Why Do You Need a Taxi Insurance?

A taxi is just like a regular car. The only difference is that the taxis are for hire while the personal cars are driven as the private transport for leisure and work. The taxis are for the public to hire in need and are usually hired for a specific time.

For example, a public hire taxi is hired for only a trip from a pickup point to a destination. It can be pre-booked or can be hired off the street. On the other hand, the private hire taxis are only available at pre-book and are offered at a specific rent for specific number of days.

So, when the taxi is just like a regular car, why do you need a taxi insurance for it? Since the taxi insurance has higher premium than the regular cars, the drivers may tend to rely on the car insurance for their taxis. But, it can put you in difficult situation at the time of claim.

Here is why you need a specialized taxi insurance to cover the damages of your cab.

1-      More Miles Driven

A taxi is driven more miles than the average car. It is for hire and a taxi driver may give more than 10 rides in a day which obviously means extensive travel. Contrastingly, a regular car is often driven from work to home or from university to home with few pleasure trips. As the miles increase, the cost of taxi insurance increases. It can also cause trouble as the car insurance is only valid till a specific limit of miles.

2-      Passenger Insurance

Taxis are used to give rides to the passengers. The passengers hire taxis and travel on them. In case of an accident or collision, not only the other car is a third part but your passenger is also a third party requiring compensation. So, a taxi insurance’s liability cover also includes passenger protection that can pay for the medical bills.

3-      Expensive Modifications

Many times, a taxi is modified to facilitate the passengers. The modifications can include installing a privacy screen between driver and passenger or making the car accessible for wheelchair. These modifications increase the value of the car which affects its insurance premium.

So, the taxi insurance also covers the damages or replacement of modified parts.