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 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 they feel they are most likely to utilize. Taxi insurance is a back-up for taxis and their drivers.
What is the need of auto insurance?
The answer to this question is equivalent to for the question regarding necessity of insurance for an exclusive car. In the event of taxis, the risk is more pronounced because taxis are more exposed to the chance of accident and damage on the highway. Further, passengers can’t be held responsible to cover damage if they’re in the taxi when the accident occurs. The complete monetary burden falls on the shoulders of the taxi owner. Taxi insurance provides cover in times of accidents. It provides monetary relief to taxi owners by covering for various damages. Lawsuits cause major expenditure if another party involved in the accident files it contrary to the cab company. Since lawsuits take time and money, having an insurance to fall back on can be quite a huge respite in scorching situations.
What are the types of taxi insurance?
Auto insurance is of two types – private hire insurance and public hire insurance. Private hire services are services where 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 these kinds of taxis services. Generally, private taxi hire insurance is cheaper than public hire insurance. The insurance policy needs to be chosen remember 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 8 seater taxis to save costs, insurance could be taken for the whole taxi fleet rather than a single insurance for every taxi. However, insurance companies 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 a single taxi, it is less than the sum of all of the insurance policies of individual taxis put together. Therefore, they grow to be more cost-effective.
How to locate taxi insurance?
Taxi insurance can be found with all major insurance companies. You can also search for automobile insurance online. However, before investing in a policy, you should consider several factors like your budget, kinds of covers that you’ll require, the condition of where your service operated and the expertise of your drivers. Taxi insurance is the most significant safety feature for a taxi company and therefore, its significance should not be neglected.