Insurance For Taxi Drivers

There is a complex name that people use to describe taxi insurance, which is for-hire livery insurance. This is a type of commercial/business insurance coverage for vehicles used for business purposes. Taxi drivers are on the road a lot more than most people who own cars in most cases. Due to this, they are at higher risk of getting into accidents overall. Also, since they are using their vehicles commercially, to make an income, there are different laws and restrictions surrounding insurance in some areas.

What Is Taxi Insurance?

Taxi insurance is available for people who generate revenue transporting people as a business. It is designed to protect vehicles, passengers, and taxi drivers. There are additional risks that insurance companies take into consideration when determining what a person will pay for their taxi insurance. In most cases, these policies are going to cost more on average. This makes shopping around for the best policy for you vital. Save money on taxi insurance using the free quotes at Cheap Auto Insurance. It is recommended to compare at least three companies to find the top rates available for your specific situation.

Types Of Taxi Insurance

There are multiple types of taxi insurance available, and selecting the right one is essential. Standard auto insurance policies for people who are driving for personal reasons, like to their workplace, visiting family, or getting around in other ways that do not involve making money directly will not work in commercial auto insurance situations. Having the right type of vehicle insurance for your needs is essential as a claim may be denied if the vehicle is being used outside of what a standard policy covers. Having either a public hire or private hire insurance policy may be needed.

Public hire taxi insurance is for vehicles transporting people that do not need to be pre-booked. The most common example of this type of taxi is one that can be hailed by people on the street. Due to the unique situation that these types of taxis have, the insurance policy a person needs to purchase is different than private hire taxi insurance.

Private hire taxi insurance is insurance for vehicles transporting people that are required to be pre-booked. People cannot flag down this type of taxi on the road; they will need to contact the taxi company and set up an appointment. Private hire taxis do not display a taxi sign on them, which is generally another distinction. The requirements that private hire taxi insurance has are different than the requirements for public hire taxis.

Taxi Insurance Requirements

Many factors weigh into determining what the taxi insurance requirements are for you. Just like standard insurance, the city and state where the taxi is being operated will have requirements that need to be fulfilled. This is important to know as sometimes cities that are right next to one another have different rules and regulations that need to be considered. Being aware of the rules and regulations in the state and city you are operating in is vital. Also, consider what the requirements are for utilizing rideshare services as well. Sometimes the insurance requirements for those working for a rideshare company are a little bit different than those working for a taxi company.

It is also important to be aware of the requirements surrounding the type of vehicle you are wanting to utilize, as well as its age. In some cases, older cars cannot be used for taxi driving purposes. Driving a vehicle that the law states you cannot use for rideshare or taxi purposes can result in hefty fines, fees, and other penalties. Each state can have different laws about which types of vehicles can be used as taxis, as well as how old they can be.

Information about a driver can also be used to determine whether they can purchase taxi insurance or not. Depending on the state, a person’s age, driving history, and more, can be used to determine if they are eligible for taxi insurance. In many states, drivers under the age of 25 may not be covered by this type of policy.

Final Notes

Get a taxi insurance quote from Cheap Auto Insurance from multiple companies. Both your taxi business, your vehicle, and you must be protected. Cheap Auto Insurance provides easy access to quotes from multiple companies on policies that can provide protection. To find out if this type of insurance is available in your state, request a taxi insurance quote here.

Finding the best prices for taxi insurance is one of the best ways to keep more money in your bank account. Save on the top taxi insurance policies available at Cheap Auto Insurance today. The professional team here provides the tools needed to answer your questions and get you the best taxi insurance policy available for your situation.