Taxicab Insurance

So, you’re looking for taxi insurance, well, you’ve come to the right place!

Keeping your taxis properly insured & on the road is the key to success. Without proper insurance, you risk liability against yourself and your business. With over 30 years of experience in the for-hire, livery insurance business, American Business Insurance currently insures over 40,000 vehicles nationwide. We have experience providing customized taxi insurance solutions for all types of taxi business from owner/operators as well as fleets with hundreds of vehicles.

We understand that vehicles & drivers need to be swapped out at a moment’s notice, that’s why we’ve created an online portal for you to submit changes, print Auto Identification Cards & Certificates 24 hours a day, 7 days a week. Also, if you call during business hours, we promise you can speak to a live person every time.

Taxi Insurance can be confusing, but that’s why you have us, the taxi insurance experts! There are many different types of insurance available for taxi companies and at minimum, most City/States, DMVs or other regulatory agencies (such as a Public Utilities Commission) require you to have a certain amount of commercial for-hire auto liability insurance to stay in business.

Below is a list of different types of insurance available for taxi cab owners and what they cover:

Auto Liability (mandatory)

Commercial Auto Liability protects you and your business from financial losses when you are involved in an at-fault automobile accident. Most taxi policies are issued on a scheduled auto basis, which means the vehicle must be on the policy at the time of loss for coverage to apply. If your taxi company is found liable for an at-fault accident, it would pay to fix the person(s) vehicle you damaged, pay for medical bills of the passengers in that vehicle(s) and also for the medical bills of the passenger(s) in your own vehicle. Your commercial taxi insurance policy would also pay for court and legal expense fees if a third party decides to file a lawsuit against you in regards to an auto accident.

  • Auto Liability limits are issued with either a Combine Single Limit (IE: policy written for $500,000 will pay a maximum of that amount per claim) or as a Split Limit.
  • Auto Liability covers Bodily Injury & Property Damage to other party
    • If written as a Split Limit, there are different limit amounts for each auto liability coverage: Bodily Injury Per Person/Max Bodily injury per accident/Max Property Damage per accident. For example, a policy with a split limit of $100,000/300,000/50,000 would pay a maximum of $100,000 bodily per person, per accident with a maximum of $300,000 bodily injury per accident (no matter how many people are in the car). The last number, $50,000 is the maximum it would pay for property damage to others.

Physical Damage Insurance

Physical damage coverage protects your taxi from damages whether or not you are considered at fault for an accident. This coverage is important if you are leasing or financing a taxi cab since you have an outstanding loan or lien on the vehicle. This coverage is mandatory if you want to protect your taxi from damages whether you are considered at fault or not, and also protects the loan or lienholder on the vehicle if not owned outright. All Physical damage policies will have a deductible which usually range from $500-$5,000. Physical damage insurance is written either on a Comprehensive & Collision basis or Collision & Specified Perils. Below are definitions for each type:

  • Comprehensive Physical Damage: covers damage to your taxi caused by events that are out of your control (theft, vandalism, fire, accidents with animals, weather/acts of nature, etc).
  • Collision Damage Protection: covers damage to your taxi caused by you or your driver. It also allows you to get your vehicle fixed quicker if involved in a not-at-fault accident because you can file the claim with your insurance company and start seeking payments to get your vehicle fixed if damages are over your deductible. If the other insurance company accepts liability, your deductible is waived and the insurance company will subrogate (collect money) from the at-fault party. If you don’t have collision coverage, in order to get your car fixed, you’d have to wait for the other party to accept liability and/or pay for the damages yourself while the claim process happens.
  • Specified Perils: covers damages resulting from specific events only that are pre-defined within the policy such as Fire, Theft, Lightening, Windstorm, Smoke, etc.