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Taxi Insurance
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Customizable liability insurance for taxi cabs
Cab drivers can log thousands of miles a week, taking people to airports, hotels, and everywhere in between. Taxi companies need reliable insurance to help keep their cabs, drivers, and passengers safe. As the #1 commercial auto insurer in America,* Progressive Commercial offers taxi insurance designed for the everyday needs of cab companies and individual drivers. That way, you can stay focused on the road and keep your customers moving.
What is taxi cab insurance?
Taxi cab insurance is a type of for-hire livery coverage that helps protect drivers and their vehicles while transporting passengers. Unlike limos and black cars, taxis typically aren't luxury autos. They also deal with fast-changing situations because their fares and pickup locations are often random and unscheduled, which sets them apart from rideshare services. Taxi cab insurance takes these factors into account and helps you get a policy that fits how you work.
Who needs taxi insurance?
You may need commercial taxi insurance if you drive your own cab, run a fleet of taxis, or operate an airport shuttle or local tour service.
Specialized business coverage helps protect drivers and their vehicles when transporting passengers. A standard personal auto policy probably won't provide enough protection and could leave you paying for injuries and damages out of your own pocket.
Types of insurance taxi businesses should consider
Taxi insurance starts with the basic commercial auto insurance required by state law, including liability. From there, you can customize your policy with additional protections based on how you work. The right combination of commercial auto coverages can help protect your drivers, passengers, vehicle, and more.
Liability
A standard commercial auto policy typically includes vehicle liability, which is required by state law. Liability insurance helps pay for bodily injury and property damage you cause to others.
Physical damage
To protect your cab, you can get physical damage insurance with collision and comprehensive coverages. Collision pays to repair or replace your taxi if it's damaged in a crash with another vehicle or object. Comprehensive covers theft, vandalism, broken glass, and certain weather-related events.
Personal injury protection (PIP)
Personal injury protection may be required in some states, especially those with no-fault laws. It can help pay for injuries to you and any passengers, regardless of who caused the accident. PIP offers broad support and can cover medical bills, lost wages, rehabilitation, and other essential services, such as childcare.
In states where PIP isn't offered, you may be able to get medical payments (MedPay) insurance, which helps with medical expenses for injured drivers and passengers.
Uninsured/underinsured motorist
If you get into an accident with a driver who doesn't have adequate liability coverage, uninsured/underinsured motorist coverage can help pay for injuries and property damage for you and your passengers. Requirements and options for this coverage vary by state.
Hired auto
If you lease or borrow your taxis, even on occasion, such as when vehicles are being repaired, hired auto coverage can extend your policy and protect you and your employees when driving those rented vehicles.
Workers' compensation
Taxi companies that employ drivers usually need workers' compensation insurance. This coverage helps pay for medical expenses and lost wages if an employee is injured on the job. Commercial auto insurance doesn't typically cover injuries to employee drivers, so workers' comp is the primary protection for these types of claims. Check workers' comp requirements by state to learn more about the rules where you live.
If your drivers are independent contractors, state-specific options like PIP or MedPay may help cover certain costs. Speak with an in-house agent if you have questions about how your drivers are classified and what coverages apply to them.
What doesn't taxi insurance cover?
Insurance for taxi cabs doesn't cover everything, so it's important to understand your policy. Some common exclusions for taxi insurance include:
- Driving without a valid taxi license
- Personal and off-hours driving
- Mechanical breakdown and wear and tear
- Unauthorized or unlicensed drivers
- Illegal activity and other violations
Taxi insurance requirements
Your insurance company and state may have taxi insurance requirements you need to meet. They can vary based on a variety of factors, such as:
- City and state of operation: Every state has its own set of rules for commercial vehicles.
- Age and vehicle type: Some insurers might not accept older cars or specialty vehicles.
- Driver age and driving history: Younger drivers or those with accidents on record may affect eligibility.
Check with your local licensing or transportation agency to learn more about the state-specific requirements. You can also get help from Progressive Commercial. Start a quote online or call us to chat with an insurance expert who can help find taxi cab insurance that works for you.
Public hire vs. private hire taxi insurance
Cabs that can be hailed on the street are classified as public hire taxis. A private hire car is pre-booked through a licensed company and is prohibited from picking up random fares. Because of the nature of public hire fares, these taxi drivers face special risks and can have different insurance needs.
How much is taxi insurance?
The cost of taxi insurance varies because insurers look at several details about your business and driving habits. These details help determine what your policy should include and how much it may cost. Common features that can influence your rate are:
- Your location
- Your driving record
- Vehicle age and type
- Coverage selections and amounts
Because every business is different, the best way to learn your taxi insurance rate is to start a quote. This helps you compare options and choose a policy that both fits your needs and budget.
Get a taxi insurance quote with Progressive Commercial
Progressive Commercial has flexible options and competitive rates to help you find the right policy for your cab company. Start a taxi insurance quote or call to speak with a licensed expert who can answer your questions and guide you through the process.
See if we currently offer taxi insurance in your state.
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