Taxi cab insurance is crucial in order to keep you, your business, your vehicle and your customers safe while you’re on the road. In fact, most states require taxi cab drivers to have insurance that protects customers and innocent bystanders, though specific requirements will vary from state to state. Having quality coverage will give you the peace of mind and confidence you need to focus on and grow your business.
You probably know it’s important, but how much will taxi insurance actually cost you? This article provides an overview to help you understand the typical price range and important variables to consider.
How Much is Taxi Insurance?
Generally speaking, a typical premium range for commercial taxi cab insurance will fall between $5,000 to $10,000 per year. Keep in mind, the actual price of your taxi insurance will depend on many factors, including but not limited to: the number of vehicles and drivers in the taxi fleet, the type, size, age and value of the vehicle(s), the distance to be traveled, the location of your business, your credit and loss history, and the driving records of all drivers, to name a few.
Of course, the price will also vary based on the type, level, limit and deductible of coverage you select, which ranges from the bare minimum to comprehensive. Put simply, there are three standard levels of coverage to choose from:
- Third Party Only taxi insurance is the most basic level, protecting your vehicle and passengers in case of an accident.
- Third Party, Fire and Theft taxi insurance is the middle ground option, covering accidental damage to a third-party property, and typically also personal injury, personal possessions and more. If you were to cause an accident for example, this level would pay for the damage to the other vehicle and any third property damaged.
- Comprehensive taxi insurance will cover all of the above and more, including damages to your car in an accident.
To maximize your coverage, there are additional add-on options to consider, such as: unlimited mileage, public liability policies, business interruption policies, or personal use coverage (in case you’ll be using your car outside of work hours).
The Importance of Taxi Insurance
When determining the level of insurance to purchase for your taxi, you should not only consider the requirements set by the laws of your state, but also how much you value your own safety and well-being. New research shows that taxi driving is a disproportionately dangerous industry, with higher rates of assault and injury while on the job, so it is important to protect not only your business, but yourself while you work.
Where to find Taxi Driver Quotes
We recommend looking for taxi insurance companies that specialize in your state and are familiar with the requirements you’ll be subject to. Be sure to look for taxi cab insurance companies, rather than standard car insurance companies, as the requirements and policies are complex and specific to the industry. It’s a good idea to get multiple quotes so that you can compare and determine which is best for you. Make sure to ask lots of questions so you get a better sense of what it would be like to work with the company – you’ll want a team that is helpful, knowledgeable, and readily available in case of an emergency. For drivers in Washington, Oregon or California, start by contacting our expert team at Oswald Taxi & Transportation Insurance Services to request a free quote.
Answered: How Much is Taxi Insurance?
As you can see, how much taxi insurance will cost you is not a straightforward question with an easy answer. There are many factors to consider, including the requirements in your state, your own driving record, the details of your business, the level of coverage you’re after, and more. Because of these complexities, it’s best to consult with a professional, trusted taxi cab insurance team, and have them walk you through a detailed quote. At OTTIS, we offer low rates and exceptional personal support for taxi cab and other transportation companies – contact us today to get started!
