected:

Liability Coverage: This is mandatory and covers bodily injury and property damage that you may cause to others in an accident. It includes:
- Bodily Injury Liability: Covers medical expenses, lost wages, and legal fees for injuries you cause to others.
- Property Damage Liability: Covers repair costs for damage you cause to another person’s property.
Personal Injury Protection (PIP): Covers medical expenses for you and your passengers, regardless of who is at fault in an accident. It can also cover lost wages and other related costs.
Comprehensive Coverage: Protects your taxi against non-collision-related incidents such as theft, vandalism, fire, and natural disasters.
Collision Coverage: Pays for damages to your taxi resulting from a collision, regardless of who is at fault.
Uninsured/Underinsured Motorist Coverage: Provides protection if you’re involved in an accident with a driver who has insufficient or no insurance.
Medical Payments Coverage: Similar to PIP, this covers medical expenses for you and your passengers, but may have different coverage limits and conditions.
Loss of Use/Rental Coverage: Compensates you for lost income if your taxi is being repaired due to a covered claim, ensuring you don't suffer financially from downtime.

How Much Does Taxi Insurance Typically Cost?

The cost of taxi insurance varies widely based on several factors, including:

Location: Insurance premiums can vary significantly by region due to differences in traffic density, accident rates, and local regulations.
Type of Vehicle: The make, model, and age of your taxi impact the cost of insurance. Newer, more expensive vehicles typically cost more to insure.
Coverage Amount: Higher coverage limits and additional coverages will increase your premium.
Driving History: Drivers with clean records will generally pay less than those with previous accidents or violations.
Business Experience: Established businesses with proven safety records may benefit from lower rates.
Annual Mileage: Taxis that are on the road more frequently will have higher premiums due to the increased risk of accidents.

On average, taxi insurance can range from $5,000 to $10,000 per year. However, this can be higher or lower depending on the specific circumstances mentioned above.

Taxi insurance is essential for anyone in the business of transporting passengers. It provides critical protection against the unique risks associated with operating a taxi, ensuring that both you and your passengers are covered in the event of an accident. By understanding the types of coverage available, who needs it, what it covers, and the costs involved, you can make informed decisions to protect your livelihood. Always consult with an experienced insurance provider to tailor a policy that meets your specific needs and provides comprehensive coverage.

Let us help you protect your business with taxi insurance and keep your mind at ease. At Tivly, our goal is to help you find protection for your business as efficiently as possibly by matching you with the right insurance provider. Simply give us a call at 877-907-5267 or complete the form above and one of our specialists will contact you right away.