Today, there are a growing number of ways to operate a taxi business. Depending on the type of niche service you’re looking to offer, different types of insurance may be right for you. It’s important to understand the ins and outs of taxi insurance in order to run a successful enterprise. The first thing you need to know is that not all taxis are created equal. Even in cities where cabs cruise freely, most drivers stick to boroughs they know, and avoid going beyond their personal circle of trust. Thus, it is not uncommon for there to be different coverage limits and types of insurance available when operating a cab Company in the city. In this blog post, we will explain how Insurance for your Taxi Business works.
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Every taxi service is unique in some way. You are not just providing transportation, but you are also a company that deals with health concerns, injury claims, and property damage. These issues can affect you in different ways, depending on the nature of the incident. If you own a taxi service, you’ll need to ensure you have the right taxi insurance in place to protect yourself and your company. When it comes to car insurance, taxis are different than any other type of vehicle. The cars are custom built for the task of transporting people, so you can’t get the same coverage you would with a car that is designed for other uses. You also need to realize that insurance for a taxi business is not just one type of insurance. There are several types of insurance that will suit your needs and suit your situation. We will go over each one of these types of insurance in this section.
Types of Insurance for a Taxi Business
There are two types of insurance you will need to operate your taxi business. Collision insurance protects you if you hit a pedestrian, and Comprehensive insurance protects your company in the event of an accident with another vehicle.
- Collision Insurance: This is what you will find on most taxis today, but it is also required by Uber and Lyft drivers. This is a basic form of insurance that covers you against another object hitting your car.
- Comprehensive Insurance: This is a more comprehensive form of insurance that covers you against damage to your vehicle, injury to yourself and any people in your car, as well as any damage to other vehicles that may be in an accident with yours.
Why Is Insurance for a Taxi Business Important?
Since your taxi business is different from any other type of business, it requires different types of insurance. Depending on which type of insurance you choose, it can affect your rates and the amount of coverage you have. Collision insurance is a must for taxis, but it can also be a bit of a headache. A high-quality collision insurance policy will have a high deductible. The drawback of this is that you will only have coverage if you have collision coverage. The good news is that there are many options that will offer you collision coverage without a deductible.
Understanding the Different Coverage Levels
Collision insurance protects you and your passenger in the event of an accident. If another car hits yours and there’s damage to both cars, collision insurance will cover 95% of the damage to your car, up to a certain amount. If a car damages your car more than the amount covered by your collision insurance, the person who hit you will be held responsible for the rest of the bill. Collision coverage is also known as a “no-fault” policy. This means that the other driver’s insurance company won’t cover any of the costs associated with the accident and iIt’s up to you to find a way to pay the other driver’s damages.