A taxi vehicle is a type of commercial vehicle as it is used specifically for work purposes and often owned by a company. Even individual drivers, such as those who drive for rideshare services, may need commercial auto insurance. 

Taxi drivers will be required to carry commercial auto insurance, but it is often going to be carried as a part of a larger taxi insurance package. That is, they will generally buy their insurance either through a taxi insurance specialist, or through a commercial auto insurance provider that offers services specifically designed for taxi drivers. These are the same protections available to anyone taking out a commercial insurance policy. But they will typically be packaged together to make the process easier for cab companies.

What Does Taxi Insurance Cover?

At a glance, taxi insurance does not look so different from any other commercial auto policy. You’re going to have all the same basic coverages:

  • Commercial Auto Liability. This covers bodily injury and property damages — typically with higher limits than a personal auto policy, given the nature of running a business with your vehicle.
  • Comprehensive and Collision Damage Protection. This will help you to cover your losses following an accident or if your cab is damaged in a storm or other covered perils.
  • Property Damage. This can help you to cover your cab should you be involved in an accident where you are, for one reason or another, unable to collect from the responsible party.
  • Bodily Injury and Medical Payments. Medical payments will help you to pay for your own injuries following an accident where you cannot collect from the responsible party. Bodily injury will cover anyone injured in an accident where you are found to be at fault.

Where a taxi policy might differ from a typical commercial policy generally comes down to a couple additional provisions. These are optional, but many cab drivers consider them to be professional necessities. They are: towing and accessories.

Accessories covers the equipment carried in a cab, GPS, mileage meter, radios and so on. Towing will of course cover towing fees. A single tow can cost a cab driver a night’s wages, so many consider this a must on the road.  

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