If you drive a cab, you need good taxi insurance. Far from just a convenience, it’s a necessity in a world where accidents happen. It’s also the law.
Your car insurance will not give you coverage if somebody is injured in a car being used commercially. Even your own injuries or car damage can be denied if you were using your own car for business.
Taxi drivers know that when their car is damaged, they aren’t just losing transportation: they’re losing their source of income. At the same time, they also know that there’s a lot of overhead in this industry.
Paying too much is not an option, nor is paying for something unreliable. We put together this guide to help you find cheap, yet reliable insurance for your taxi cab business. If you’re looking for affordable and fair quotes for taxi insurance, reach out to us and we’ll help you get started!
Types Of Insurance
Taxi drivers and other types of chauffeurs need to know the different types of insurance on the market before they make a decision. That’s because, depending on what you get, your policy may or may not cover all that you do.
Below are some examples of the different ways cabs are insured.
Public Hire Insurance
Public hire insurance is insurance for taxis that can be flagged down and hired on demand. This can cover either individual cabs or fleets (though we will cover fleet-specific insurance later.)
Good public hire insurance will protect you against the irresponsibility of other drivers along with damage to your vehicle and the injuries of you and your passengers on a trip.
It’s important that cab drivers hiring public hire insurance, along with all other types, have a good driving record. Points on your license will drive your rates up, which makes sense: the more points you have, the more likely “if” is to become “when.”
Any Driver Insurance
If you commandeer a fleet of cabs or plan on hiring new drivers, you need any driver taxi insurance. Any driver insurance protects you and your employees.
As a rule, any driver insurance is going to be a bit more expensive than private insurance. Once again, this makes sense: more drivers means more insurance. It’s the same reason you pay more for an entire pizza than a dollar slice.
Private Hire Insurance
If you drive a limo or other privately contracted taxi, then you need to get private hire insurance.
The good news for driving companies is this: private hire insurance is a cheaper form of taxi insurance than either public hire or any driver insurance. That’s because you know exactly who you’ll be picking up and don’t need to worry about being robbed.
In addition, private hire insurance is the only way to insure a privately hired vehicle. Insurance made for public cabs will not payout in the event of an accident.
Commercial Insurance for Taxi Cabs: Choosing Your Level of Coverage
Similar to standard car insurance, the cost of your commercial taxi cab insurance depends largely on the level of coverage you choose. Because driving a taxi is a high-risk profession, we recommend going with the most comprehensive insurance you can afford. As a business owner, peace of mind is priceless!
Below is an overview of the different levels of coverage you can choose from:
Comprehensive: As the most comprehensive option, this level of commercial taxi cab insurance covers any accidental damage to third-party property, as well as personal injuries, personal possessions, windshield damage, and more. For example, if you were to be at fault and cause a collision, this level of coverage would cover not only the damage to the other vehicle but also any damage to your car and/or any other third-party property. This level of coverage does the best job of protecting your drivers, passengers, vehicles, and business as a whole.
Third-Party, Fire, and Theft: This level of commercial taxi cab insurance usually covers all of the above, excluding any damages to your car in an accident.
Third-Party Only: This third option covers only the damage to vehicles you cause in an accident, and to passengers in your car who may have been hurt. It’s the most bare-bones level of coverage.
Depending on the specifics of your business, you can choose to add-on additional forms of specific coverage such as unlimited mileage, public liability policies, personal use coverage, and more.
How Much is Taxi Insurance?
As a general rule, taxi cab insurance costs more than standard car insurance. This is understandable due to more time spent on the road, more people in and out of the vehicle(s), and more risks involved.
That being said, the price of taxi cab insurance varies greatly depending on the specifics of your business. Factors that affect the cost of insurance include the level of coverage you choose, the location of your taxi cab business, the number of drivers and vehicles in your fleet, the specifics of your vehicle(s) (make, model, year, size, etc.), your hours of operation, your miles driven per year, the driving records of your drivers, and more.
To give you a general sense of the cost of insurance, most policies fall somewhere between $5,000 and $10,000 per cab per year in the U.S., on average. For a more accurate price estimate, request a detailed quote from a taxi cab insurance provider serving your state.
If you’re ready to start requesting quotes, we recommend looking for an insurance provider that specializes in taxi cab insurance, rather than going through a standard car insurance provider. Additionally, it’s a good idea to look for a provider that specializes in your specific state or location and is familiar with local requirements.
Get Quality Taxi Insurance
While there is a lot to think about when you get your cab insurance, you should be happy to know that there are options for drivers who want options.
We provide fair taxi insurance quotes for taxi businesses in Oregon, California, and Washington, and more states coming soon. Our goal is to get you what you need at the price you want. Contact us today to make it happen! 
