Taxi Insurance
Operating a taxi service comes with risks, from accidents to passenger disputes. Taxi insurance isn’t just a legal requirement; it’s essential protection for your business. Whether you drive solo or manage a fleet, the right coverage shields you from vehicle damage, liability claims, and even cyber threats.
Choose the right coverage from trusted insurance providers.
Why Do Taxi Businesses Need Insurance?
From my experience managing a small fleet of taxis, I quickly learned that insurance is not just a legal formality; it’s a business essential. States and municipalities strictly require auto coverage for all for-hire vehicles, including taxis, which is the starting point.
But beyond meeting legal demands, the right types of taxi insurance go much further. They cover not only vehicle-related risks but also tech-related issues like data breaches, as well as unexpected events such as accidental damage to a passenger’s property, ride delays, and even miscommunications that can lead to disputes or lost business.
Having seen how one missed trip can turn into a serious complaint, I strongly believe that comprehensive coverage is not optional; it’s your safety net.
What types of insurance do you need for taxis?
These insurance policies cover common risks faced by taxi companies.
Business owner’s policy
This policy conveniently bundles commercial property and general liability insurance into one cost-effective plan for dealers. A BOP is ideal for securing auto shop insurance and shielding businesses from financial losses.
Under this plan
Customer injuries
Damaged customer vehicles
Damaged business property
Commercial umbrella insurance
A policy like this boosts coverage by increasing the limits of general liability insurance, commercial auto insurance, and employers’ liability insurance. It helps protect businesses from expensive lawsuits related to multi-vehicle auto accidents, customer injury lawsuits, and employee injury lawsuits.
Under this plan
Customer injury lawsuits
Employee injury lawsuits
Multi-vehicle auto accidents
Commercial auto insurance
A policy designed for dealers and repair shops helps pay for property damage and medical bills after an accident. It is required in many states for businesses that own cars.
Under this plan
Weather damage
Vandalism and theft
Car accident repair costs
Cyber insurance
A policy like this helps protect automotive businesses from financial loss after data breaches or cyberattacks. It’s recommended for any business that stores customer credit cards or other personal information.
Under this plan
Fraud monitoring services
Data breach investigations
Customer notification expenses
General liability insurance
Under this plan
Accidental vehicle damage
Customer injuries at a repair shop
Slander and other advertising injuries
Worker’s compensation insurance
Under this plan
Employee medical expenses
Partial wage reimbursement
Lawsuits over employee injuries
How much does taxi insurance cost?
Running a taxi business means keeping costs under control — and that includes insurance. If you’re a driver who works independently, you can usually expect to pay less compared to a company with several employees.
- The owner of a livery business often calculates insurance costs based on various factors.
- These factors can affect the cost of business insurance, making it important to know what influences the price.
- Some common factors include the type of service—whether it’s public hire or private hire taxi service.
- The value of your taxis and other property also plays a major role.
- Don’t forget that business revenue, number of employees, and their driving records are also part of the calculation.
The types of insurance purchased, policy limits, deductibles, and your claims history all matter.
How do I get taxi insurance?
Getting taxi insurance is straightforward, especially if you’re ready with your business details. Whether you’re a sole proprietor or manage a team of employees, you can get covered quickly and easily.
- The first step is to fill out a free online application that collects basic information about your small business, like revenue and number of employees.
- Once submitted, you can compare taxi insurance quotes from multiple providers and choose a policy that fits your needs.
- After picking your plan, simply pay for your policy and download a certificate — all done online.
Eagle Nation’s licensed agents team up with trusted U.S. providers to offer smart livery insurance solutions for every kind of taxi company.
- Whether you’re just starting out or already running a fleet, you’ll get the protection needed to handle risks and run your business with confidence.
Two ways to start your coverage
Quotes online
Talk to an agent
Verified business insurance reviews
Hear from customers like you who purchased small business insurance.
FAQs about taxi insurance
If you run a taxi service, your business-owned vehicles must have commercial auto insurance. Each state has its own minimum requirements for auto liability insurance, and your policy must meet those standards.
- In some areas, especially cities or counties, for-hire transportation companies like Uber, Lyft, or taxi services might need to meet extra rules.
- These rules often depend on:
- Where you operate
- Type of vehicle
- Seating capacity of the vehicle
- Where you operate
For example, in New York City, the Taxi & Limousine Commission (TLC) has different insurance rules for black cars, luxury limos, and other for-hire vehicles based on how many passengers the vehicle can carry.
If you’re a small business with low risk, you don’t have to pay a lot for taxi insurance. Here’s how you can lower your costs:
- Shop around before choosing a policy. Different insurance companies charge different rates for the same coverage.
- Pick a higher deductible to lower your premium. Just remember — you’ll need to pay the full deductible before the coverage kicks in.
- Go with lower policy limits if you're trying to cut costs. Just make sure the coverage is still enough for a lawsuit.
- Pay annual premiums instead of monthly. This often comes with a discount.
- Remove coverage options you don’t need. For example, if you don’t need protection from rare events like falling branches or collisions with animals, skip comprehensive coverage.
Even if you're trying to save money, don’t go too cheap a lawsuit could end up costing more than your entire policy. Having the right insurance protects you from unexpected costs that could bankrupt your business.
Top transportation fields we insure
Don't see your profession? Don't worry.
We insure most businesses.