Taxi insurance is a type of coverage that protects you, the driver, in the case of an accident. In fact, it’s your responsibility to make sure that the car you drive is covered by the proper auto insurance policy. Many taxi companies require this coverage to protect their customers from financial loss if a taxi is involved in a collision. This coverage can also protect you from lawsuits from people who have been injured in taxi accidents.
Types of Cab Insurance
- Collision – This covers the repairs to either the front or back of your car if you hit another car, a tree, or a building.
- Loss of Use – This coverage protects your car and the contents inside the car if you are unable to drive the car for any reason. It might include things like health issues, an accident, or a breakdown.
- Third-Party – This coverage protects you if you are involved in a collision and someone is injured. It covers injuries to the other driver, pedestrians, or other vehicles.
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Why is Cab Insurance Important?
It sounds like a silly question, but why do you need taxi insurance? While it’s a business expense that you have to account for in order to be able to use a taxi, you may actually need it in two situations:
– If you drive for a company that uses their own car for company transportation. Most companies require cab insurance for their employees.
– If you drive an Uber or Lyft. Neither company has a requirement for personal insurance for drivers. However, you are required to have third-party insurance to cover passengers who are injured in your car. It’s best to check with your company’s rideshare policies to see how they handle this.
How to Find the Right Price for Your Car
Your first step is to find the price of cab insurance in your area. To do this, use a site like Allstate’s rate finder to find the average price of insurance in your area. Once you have the price, you’ll be able to compare it to the price you would have to pay for a taxi service. Depending on your area, the price difference could be as little as $5 a week. If you can’t find $5 a week, it’s likely that the cost of the cab insurance is higher in your area. As you look into the cost of taxis, you may find that different cities have different prices. If you do, select the city in your area with the lowest cab insurance price.