Taxi Insurance: Companies, Cost, Quotes & Liability

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Do you own or lease a taxi? If you are offering a taxi service, including an unmarked car service using your personal vehicle, it is essential that you maintain adequate taxi business insurance coverage for your vehicle and your commercial activities. Whether you need taxi fleet insurance or Uber coverage, we’ll help you navigate the details.

Given the high possibility of an automotive accident, particularly relevant to the constant driving conditions of a car-for-hire service, you need to make sure that your vehicle, your ongoing business revenue, your physical body and your customers are well covered. In fact, regional regulatory statutes mean that the legal operation of a taxi service requires an industry-standard minimum for vehicular and personal coverage for your taxi insurance.

Also read: Cargo Van Insurance: Cost & Quotes From $1 1

Taxi Liability Insurance

Taxi car insurance covers a broad range of contemporary transportation options, not just the old-school marked cabs. Uber and Lyft are two of the giants that recently emerged in the private car transportation service industry. No matter what you drive, if you give rides to others for a fee, you need appropriate taxi driver insurance, including vehicle coverage, whether for short-term taxi insurance or permanent coverage.

The most common form of taxi insurance policy covering taxi and transport insurance needs is liability insurance. This type of policy protects you after an accident for which your vehicle was found to be at fault. The policy covers passenger vehicles you own, lease or rent. In the event of court action as a result of an accident, your policy will cover legal and other fees if a lawsuit is filed against you.

The following items are covered under taxi liability insurance coverage:

• Bodily injury

• Property damage

• Medical payments

• Comprehensive physical damage

• Collision damage

• Specified causes of loss (Combined Additional Coverage “CAC” for fire and theft risk)

• Uninsured or underinsured motorist (can include Collision Deductible Waiver “CDW”)

Taxi Public Liability Insurance

Public liability insurance for taxi services is a coverage that is necessary for any business dealing directly with the general public. With most general liability insurance for taxi services, public liability is pre-included in the policy, yet it also covers your taxi business from any lawsuits and claims coming from your employees, vendors and business owners, in addition to coverage from public complaints coming from your customers. In essence, your taxi liability insurance covers your vehicle, fleet, drivers and business operations, but it is essential to make sure that your  policy  is covering your taxi service business from any lawsuits filed by members of the public who will be riding in your taxi car, along with their possessions, against your business.

Your taxi public liability insurance coverage will provide for:

• Personal injury to a third party

• Loss or damage to property of a third party

• Death of a third party

• Legal expenses pertaining to claims related to the issues listed above

Commercial Auto Insurance for Taxi Service

Whether you have one branded car, a fleet of cars or a personal car you use for a moonlighting side-gig, there are several types of commercial taxi insurance for taxi service available:

• Weekly taxi insurance

• Monthly taxi insurance

• Temporary taxi insurance

• Airport taxi insurance

It is important to note that commercial auto insurance policies for vehicles (whether a marked taxicab or private vehicle for hire through an app service) differ from personal auto insurance. It is essential that all taxi operators carry commercial auto insurance (which is also more expensive than personal use policies). There are also situations where a passenger taxi vehicle will need both commercial and personal policies in place.

Taxi fleet insurance is similar in nature to other vehicle-oriented business insurance needs. > Dump truck insurance, tractor insurance, heavy equipment insurance  and seasonal snow plow insurance are all examples of business types that also have to look into the various aspects of commercial vehicle insurance, although without the added extra pressure of third-party passenger considerations. Bobtail insurance is an example of extended coverage to commercial auto insurance.

Taxi Insurance Cost

The average taxi insurance cost is about $78/month, or $930 per year for general liability. However, the average taxi insurance price will depend on many factors, the more drivers and vehicles your taxi business have, the more your taxi car insurance cost will be. Also, your taxi service insurance requirements may vary according to your state’s minimum insurance regulations. 

Remember, when searching for cheap taxi insurance quotes, that you need to make sure you are adequately covered in order to mitigate the potentially catastrophic financial implications of an accident. If you are driving with the Uber service, remember that your third-party and commercial operations may be fully or partially covered by Uber’s insurance provisions. Double-check the Uber policy with your insurance broker to be certain you are covered for your circumstances and vehicle use.

To get the best offers and rates for commercial taxi insurance online and perform an instant taxi insurance online quote comparison from top taxi insurers, click the 'Get Quotes' button and complete the questionnaire to have the best taxi insurers compete on your business! 

Best Taxi Insurance Companies

Here’s a quick listing of some of the most popular and affordable taxi insurance underwriters on the market today:

• Progressive

• CoverWallet (Aon) - best for taxi insurance quotes comparison online!

• AARP

• Allstate

• Liberty Mutual

• Prime

• Bankers

• AXA

Taxi service has rushed onto the global service industry scene recently. Many urban residents are forgoing personal car ownership in favor of using smartphone-app ride-hailing services which are convenient, hassle-free and economical. For many workers, having a side-hustle for extra income is now possible by using a personal vehicle and without requiring the excessive certification processes typical of the old-school taxi industry. 

We are in a new world of transportation, and it’s here to stay. This is a critical time to review the essentials of appropriate taxi and car-for-hire insurance coverage to make sure that a part-time job or fleet operation doesn’t become a financial disaster in the making.

Uber Taxi Insurance

For drivers working with the Uber app, Uber provides commercial auto insurance for rides coordinated through its ridesharing platform. When Uber drivers are online and available for pick-up, as well as when on route to pick up and during trips, Uber provides third-party liability insurance. Note that the rate of coverage during the trip is $1M for third-party liability and includes car cash value for comprehensive and collision coverage. The rate of coverage is less during a driver’s time working but not within a trip’s duration (i.e. during ‘available’ or ‘waiting’ times).

AXA Taxi Insurance

As with Uber coverage, the car owner’s personal automobile insurance must be maintained, as it is the only coverage during personal use times of vehicle use. However, with AXA policies (covering non-US locations), there is coverage during business use of your vehicle for injury, loss or damage to third parties and their property. The policy can be widened to include fire, theft or accidental damage as well.