Large numbers of taxicabs and their drivers hit the roads of the nation on a daily basis.
These taxicabs perform a vital service for the communities that they are a part of, and without these services, many members of these communities would find it very difficult to get around.
That being said, taxicab drivers spend extended amounts of time on the roads, far more than regular drivers. This extended time on the road means that taxi drivers can face more risks than average drivers, and thus often require special car insurance policies.
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Car Insurance Considerations for Taxi Cab Drivers
Taxi drivers may be some of the most experienced, knowledgeable, and skillful drivers on the roads. Nevertheless, they still need to be aware of car insurance laws and regulations that affect them as they ply their trades.
The types of car insurance coverage that will be required can vary depending on whether a large firm or a single operator is involved.
If a large firm owns many vehicles and leases them out to different drivers on a daily basis, commercial insurance coverage will be necessary.
Commercial insurance swings into action when company vehicles that are covered by such coverage sustain damage while conducting company business. Commercial auto insurance plans can cover both dedicated company vehicles or personal vehicles that are used for company business.
Commercial insurance policies take care of property and bodily liability costs, as well as covering potential costs that are unique to commercial vehicles like taxis.
Such policies sometimes offer up to $1,000,000 in coverage for specific kinds of liability, such as bodily injury liability.
Business insurance plans (BOPs) are special insurance plans that are made to serve drivers who use their personal vehicles for work purposes. Having a BOP in place provides extra levels of coverage that often far exceed the coverage that is offered by personal car insurance policies.
Drivers who own their own cab companies and use their personal vehicles for this purpose are often well-served by investing in BOPs.
Ride-sharing service drivers face another set of car insurance-related challenges. Many ride-sharing services like Lyft and Uber classify themselves as transportation network companies (TNC’s) in order to avoid local liveried-vehicle regulations and also to avoid paying insurance costs for a business vehicle.
This TNC definition lies somewhere in between that of a regular cab and a personal vehicle, and depending on the circumstances of an accident, this definition can leave ride-sharing service drivers liable for huge amounts of money.
Ride-sharing drivers who wish to avoid such liabilities need to know when they are covered by their ride-sharing service insurance policy and when they are not.
For example, some ride-sharing services do offer insurance coverage to their drivers, but only when a paying passenger is actually inside the vehicle in question.
At all other times, the ride-sharing service driver in question is only covered by their personal insurance, which can be problematic if it is discovered that they were driving their vehicle for business purposes. Such drivers may be especially well-served by taking out BOPs that cover them while they are on the clock.
Coverage Options That May be Useful for Taxi Cab Drivers
Besides the typical supplemental coverage options, there may be a couple more that you didn’t think of that might benefit taxi drivers, such as:
– Additional or Custom Equipment Coverage
Taxicabs are used in the service of the public and have many accessories that can be damaged while engaged in such service. Some parts that could be plausibly damaged can include:
- Navigation equipment, etc.
Many of these accessories can be quite expensive to purchase, fix, or replace, and can leave a big hole in the pockets of drivers who choose to go without insurance coverage.
Not only that, but a vital accessory like a radio that sustains damage during business operations can literally put drivers out of business. It, therefore, makes a lot of sense for taxicab drivers to take steps to attach custom equipment endorsements to their comprehensive policies.
They then can often save on such policies by using car insurance comparison shopping websites.
– Collision Deductible Waiver (CDW)
Taxicab drivers who are operating as a single-person business would do well to consider getting a CDW.
Collision deductible waivers allow taxi drivers to waive their deductible payments if they get into car accidents with underinsured or uninsured drivers.
A collision deductible waiver can save taxi drivers thousands of dollars in deductible costs. Remember as well that many taxicab insurers require policyholders to have collision and uninsured driver policies in place before purchasing a CDW.
Either way, taxi cab drivers deserve superior car insurance coverage.
Taxicab drivers and people who drive for ride-sharing services play a vital role in the nation’s transportation system. They spend days, nights, weekends, and holidays at work so that others may both work and play.
They also face special risks. Although, taxi drivers who make good use of car insurance comparison shopping websites can mitigate these risks and save money in the process.
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