Taxi Insurance

More expensive than traditional car insurance policies, taxi insurance is a necessary expense to legally provide services as a taxi driver. There is a higher amount of risk that taxi drivers have due to the larger number of hours they are on the road. Risks can also include traffic, unruly passengers, and pedestrians. Professionals in this industry need to be diligent about their driving, and also about their awareness of the types of auto insurance they purchase. The higher risk levels for taxi drivers mean that higher costs for motor insurance plans are likely. Car insurance companies utilize risk as a way to determine a person’s rates. If a person is statistically more likely to get into an accident, their insurance rates are likely to be higher. What a person pays can also vary based on the state they are living in, the location their vehicle is garaged, their driving record, and numerous other factors.

Why Do I Need Taxi Insurance?

Taxi insurance is necessary for people in this profession due to the larger amount of risk these drivers have. Insurance is what protects you financially if an emergency occurs, keeping more money in your pocket. You will be driving more miles than the average person, increasing the statistical likelihood of an accident occurring. The price you pay for automobile insurance reflects this, and it is essential to keep in mind that many different types of insurance plans exist. It is highly recommended to get more than the minimum amount of automobile insurance when purchasing the policy as a taxi driver. You can get plans that protect your vehicle, as well as liability insurance of multiple types.

Types Of Taxi Insurance Policy

There are a few different types of insurance plans, and for private hire taxi insurance, three main types are considered. The first type is called “policy only.” Also available are “named driver” and “any driver over a set age.” The policy only is the cheapest form of coverage in most cases, and it is the most basic type. Generally speaking, the more names added to the policy, the more expensive the policy will get. The middle level of insurance coverage is called “named driver.” This coverage helps protect named drivers, but not anyone else. In any driver, the policy covers any person who drives your taxi. Since more names are added to this policy, it is more expensive overall.

What’s The Difference Between Private Hire And Public Hire Taxi Insurance?

Two different types of taxi insurance coverage are private hire and public hire. These provide coverage in different situations. Private hire taxi insurance provides financial protection if you drive a taxi that cannot be hailed in the street. These taxis are pre-booked only. Public hire taxi insurance will cover taxis that are both available for pre-booking, as well as those that can be stopped in the street. In most cases, public hire taxis are company-owned and will display the taxi sign on the top of the vehicle. The rules and requirements for both private hire taxis and public hire taxis can vary from one state to the next.

What Should Taxi Insurance Cover?

The coverage you purchase for your taxi, whether it is a private hire taxi or a public hire one, is determined by the area you are driving in and the associated laws. In most cases, you will need to purchase third-party car insurance. Other insurance types that may be required include fully comprehensive insurance, third-party fire and theft, and more. Due to the higher risk taxi drivers have, including coming into contact with many different types of passengers, many professionals recommend getting higher amounts of coverage than the minimum limits.

How Can I Get Cheap Taxi Insurance?

Insurance for a private hire taxi is more expensive than traditional insurance on average. There are three different types of insurance plans, each with different benefits and different average costs. The vehicle a person drives also has an impact on what a person will pay for taxi insurance. Many taxi drivers drive larger vehicles that fit more passengers. Getting cheap taxi insurance coverage starts with comparison-shopping at Fontana Trucking Insurance. The free quote tools provided here for lower cost taxi insurance can be used for commercial vehicles of all types, including taxis.

Outside of this, building up a good driving record, avoiding unnecessary claims, increasing the security systems in your vehicle, getting a dashcam, and comparison-shopping are all ways to save money. Get the best policy for your situation using the tools here. Also, bookmark this page and come back often to get new quotes. It is recommended to shop around for car insurance every year or two as the formulas used to determine your rates may have changed over time.