Working in the passenger transportation industry comes with many wonderful benefits, but also some inherent risks. Spending so much time on the road, and in close proximity with strangers, increases the chances of dangerous events like collisions, theft, assault, and more. That’s why it’s so important to protect yourself and your business with proper passenger transportation insurance. Read on to learn more and explore your options!
An Introduction to Passenger Transportation Insurance
According to the Federal Motor Carrier Safety Administration (FMCSA), a for-hire passenger carrier is a person or company that provides transportation of passengers for compensation. Businesses and individual drivers in the passenger transportation industry must be licensed and insured. There are minimum insurance requirements set by law, and failure to comply with your local state regulations can result in massive fines.
Although meeting minimum requirements is important, it is better to go a step further and invest in more comprehensive passenger transportation insurance. The peace of mind that comes with knowing that your drivers, passengers, vehicles, and business as a whole is protected is priceless.
Types of Commercial Passenger Transportation Insurance
Depending on the nature of your passenger transportation business, there are different types of commercial insurance available to you. Keep in mind, there are many specific types of insurance and it can quickly get confusing, so talk with a transportation insurance company if you have questions or are unsure of where your business falls.
The main types of passenger transportation insurance are outlined below:
- Taxi Insurance: Standard vehicle insurance is simply not enough to protect your taxi business, driver, passengers, and vehicles from all these risks that come with the job, which is why you need commercial insurance for taxi cabs.
- Limousine Insurance: Limo insurance is a type of livery insurance that protects drivers and luxury vehicles that transport people on a for-hire basis. In other words, because limo and black car businesses typically offer pre-scheduled or for-hire rides, they need a specific type of insurance, known as livery insurance.
- Shuttle Bus Insurance: The type of insurance you need for your shuttle bus depends on the type of bus and what it’s used for. The different types of insurance for shuttle buses include but are not limited to: property damage liability, medical payments insurance, workers’ compensation insurance, and bodily injury liability.
- Non-Emergency Medical Transportation Insurance: Non-emergency medical transportation insurance is a specific kind of for-hire livery insurance. This type of insurance protects businesses that transport patients or people with specialized needs on a prearranged, non-emergency basis.
Passenger Transportation Insurance Cost
You can expect passenger transportation insurance to cost more than standard car insurance because of increased mileage, more passengers, and more risks while you’re on the road. The actual cost of your passenger transportation insurance will depend on many factors — particularly the type of passenger transportation business you operate. Other factors that affect the price include: the level of coverage you choose, the location of your business, the specifics of your vehicle, the driving records of your drivers, and more.
To give you a sense of the price range, taxi cab insurance policies usually cost somewhere between $5,000 and $10,000 per cab per year in the U.S., on average. For a more accurate cost estimate, you should request a detailed quote from a passenger transportation insurance provider serving your state.
Transportation Insurance for Your Business
If you’re looking for affordable passenger transportation insurance, we’re here to help! We specialize in passenger transportation insurance and can help you find the right solution to protect your business and help you thrive.