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Compare taxi insurance
Find the best insurance for taxi cabs to protect both you and your passengers.
The best taxi insurance policy makes sure your business has wide protection in case an accident leads to passenger injuries or damage to another driver’s car. However, protecting a taxi can get expensive because they carry more risk than non-business vehicles. Despite that, you have options for lowering your premiums.
What's in this guide?
Do I need taxi insurance?
Yes. While requirements vary by state, you need to have the state minimum livery insurance with liability coverage. And because you drive people in your car, you also need liability coverage that extends to your passengers and covers medical payments if you’re hit by an uninsured or underinsured motorist.
Taxi insurance can be expensive. But the right policy protects you and your passengers in the event of an accident. Some policies also cover you against breakdowns, damage to your car and legal matters.
What’s considered a taxi?
A taxi is defined as a car that drives passengers and has unscheduled pickup points. For example, while you’d book a limo in advance, a taxi can be hailed off the street when you need a ride.
If you need to insure a limousine or black car service that offers scheduled rides, you’ll want to look into livery insurance policies. Most providers that insure taxis will also insure black car services, so if you’re not sure what type of policy you need, you can talk to an insurance agent for more information.
What insurance coverage do I need for my cab?
Laws on the exact types of taxi insurance coverage you need are set by your local Department of Motor Vehicles or Department of Transportation. Depending on the laws in your area, some of these types of coverage may be legally required:
- Liability. This covers damage or injury you cause to others in an accident, and is legally required.
- Uninsured or underinsured motorist. This pays for damages and injuries after an accident where an uninsured or underinsured driver was at fault.
- Medical payments. This covers medical bills for you and your passengers if you’re hit by an uninsured or underinsured driver.
- Collision. This covers damage to your taxi after a collision.
- Comprehensive. This covers damage to your taxi not caused by a collision, like storm damage, fire damage and theft.
- Accessories. This can cover damage to accessories in your cab, like your mileage meter, communication equipment and GPS device.
Compare commercial car insurance for taxis
How much does taxi insurance cost?
Most drivers pay around $5,000 to $10,000 per year, or $430 to $830 per month. But the exact cost of your insurance will depend on where you live, how much coverage you have and your driving record.
Is taxi cab insurance more expensive than car insurance?
Yes, taxi insurance is more expensive than regular car insurance. There are a number of reasons for this, including:
- Taxi drivers spend more time on the road than normal drivers, and therefore statistically have a higher risk of an accident.
- You’re likely to be driving in congested areas, which also increases the chance that you may be involved in an accident.
- Regularly carrying passengers can also mean you’re at a higher risk of personal injury claims in the event your passengers are injured.
How do I get cheap taxi insurance?
There are a number of things you can do to reduce the cost of your taxi insurance.
- Pay your insurance premium annually. Paying your insurance in one lump sum, instead of monthly installments, can help you save on yearly costs.
- Secure and protect your taxi. You can reduce your insurance premium by keeping your taxi in a secure location when not in use and installing security features like an alarm and dash cam.
- Always compare your options. Before committing to a specific policy, shop around to see if you could save money elsewhere. If you already have insurance, compare other options before renewing your existing policy.
- Don’t make a claim unless absolutely necessary. If you’ve gone several years without filing a claim, you may be eligible for a steep discount.
- Increase your deductible. Choosing a higher deductible will generally reduce the cost of your insurance premium. But make sure you can afford to pay the higher deductible amount if you file a claim.
What exclusions should I watch out for?
You may not be covered if:
- You’re under 25. Some insurers won’t cover taxi drivers under a certain age.
- You misuse the vehicle. Any unauthorized or inappropriate use of your taxi will generally result in your claim being refused.
- You use the vehicle outside of an insured area. Many insurance policies will only cover your driving for a certain area or location. If you use your taxi outside of this area, you will likely not be covered in the event of an accident.
Long hours with rotating passengers increase the chance of getting in an accident — and drives up your insurance costs. But you can save on premiums by comparing business auto insurance companies to find the best deal.