taxi cab insurance
When you think of a taxi cab, you might think of the traditional yellow cab, but they are not the only vehicles that are considered taxis for the purpose of insurance. Other car services that drive someone from one place to another also qualify as taxis, including those that use personal vehicles and those that use company-owned vehicles driven by employees.
All of these vehicles have one thing in common: they all require commercial insurance coverage.
Commercial vs. Personal Insurance
The first thing you will notice about commercial insurance is that it is priced higher than personal insurance, and in some cases, the difference can be very large indeed.
There are several reasons for this:
- There are higher limits that are allowed on commercial insurance because there is a higher amount of risk involved.
- Commercial policies typically have standard deductibles, which are usually higher than those offered for personal insurance.
- Commercial insurance may cover some of the loss of income in the event of a covered loss of a vehicle.
When the Cab IS Company OwneD
If you are a taxi cab driver that works for a company, you will typically go to work, pick up a cab that may or may not be marked or designated as a taxi cab, and then pick up fares for your scheduled shift.
The company will cover the cost of commercial insurance on that vehicle, which should also cover you as the driver in case there is an accident that involves injury to you, your passengers, or any other drivers.
If You Are the Company Owner
The more vehicles that you must cover, the more you will want to search for the best coverage at the best rate. Commercial insurance, especially for taxi cabs, may have different requirements from state to state, so it is important to speak to a local agent about your coverage needs and then to compare rates so that you are paying the lowest premium for the coverage you need.
Some of the requirements that you may be faced with include:
- Coverage for all drivers.
You will have to list everyone that is authorized to drive your cabs in a professional capacity.
You may also have to list drivers that may be driving other vehicles even if they are only driving for recreation or personal needs.
- Garage facilities.
Some companies will require that vehicles that are listed on the commercial policy be kept in a garage or other structure.
- There may also be requirements for security at the garage so that vehicles are not easily removed by unauthorized people.
Single Policy vs. Multiple Policies
For the commercial cab company, the taxi insurance is usually written for the entire company rather than per vehicle. The insurance company may use an average value of the cabs to determine the coverage amounts and then will use the highest rate for the drivers.
This can be different from agency to agency and each policy is written specifically for the company in question, so always discuss needs and coverage levels with your agent.
Having multiple policies can be beneficial if you have a wide range of vehicles with varying levels of condition or value.
However, if most of your taxi cabs are in the same or similar condition and come from the same model year (with one or two years of fluctuation) then it is easier to just use a single blanket policy that covers the cars themselves and the drivers.
These policies will also cover the passengers in the vehicle plus any other vehicles or other property damaged in the event of an accident.
Getting Quotes and Comparing Prices
The most important thing that you can do is to get several comprehensive quotes so that you can compare coverage, pricing, and deductibles. You can also compare customer service and other factors while you are at it.
Remember, commercial insurance will be considerably more expensive than personal insurance, so be prepared for that. You will also need much higher limits for the various types of coverage as well. You will need to be sure that you are covered not only to satisfy state requirements, but to protect your company and your investments.