Taxi Insurance: Auto Insurance For Taxicab Drivers
Of the thousands of taxicab’s in the United States, each and every one of the legally registered vehicles needs to carry an auto insurance policy with the proper amount of liability coverage.
Examples of Minimum Insurance Requirements For Taxicab Drivers
Though it may not seem different from your personal auto insurance policy, taxicabs must carry specific liability coverage and it must meet state requirements - though not every state has the same requirements.
In New York City the law requires that all taxi cabs and licensed car services (i.e. Limousines) carry a minimum of $100,000/$300,000 in liability insurance coverage. This means that up to $100,000 for a single individual injured in an accident, and up to $300,000 for all of the passengers injured in an accident.
As you can see, a licensed New York Licensed taxi cab driver has to carry a large amount of bodily injury liability coverage, but, that isn’t the case in every state (or district for that matter).
In Washington D.C. , as of 2004, the minimum requirement for liability coverage was $25,000/$50,000. That pales in comparison to New York, and a state like Florida where the minimum requirement is $125,000/$250,000 and $50,000 for Property Damage Liability.
You think New York has high coverage? Take a look at Oregon. In May of 1999 any vehicle operating as a taxicab must carry at MINIMUM $200,000/$500,000 plus $50,000 for each occurrence involving property damage or a single limit policy with not less than $500,000 covering all claims per occurrence.
Do I Need My Own Auto Insurance For A Taxicab Owned By My Employer?
Taxicab insurance applies to the registered vehicle, and as long as that vehicle currently carries at least the minimum required auto insurance for a taxicab in the state in which it does business, then it’s covered. However, your employer may require you to pay all or some of the premium (sometimes in the form of a monthly fee) when “leasing” the taxi cab. Also, if you’re self-employed (many taxi drivers are self-employed), providing the necessary liability coverage may be your requirement. Your employer should tell you upfront what the insurance requirements, if any, will be your responsibility.
It’s so important that this issue is addressed before operating any taxicab. Make sure there is current and proper auto insurance coverage and understand who pays for what.
Coverage requirements and cost will vary from state to state. If you have any specific taxi insurance questions please check with your state Department of Insurance and any applicable Taxi Licensing division in your area.
Start Your Auto Insurance Quote
Related Articles
Filed under: Auto Insurance Articles
Content contained within AutoInsuranceStories.com is copyright autoinsurancestories.com © 2007. This content is not to be construed as insurance advice. You must always speak with a licensed insurance agent regarding your auto insurance policy.
I heard that taxicab insurance can be in the tens of thousands of dollars per year. To me, I would pass on this job. Even if you could make $65,000/yr you’re paying for all your own fuel, leasing the vehicle, paying for insurance and worst of all your schedule and territory are not always chosen by you.
insuring a taxicab is ridiculous…the companies should do this for you. It’s hard enough to make a decent living driving a cab, you shouldn’t have to foot all the bills.
owning a taxicab company would be the way to go. If you’ve got to pay the insurance anyway, may as well get a used chevy caprice, slap some stickers on it, get your taxi license and insurance and drive.
how much to insurance my taxi?
Do I have to pay for my own taxicab insurance? Is it more expensive in New Jersey than New York? What about comprehensive and Collision? Do I need that?