Taxi Insurance – A SHORT Overview
What is taxi insurance?
Taxi insurance is really a safety cover for taxis. The frequency of road accidents has risen like nothing you’ve seen prior. In such a dangerous scenario, cab drivers and the cab are both at risky since all their working time is spent traversing the high traffic ridden roads. In the event of accidents, taxi insurance provides different types 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 probably to use. Taxi insurance is really 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 case of taxis, the risk is more pronounced because taxis tend to be more exposed to the chance of accident and damage on the road. Further, passengers can’t be held responsible to pay for damage if they are in the taxi when the accident occurs. The entire monetary burden falls on the shoulders of the taxi owner. Taxi insurance provides cover in times of accidents. It offers monetary relief to taxi owners by covering for various damages. Lawsuits cause major expenditure if the other party involved in the accident files it against the cab company. Since lawsuits devote some time and money, having an insurance to fall back on could be 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 in fact the taxi transports passengers only when they have booked beforehand. Public hire services are the services where the taxi may 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 keeping in mind the kind of services that the taxi company mostly provides.
Insurance for the whole taxi fleet
Many taxi companies have more than one vehicle. In order to save costs, insurance can be taken for the whole taxi fleet instead of a single insurance for each taxi. However, insurance firms have limits while giving fleet insurance just like the minimum amount of cars. Even though monthly premium for fleet insurance is a lot more than that for an individual taxi, it is significantly less than the sum of all the plans of individual taxis put together. Therefore, they turn out to be more cost-effective.
Where to find taxi insurance?
Taxi insurance can be found with all major insurance firms. You can also search for automobile insurance online. However, before buying a policy, you have to 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 may be the most important safety feature for a taxi company and therefore, its significance should not be neglected.