Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Taxi Business InsuranceIf you are a taxi driver, or if you operate a taxi fleet, you are legally required to hold an auto insurance policy. In many states and cities, you need to have other types of taxi business insurance as well.

Even if you are not legally required to hold certain types of insurance, it may be a good idea to protect yourself against accidents or other disasters that will cause you to lose business or money. For the risk involved in driving strangers around busy streets, protection is essential.

To mitigate the risks of your business compare quotes here by typing your ZIP code into the FREE rates tool now!

As a taxi driver or business owner, you have a lot of responsibility for getting people from one end of a city to another. You should protect yourself and your passengers in the event of any type of accident. Not only does the law require it, but it is just good business sense.

Why Get Taxi Business Insurance

Some drivers believe that it is enough to simply save up a bit of money to pay for any unexpected disasters. However, this puts you in direct conflict with the law. If a police officer stops your cab, you or your employed driver will be required to show proof of insurance in addition to license and registration.

Without the proper types of taxi business insurance, you may be liable for extensive fines at any time.

This is especially true in the event of an accident, as more legal scrutiny will be placed on your lack of insurance. You may even lose your taxi license and your job.

Taxi Driver Business Insurance

Although some statistics find that taxi drivers are less prone to accidents than other drivers, you need to plan on the worst.  Furthermore, you never know how much a vehicle accident will cost. An insurance claim by a passenger hurt in an accident, in addition to the cost of repairs to your cab or to other cars involved in an incident, may cost more than you have saved up.

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Information About Taxi Insurance

It is important to note that getting taxi insurance is often more expensive than just getting a standard policy for auto insurance.

Depending on the rules and regulations in your part of the country , your insurance policy may cover a larger range of business-related situations.

These can include lawsuits by passengers or unexpected breakdowns that keep you from making money.

Additionally, taxi insurance is more expensive because taxi drivers spend a lot of time on the road. This puts you at higher risk of getting into a motor vehicle accident and increases the average cost to insurance companies. Even if you are a good driver, insurance companies have to charge premiums according to averages and overall risks.

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Tips for Getting Taxi Insurance

Your goal should be to get a comprehensive taxi business insurance policy with affordable premiums. This list of suggestions will help guide you through the process of finding taxi insurance.

  • Taxi Business Insurance For Driver

    Price Comparison – You can always go to local insurance offices and surf the web to look at the policy options of different insurance providers. However, this takes a lot of time, especially because you will have to fill out extensive forms on each site before receiving a quote. Our comparison web app automates this process, sending your information to dozens of insurance providers in your area. You can then compare policies and choose the one that meets your needs.

  • Look Into Discounts – Some taxi insurance companies offer special discounts if your taxi business meets particular guidelines. If you have a taxi fleet, if you’re a member of a local, regional or national organization, or if you’re driving a particular type of vehicle, you could be eligible for discounts with certain companies.
  • Ask Plenty of Questions – Even with our taxi insurance comparison tool, you should still call or email an insurance company representative to make sure that the policy is actually what you think it will be. Make sure to ask about additional drivers, comprehensive coverage, collision insurance and passenger coverage in addition to standard liability insurance.
  • Check the MVRs of Insured Drivers – Most necessary for individuals starting a taxi fleet, hiring a high risk driver with a poor motor vehicle record (MVR) may cause your insurance premiums to spike. Always double-check your drivers’ MVRs before finalizing any deal.

Types of Taxi Business Insurance

  • Liability Insurance – This is generally required by law, and it consists of a policy that will pay for any damages to people and property caused by a traffic accident. You may be able to get liability insurance on its own, or you may be able to bundle it into a comprehensive taxi insurance plan.
  • Private Hire Business Insurance – Occasionally, but not always, required by law, this policy protects against basic issues that might result from being a taxi driver. Its main role is to be a liability insurance policy for your passengers, but some private hire policies offer other benefits. Read this blog for a discussion on this type of coverage.
  • Business Insurance For Taxi Drivers

    Public Hire Business Insurance – Public hire insurance is just like private hire, except it protects against a variety of issues that result from being a taxi driver in a large public area like a city. Private hire taxi passengers are only protected if they pre-book the taxi in advance, whereas public hire taxi passengers are protected if they pick up passengers on the street. Public hire insurance is legally required in many urban populated areas.

  • Fleet Insurance – If your business consists of a fleet of taxis, you may need to get a fleet insurance package. It consists of business coverage for many vehicles rolled into one easy payment.
  • Collision Insurance – This optional coverage will pay for damages to your car or person if you collide with an immobile object like a highway divider, lamp post or street sign.
  • Comprehensive Insurance – This optional coverage will pay for damages to your car resulting from natural disasters, theft, vandalism or other unforeseen circumstances.

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Compare and Save

As a taxi driver or fleet owner taxi driver insurance is required be in line with the law and to protect your business. The best way to save money on car insurance is to compare prices with our free tool.

Enter your ZIP code into the FREE quotes tool now to get the insurance rates you need!