NorCal Cars > Articles > Buying Vehicle Insurance > Taxi Insurance
If you are in the taxi businesses either as a self employed driver or you have a fleet of taxi's, then you have probably struggled with understanding what type of taxi insurance you need. Don't be embarrassed though! Taxi insurance can be very complicated to understand even for experienced drivers and it doesn't help that there is a lot of bad information out there from insurance agents looking to make a quck buck. On top of that there is all the legal mumbo jumbo and small print at the end of the policy. But don't give up just yet! Don't just sign up for the first company that gets your attention. This article will be about the basics of choosing taxi insurance. How you select the right type of insurance, what you should know before signing any insurance and how you can keep the cost down of taxi insurance.
Having taxi insurance in some form is a legal requirement for all vehicles to drive on public roads, not just for taxis, but for private cars and other commercial vehicles as well. So you need to have some form of insurance to even drive on the road. The minimum requirement to be road legal is Third Party Insurance,
which protects you from damages that you may do to some third parties property, vehicle, belongings or personal injury. On top of this you are also required to have insurance for the passengers you carry in your taxi. So far so good. These two requirements are fairly obvious, but what else would you want for your taxi business?
Generally it can be hard to find affordable taxi insurance, because the risk of accident from taxi's are higher than for other vehicles. This of course comes down to the time you spend on the road compared to private persons.
Even so, if your taxi business is your main source of income, it would be foolish not to be protected in some form against loss of business and all the other things that could, and probably will, go wrong at some time.
The most common and usefull forms of taxi insurance are the following:
Third Party Fire and Theft
This is probably the minimum insurance you will want to have. It protects you against fire and theft of your taxi, as well as includes the mandatory third party insurance.
Breakdown and Assistance
This policy is an option to sign for when your taxi has a mechanical breakdown. This includes towing and repair if needed. It is one of those policies that few taxi drivers would like to be without, because breakdowns invariably happen whne you drive so many miles as you do as a taxi driver.
Loss of Income
As already stated, if you depend on your taxi for your main income, it will be very unfortunate if you can't drive your taxi because it gets stolen or breaks down. That could put some serious financial strain on you. Loss of income insurance is your protection in this situation. If you are not able to get a replacement vehicle while your own is being repaired, then this policy will reimburse you of the lost income.
As a taxi driver you will get into disputes with other drivers. This is simply stating the obvious. In this litigatious country, you must expect at some time to find yourself in some sort of legal situation.
If you don't have the proper insurance for this, you could find yourself up to your knees in legal documents while having to prepare yourself for court. This can be a very time consuming process. Legal expenses insurance covers all this for you, so you can hire a lawyer to represent you if necessary. This takes a huge load of your shoulders so you can just focus on doing your business, not dealing with litigations.
Glass and Windshield
Depending on where you drive, the weather can put some real strain on your taxi. Storms and rain will damage your taxis windows and windshields resulting in damage that may not be significant, but will make your taxi look shabby. This insurance option keeps your windows and windshields in top notch condition all the time, so your customers will feel safe driving with you.
How Do You Keep The Cost Down?
Taxi insurance can be expensive because of the risk of accident. There are however some ways of keeping the cost down.
Pay a larger deductible
Deductible is the part of an insurance claim that you have to pay yourself. If you choose to have a larger deductible, then you will be able to get lower premium payments. But be carefull not to over extend yourself.
Name Your Drivers
If you have drivers working for you, then it can be cheaper for you if you name them as drivers instead of having an any driver policy.
Keep Your Taxi Safely Locked Up At Night