Approximately 7 out of 10 private cars are not usually insured, although this is usually a requirement to travel on federal highways, as well as being a sign of responsibility. Generally, it occurs with a higher rate in the case of public service cars such as taxi businesses.
Something that is considered when offering insurance, whether for a private vehicle or a public service vehicle, is the risk of suffering an accident. For this, the time the vehicle remains on the street is taken into account. Once that information is clear, the companies establish rates according to the probability of an accident.
If you own or plan to open a company that offers taxi services, it is important that you know that you are legally required to take out a civil liability insurance policy. If you do not have a valid policy, you will not be able to circulate. For this reason, this article will help you to be clear about what taxi insurance is, what requirements you need to acquire one, its advantages and much more.
What does taxi insurance usually cover?
It is extremely necessary that taxis have current insurance to cover civil liability, since in this way they cover the damages that may be caused to passengers and third parties in their persons or vehicles.
The insurance that is normally offered for taxis has coverage in three areas:
● Passengers: which offers compensation that is only valid while they are on board the vehicle. It includes: bodily injuries produced as a result of an accident.
● Medical assistance: this must include surgeries, hospitalization, nursing, ambulance, prostheses, in addition to the medicines required after an accident in the unit.
● Compensation due to partial/temporary/permanent disability: this would cover funeral expenses and compensation for death resulting from a traffic accident. (The user dies on board the insured vehicle or due to an accident caused by it).
Some taxi insurance policies may contemplate compensation for loss of luggage or belongings. As well as they assume civil responsibility for damages caused by the unit. Legal defense to the driver, bonds or guarantee bonds for the damage caused by the driver. Medical expenses, injuries and death of the driver, plus many more elements.
Relevant taxi insurance details
All insurance companies have a section of general conditions and taxi insurance is no exception. It establishes some criteria that you should take into account when hiring auto insurance for a taxi. Some of these criteria are the following:
● Policy coverage starts from the moment the passenger gets into the car. It ends when the passenger leaves the unit. In other words, the service must be running.
● The company maintains responsibility until the moment in which the insured sum established in the contract is exceeded. Once the limit has been exceeded, the driver or owner of the unit must pay the excess. Said decision will be made by the relevant authorities.
● A factor to take into account is the age of the vehicle, because in many cases for the taxis to be insured/renewed, they must not be more than 10 years old.
● A mandatory requirement is that in order to take out insurance, the vehicle must have complete and current documentation. From the plates issued that accredited it as a passenger car and much more. It should be noted that private cars cannot be subject to this type of coverage.
Insurance of this type only includes the so-called free taxis, airport taxis, tourism taxis and taxi businesses. The passenger service through mobile applications has other types of coverage that you must hire with the help of the insurance company.
How much does it cost to insure a taxi business?
Among the most common concerns of businesses that venture into taxi services, is precisely the price offered by taxi insurance. Having a policy that gives them peace of mind and guarantees a good service for their main work tool is important, but also achieving a good income is essential.
As we mentioned before, taxis are more likely to suffer accidents and those risks will be considered in the price that the premium will have. There are various insurance policies for taxis that are cheap and others that have more coverage that raises their price. However, all-risk taxi insurance is not the same as a policy with third-party or civil liability coverage and basic guarantees.
Advantages of acquiring insurance for vehicles that offer taxi services
Although taxi drivers face various risks on a daily basis and the possibility of suffering an incident is highly probable, securing a taxi for a moderately affordable cost is not an impossible mission. Even with an excellent taxi insurance company, you will be able to modify and shape the policy according to your needs and the solutions that it can offer you. Acquiring taxi insurance will allow you:
● Protect the patrimony of the insured (in case of traffic accidents that cause damage to third parties), it will also cover the damages or theft suffered by the insured vehicle.
● Covers and coordinates the assistance services that the insured may need (such as legal assistance, transfer of the vehicle by tow truck or attention to minor breakdowns that can be solved by means of the car workshop service).
The main reason why taxi policies are usually more expensive than regular policies and it can even be difficult to find cheap and efficient insurance, is that the vehicles used for these services usually spend many hours a day on the road. That is, they are more exposed to damage in accidents. If you already have a taxi business or want to venture into this complex market, it is necessary that you contact a taxi insurance company and purchase the most convenient policy for your company.