Taxi Insurance – A Brief Overview

What is taxi insurance?

Taxi insurance is a safety cover for taxis. The frequency of road accidents has risen like never before. In such a dangerous scenario, cab drivers and the cab are both at high risk since almost all their working time is spent traversing the high traffic ridden roads. In case of accidents, taxi insurance provides different kinds of covers like road damage, car damage, third party damage, passenger injury cover and legal cover. Taxi owners can choose covers that they feel they are most likely to utilize. Taxi insurance is a safety net for taxis and their drivers.

What is the need of auto insurance?

The answer to this question is the same as for the question regarding necessity of insurance for a private car. In case of taxis, the chance is more pronounced because taxis tend to be more exposed to the chance of accident and damage on the highway. Further, Uber can’t be held responsible to cover damage if they’re in the taxi once the accident occurs. The entire monetary burden falls on the shoulders of the taxi owner. Taxi insurance provides cover in times of accidents. It offers monetary relief to taxi owners by covering for various damages. Lawsuits cause major expenditure if the other party mixed up in accident files it against the cab company. Since lawsuits devote some time and money, having an insurance to fall back on can be quite a huge respite in scorching situations.

What are the forms of taxi insurance?

Auto insurance is of two types – private hire insurance and public hire insurance. Private hire services are services where in fact the taxi transports passengers only if they have booked beforehand. Public hire services will be the services where the taxi could be booked in either advance or hailed off on the road. Insurance is provided for both most of these taxis services. In general, private taxi hire insurance is cheaper than public hire insurance. The insurance coverage needs to be chosen keeping in mind the type of services that the taxi company mostly provides.

Insurance for the whole taxi fleet

Many taxi companies have more than one vehicle. In order to save costs, insurance can be taken for the whole taxi fleet rather than a single insurance for every taxi. However, insurance firms have limits while giving fleet insurance just like the minimum number of cars. Even though monthly premium for fleet insurance is a lot more than that for an individual taxi, it is significantly less than the sum of all the plans of individual taxis come up with. Therefore, they grow to be more cost-effective.

Where to find taxi insurance?

Taxi insurance can be found with all major insurance firms. You can also search for auto insurance online. However, before buying a policy, you need to consider several factors like your allowance, kinds of covers that you’ll require, the condition of where your service operated and the expertise of your drivers. Taxi insurance may be the most important safety feature for a taxi company and therefore, its significance shouldn’t be neglected.

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