Taxi Insurance – A Brief Overview

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What is taxi insurance?

Taxi insurance is 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 high risk since all their working time is spent traversing the high traffic ridden roads. In the event of accidents, taxi insurance provides different kinds of covers like road damage, car damage, alternative party damage, passenger injury cover and legal cover. Taxi owners can choose covers that they feel they are most likely to utilize. Taxi insurance is a safety net for taxis and their drivers.

What is the need of auto insurance?

The answer to this question is the same as 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 highway. Further, passengers cannot be held responsible to cover damage if they are in the taxi once the accident occurs. The entire monetary burden falls on the shoulders of the taxi owner. Taxi insurance provides cover in times of accidents. It provides monetary relief to taxi owners by covering for various damages. Lawsuits cause major expenditure if another party involved in the accident files it contrary to the cab company. Since lawsuits devote some time and money, having an insurance to fall back on can be quite 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 the taxi transports passengers only if they will have booked beforehand. Public hire services will be the services where the taxi may be booked in either advance or hailed off on the road. Insurance is provided for both most of these taxis services. Generally, private taxi hire insurance is cheaper than public hire insurance. The insurance coverage has to be chosen remember the sort of services that the taxi company mostly provides.

Insurance for the whole taxi fleet

Many taxi companies have significantly more than one vehicle. In order to save costs, insurance could be taken for the whole taxi fleet instead of a single insurance for each taxi. However, insurance companies have limits while giving fleet insurance like the minimum amount of cars. Although the monthly premium for fleet insurance is a lot more than that for an individual taxi, it is less than the sum of all of the plans of individual taxis put together. Therefore, they grow to be more cost-effective.

Where to find taxi insurance?

Taxi insurance are available with all major insurance companies. You can also search for automobile insurance online. However, before buying a policy, you should consider several factors like your allowance, kinds of covers that you will require, the condition of the place where your service operated and the expertise of one’s drivers. Taxi insurance is the most important safety feature for a taxi company and therefore, its significance should not be neglected.

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