Driving taxi cabs is no walk in the park — it’s a tough job that presents some unique challenges and risks. Great, comprehensive taxi insurance can provide you with priceless peace of mind and protect your business, drivers, vehicles and customers while on the clock. It’s an important investment that should not be taken lightly, but how much will it cost you?
Key Considerations for Taxi Insurance
The cost of taxi cab insurance depends on several important factors, including but not limited to the following:
1. The level of coverage you choose. More comprehensive taxi cab insurance coverage will cost you more – but keep in mind that this can minimize risks to you, your vehicle, your business and your customers, and pay off in the long run. There are typically three levels of taxi cab insurance coverage to choose from:
- Third party insurance – this most basic level covers the cost of compensating other people for injury or damage caused by your drivers, but not injury or damage to your business’ drivers or vehicles.
- Third party, fire and theft insurance – this middle-range level covers the above, plus damage to your taxi caused by fire or theft.
- Comprehensive insurance – this top-tier options covers all the above, plus protection for your drivers and vehicles.
2. The location of your taxi cab business. Taxi insurance requirements and prices vary from state to state. For state-specific requirements, check with your local Department of Motor Vehicles (DMV).
3. The specifics of your taxi cab(s), including the make, model, year and size of the vehicle, and the number of vehicles and drivers in your fleet. Minibus or Multi-Person Vehicle taxis will cost more to insure as they hold more passengers.
4. Your business’ hours of operation and how many miles you clock up each year.
5. The driving record of your taxi cab driver(s).
Average Cost for Taxi Cab Insurance
In general, you can expect taxi cab insurance to cost more than standard car insurance. This is largely due to increased mileage, more people in the vehicle and more risks while you’re on the job.
Though the price of taxi cab insurance varies greatly depending on the factors outlined above, most policies average somewhere between $5,000 and $10,000 per cab per year in the U.S., on average. For a more accurate estimate cost, request a detailed quote from a taxi cab insurance provider serving your state.
Getting a Bid
Because taxi cab insurance is a significant and important investment, it’s a good idea to shop around and compare rates from at least three taxi insurance providers. We recommend that you consider an insurance provider that specializes in taxi cab insurance, not just a standard car insurance provider. Furthermore, you should look for a provider that specializes in your specific state or location.
Taxi Cab Insurance from OTTIS
If you’re looking for taxi cab insurance in California, Oregon or Washington State, reach out to our team at OTTIS and request a free quote today. We offer competitive, low rates and dependable, personal support for taxi, limousine and non-medical transportation companies. We look forward to hearing from you!