How Taxi Cab Insurance Differs from Regular Car Insurance

images (2)With ride sharing apps like Uber and Lyft taking the spotlight from them, more and more taxi drivers are opting to find other means of living. That, however, does not mean that taxis are no longer a significant sector of the transportation industry.

With risks of road accidents increasing, it is incredibly important for taxi drivers to avail of taxi cab insurance to make their source of living secure. Still, there are a lot of confusions as to the difference between taxi cab insurance and regular car insurance.

What you need to know

There are two kinds of taxi cab insurance. The first one is private hire insurance. This covers all mini-cab type vehicles that are usually pre-booked and do not roam the avenues and streets to be hailed by passengers. Public hire insurance, on the other hand, is for any taxi cab that registers with city councils and state governments so they can pick up passengers all over a certain area.


  1. Taxi cab insurance is more expensive.

Generally, taxi cab insurance is much more expensive than regular car insurance. This is because driving a taxi entails more risks and usage. As with all insurance, a taxi’s proneness to accidents and theft dramatically increases the premiums. Taxis are also usually designed to fit more people so the size also plays a big part in the cost of insurance.

  1. Most of the time, your passengers are also insured.

One advantage of taxi cab insurance is that all the passengers are also covered. This is partly to persuade potential passengers that they are protected during the ride. A taxi cab insurance is a valuable resource for companies that can be used when taxi drivers get into unforeseen circumstances, thus the business should consult with a competent lawyer or attorney specializing in New York City car accidents.

  1. Taxi cab insurance usually has business interruption cover.

There will be chances that the taxi cab a driver is using becomes subjected to mechanical failure. Cars are machines that break down from time to time, after all. This inevitability, however, will affect your source of income. Most taxi insurance companies offer fully certified alternative taxis that may be used in this scenario. So it is imperative that you check this clause in the insurance agreement before your company signs it.

  1. Taxi insurance is more conscious about mileage limits than regular car insurance.

While all car insurance plans have mileage limits, individuals rarely think about them when driving. That is not the case with taxi drivers. To fully avail of the benefits of insurance, always verify if the plan has unlimited mileage.

  1. Sometimes, taxi insurance includes personal use.

While not all insurance plans have this option, a lot of those who have taxi cab insurance are protected — whether they work or use their car for personal use. This presents a great advantage to most car drivers, who usually do not have their own cars so they can run their own personal errands.

So if you have your own taxi fleet, taxi insurance is the best way for you to protect your own property and business.