subject: Taxi Insurance Will Cover Your Transportation Business [print this page] Taxi insurance is a form of transportation insurance that is typically supplied under a policy similar to those who drive limousines, buses and trucks for delivering people from one destination to another.
This type of insurance is a particular niche within the auto insurance industry that specifically applies to transportation drivers and companies. Whether you are an independent contractor who owns a single vehicle you use to transport your passengers, or you have a fleet of vehicles with employees who work for you, you will need insurance coverage to protect yourself in case of an accident.
Who needs taxi insurance?
The transportation niche provides insurance for specific people. This type of insurance is necessary for anyone who runs a business where people are being transported from one place to another under a private hire. For example, black cabs, chauffeurs, public hire taxis, private hire taxis, bus services and limousine services all fall under the category of a taxi business and all need specific insurance coverage designed for that industry. In the UK, insurance is required by law, and it will protect you against liability, will pay for any vehicle damage that is incurred during an accident and will cover any claims made against you from your fare if there is an accident.
How much insurance is needed?
When shopping around for taxi insurance you will need to get a quote for the amount of insurance that is necessary for your particular business and protects you against your potential liability. For those who are looking to save as much money as possible, the minimum requirements may be purchased. This will save you money on premiums but it will leave you open to possible financial liability in case of a claim. Comprehensive insurance will cover more of your potential loss but it is also more expensive. Because of the risks involved with for-hire transportation, premiums are historically high. This often translates into taxi services getting minimum coverage. Weigh your options carefully and purchase the amount of insurance you can comfortably afford while protecting as much of your interests as possible.
Shopping for insurance to get the best coverage
Cost is certainly a primary consideration when looking for taxi insurance to cover your taxi business. This is especially true in an economy that is not as strong. Companies are finding it more difficult to keep up with the cost of full coverage insurance when the income that is generated wanes. It is important to shop around to multiple companies to get competitive quotes. However, in addition to cost there are other considerations. It is important to select an insurance company that specialises in transportation insurance and that has a solid reputation.
Saving some money by going with a company that does not specialise in transportation insurance may seem smart at first, but if there is a claim, this decision may backfire. A company that has experience dealing with the specific issues surrounding the taxi industry may save you money in the long run if there is ever an actual claim. You will get positive customer service and get your claim resolved quickly.
by: Neil Anderson
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