How to Buy the Right Taxi Insurance

If you own or operate a taxi or limousine service in your city, you need to make sure that you have the right taxi insurance in place. While ride-hailing services like Uber and Lyft have brought the car-sharing economy to the masses with their low fares and convenient apps, taxis are still widely regarded as the most common option for getting from A to B. If you own or operate a cab company in your city, then it’s essential that you take steps now so that you don’t run into any serious problems down the road.

How to Buy the Right Cab insurance

Whether you operate a private car service or a wheelchair-accessible service like a taxi or wheelchair van, it’s important to note that you will need to purchase a whole new set of insurance policies. This is because ride-hailing services are still not regulated in many areas — meaning that the motorists who are providing them (and the customers who use them) are not covered under any forms of insurance. This means that drivers and customers will not be covered if they are held liable in an accident, or if they are sued for damages due to their negligence. Furthermore, since ride-hailing services are not regulated in any way, companies won’t be able to offer any form of liability coverage. For these reasons, you will need to make sure that you purchase a comprehensive set of taxi insurance policies that will cover you against all kinds of liability and damages.


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What is the Required Minimum Coverage?

The first thing that you will want to make sure of when shopping for cab insurance is that your policy has a minimum coverage amount. Most providers will allow you to purchase policies with low coverage amounts. This will ensure that you have enough in place to cover you for any damages that occur to your taxi, or any injuries that one of your passengers might suffer during their ride with you.

What Is an Add-On?

The next thing that you should make sure of when buying cab insurance is what kind of add-ons you want to include in your policies. In most cases, you can choose between a few different types of add-on, including accident forgiveness, property damage, and collision forgiveness. What you choose will depend on your specific needs, and will also depend on what other add-ons are included in the policy..

Which Additional Coverage Should You Have?

When you’re deciding what coverage options to choose in your policies, you also want to consider what kind of other coverage you want to include. For example, if you own a fleet of cabs, then you might want to look at policies with roadside assistance coverage. You can also look into having a business interruption coverage that will allow you to cover any expenses that result from your company being sidelined for a set amount of time.

When it comes to buying the right type of taxi insurance, it’s important to keep in mind the following guidelines. First, make sure that your policy has a minimum coverage significant enough for your business. Second, make sure that your policies include a comprehensive set of liability and damages coverage options. Finally, make sure that you also consider what other types of coverage you would like to see included in your policies.


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Jack is Tech blogger. He contributes to the Finance, Insurance, Money Investment and Saving Tips section on InsuranceMost.