Auto Insurance for Taxi Cabs [2023 Update + Rates]

Unlike a standard insurance policy, taxi insurance is designed specifically for taxi cabs. It protects passengers, drivers, and the cars themselves.

Taxi insurance is also different from commercial policies for similar businesses. For example, rideshare insurance is specifically for people who drive for Uber or Lyft, while limo insurance considers the car’s length and value.

Taxi insurance must meet local laws and the general requirements of the industry. Read on to learn more about taxi cab insurance, then compare rates to find the most affordable policy possible.

What are the requirements for taxi cab insurance?

Like regular car insurance, taxi cab coverage must meet specific requirements. However, states regulate taxi cabs more heavily than insurance for personal vehicles.

Every taxi driver will see different requirements for their insurance based on several factors, including:

• Location. States and cities have different rules for how much insurance a taxi driver needs to carry before they can work.
• Vehicle. Not all car types can serve as a taxi — some makes and models, along with older cars, might not be acceptable.
• Driver. Your age and driving history play an important role in your insurance. Taxi insurance companies reject drivers with too many incidents in their records.

If you’re unsure how much insurance you need, contact your DMV. They can tell you exactly what you need to drive. Alternatively, you can ask your insurance company for more information.

Are there age restrictions on insurance for taxi cabs?

Insurance companies have different eligibility criteria, but most taxi drivers must be between 25 and 65. Insurance companies set these limits to reduce the chance of accidents — statistically speaking, younger and older drivers are more likely to cause accidents.

Additionally, taxi companies often have age restrictions. For example, people over 65 might need to pass a medical exam or get a doctor’s approval before driving.

How does your driving record affect insurance for a taxi cab?

Your driving record affects your car insurance, whether you’re driving a work or personal car. Points or incidents on your record, like speeding tickets, reckless driving charges, or a DUI, can significantly increase your rates.

Taxi drivers with too many incidents on their records will likely lose their insurance, making it illegal for them to drive. Taxi companies are also less likely to employ you if you have a bad driving record.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

How much does taxi insurance cost?

Like regular car insurance, rates vary by taxi cab insurance company. The average price of taxi insurance is $86 a month, but costs can be much more or less.

Multiple factors determine how much you’ll pay for your private-hire taxi insurance, including:

• Coverage amount
• Location
• Driving record
• Business hours
• Total mileage
• Make and model of your taxi

Of course, you’ll also pay more for every car you add to your policy. If there are enough cars, insurance for taxi companies might come with a fleet discount.

Check the rates below to get an idea of how much you might pay for taxi insurance.

Another factor that affects your rates is how you choose to buy your policy. For example, many taxi companies buy insurance through a broker, but you can also talk to a representative or purchase directly from a website.

Is rideshare insurance the same as taxi insurance?

Though they cover similar businesses, rideshare and taxi insurance are different.

Taxi companies traditionally have cars used only for business. Rideshare companies like Lyft and Uber rely on their drivers’ vehicles, so they don’t need to buy a fleet. Rideshare insurance gives your personal car commercial coverage while you work.

Most insurance companies sell rideshare insurance as an add-on rather than a separate policy. However, you’ll need a separate policy if you run a taxi business.

Optional Insurance for Taxi Drivers

Although you only need to meet minimum insurance requirements, having more coverage is never bad. Taxi cabs often drive thousands of miles yearly, exposing them to a higher risk of accidents. Collision and comprehensive insurance are some of the best options for additional insurance.

Collision insurance pays for repairs your taxi might need after a collision, even if the accident was your fault. Knowing what collision insurance is and how it works is important if you drive for a living.

 Comprehensive auto insurance protects your taxi from danger outside of accidents, including vandalism, theft, weather, and fire. Taxis working in a high-crime area should have comprehensive insurance on the policy as extra protection.

You’ll need additional business-related insurance if you run a fleet of taxis. General liability insurance protects you from lawsuits, while worker’s compensation coverage helps pay for medical expenses after an employee gets injured.

New companies pay higher rates than older ones due to a perceived lack of experience. However, your rates will lower once your company shows a history of safe practices.

Choosing the least amount of insurance possible can be tempting to keep your rates low. However, this is a dangerous game that can cost thousands of dollars. Having ample coverage will keep your taxis safe if you can afford it.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

How can you save money on taxi insurance?

Even if you need a lot of coverage, there are still ways to keep your rates low. Consider the following tips to lower your premiums:

• Choose the right car. Some makes and models are more affordable to insure. Taxi cab insurance companies give reliable, safe vehicles the best rates.
• Only buy what you need. Although you should buy enough coverage for your taxi, you don’t want to go overboard. Only buy what you need to keep rates low.
• Find discounts. Some of the most popular discounts for taxi drivers are multi-vehicle, defensive driver, executive driver, and business owner discounts.
• Raise your deductible. Your deductible is the amount you pay before insurance kicks in. It comes with a financial risk, but raising your deductible lowers your rates.
• Hire safe drivers. Companies that have drivers with incidents on their records pay more for insurance. You can keep costs down by hiring drivers with clean records.

Balancing your policy’s value with how much it costs can be tricky, but the result is worth it. If you’re struggling to pick the right taxi cab insurance, a representative can help.

Find Affordable Taxi Insurance Today

Unfortunately, taxi cab insurance is often expensive, even if you do everything possible to lower your rates. However, having the right car insurance for your taxi cab is vital in keeping your car — and your business — running.

Since taxi insurance can be expensive, you should compare your options. If you go with the first company you look at, you’ll likely pay more than you need to. You can avoid that by looking at as many companies as possible.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption