Cheap Taxi Auto Insurance in 2024
Auto insurance for taxi cabs comes with unique requirements, but rates are affordable. The average taxi cab insurance policy costs $86/mo for minimum liability, though quotes vary significantly by company. If you have a fleet, you may need general liability and commercial car insurance for taxis.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Jul 17, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jul 17, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Taxi cabs must meet local insurance requirements before driving or picking up passengers
- The average taxi policy costs $86 a month, but some plans are much more expensive
- Taxi drivers can save on insurance by taking advantage of discounts, picking the right coverage, and comparing auto insurance quotes online
Auto insurance for taxi cabs is similar to commercial auto insurance for businesses. Taxi insurance must meet local laws and the general requirements of the industry, which will vary by state.
Taxi cab insurance is not like rideshare insurance, which is specifically for people who use their personal vehicles to deliver food or drive for Uber or Lyft, or limo insurance, where the car’s length and value determine rates. Auto insurance rates for taxi cabs are based predominantly on location and annual mileage.
Read on to learn more about taxi cab insurance, then compare rates to find the most affordable auto insurance policy possible.
Auto Insurance Requirements for Taxi Cabs
Like regular car insurance, taxi cab coverage must meet specific requirements. However, states regulate taxi cabs more heavily than insurance for personal vehicles.
Every taxi driver will see different requirements for their insurance based on several factors, including:
- Location: States and cities have different rules for how much insurance a taxi driver needs to carry before they can work.
- Vehicle: Not all car types can serve as a taxi — some makes and models, along with older cars, might not be acceptable.
- Driver: Your age and driving history play an important role in your insurance. Taxi insurance companies reject drivers with too many incidents in their records.
If you’re unsure how much insurance you need, contact your DMV. They can tell you exactly what you need to drive. Alternatively, you can ask your insurance company for more information.
Age Restrictions on Auto Insurance for Taxi Cabs
Insurance companies have different eligibility criteria, but most taxi drivers must be between 25 and 65. Insurance companies set these limits to reduce the chance of accidents — statistically speaking, younger and older drivers are more likely to cause accidents.
Additionally, taxi companies often have age restrictions. For example, people over 65 might need to pass a medical exam or get a doctor’s approval before driving.
Optional Auto Insurance Coverage for Taxi Cabs
Although you only need to meet minimum insurance requirements, having more coverage is recommended. Taxis often drive thousands of miles yearly, exposing them to a higher risk of accidents. Collision and comprehensive insurance are some of the best options for additional insurance:
- Collision auto insurance: Pays for repairs your taxi might need after a collision, even if the accident was your fault
- Comprehensive auto insurance: protects your taxi from danger outside of accidents, including vandalism, theft, weather, and fire.
- General liability insurance: Protects you from lawsuits by covering legal fees and other expenses
- Worker’s compensation coverage: Helps pay for medical expenses if an employee is injured on the job
New companies pay higher rates than older ones due to a perceived lack of experience. However, your rates will lower once your company shows a history of safe practices.
Choosing the least amount of insurance possible can be tempting to keep your rates low. However, this is a dangerous game that can cost thousands of dollars. Having ample coverage will keep your taxis safe if you can afford it.
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How Much Auto Insurance for Taxi Cabs Costs
Like regular car insurance, rates vary by taxi cab insurance company. The average price of taxi insurance is $86 a month, but costs can be much more or less.
Multiple factors affecting auto insurance determine how much you’ll pay for your private-hire taxi insurance, including:
- Coverage levels
- Location
- Driving record
- Business hours
- Annual mileage
- Taxi make and model
Of course, you’ll also pay more for every car you add to your policy. If there are enough cars, insurance for taxi companies might come with a fleet or multi-vehicle auto insurance discount.
Check the rates below to get an idea of how much you might pay for taxi insurance.
Another factor that affects your rates is how you choose to buy your policy. For example, many taxi companies buy insurance through a broker, but you can also talk to a representative or purchase directly from a website.
Rideshare Auto Insurance vs. Taxi Auto Insurance
Though they cover similar businesses, taxi coverage and rideshare insurance are different types of auto insurance.
Most insurance companies sell rideshare insurance as an add-on rather than a separate policy. However, you’ll need a separate policy if you run a taxi business.Michael Leotta Insurance Operations Specialist
Taxi companies traditionally have cars used only for business. Rideshare companies like Lyft and Uber rely on their drivers’ vehicles, so they don’t need to buy a fleet. Rideshare insurance gives your personal car commercial coverage while you work.
How to Save Money on Auto Insurance for Taxi Cabs
Even if you need a lot of coverage, there are still ways to keep your rates low. Consider the following tips to lower your premiums:
- Choose the right car. Some makes and models are more affordable to insure. Taxi cab insurance companies give reliable, safe vehicles the best rates.
- Only buy the coverage you need. Although you should buy enough coverage for your taxi, you don’t want to go overboard. Only buy what you need to keep rates low.
- Find discounts. Some of the most popular discounts for taxi drivers are multi-vehicle, defensive driver, executive driver, and business owner discounts.
- Raise your deductible. Your auto insurance deductible is the amount you pay before insurance kicks in. It comes with a financial risk, but raising your deductible lowers your rates.
- Hire safe drivers. Companies that have drivers with incidents on their records pay more for insurance. You can keep costs down by hiring drivers with clean records.
Balancing your policy’s value with how much it costs can be tricky, but the result is worth it. If you’re struggling to pick the right taxi cab insurance, a representative can help.
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Get the Best Auto Insurance for Taxi Cabs
Unfortunately, taxi cab insurance is often expensive, even if you do everything possible to lower your rates. However, having the right commercial auto insurance for your taxi cab is vital in keeping your car — and your business — running.
Since taxi insurance can be expensive, you should compare your options. Use our comparison tool to get quotes from the best commercial auto insurance companies in your area to get the best rates on your taxi coverage.
Frequently Asked Questions
Where can you buy auto insurance for taxi cabs?
Many popular insurance companies sell taxi insurance, so compare auto insurance quotes online from multiple insurers to get the best rates possible.
What insurance do you need for a cab driver?
The insurance you need as a taxi driver depends on several factors. These factors include local laws, what car you drive, your driving record, and business hours.
How much is auto insurance for a taxi driver?
Auto insurance for taxi cabs costs around $86/mo, but your rates will vary based on where you live and the kind of taxi you drive.
How much is taxi insurance in Florida?
Taxi auto insurance rates in Florida are as low as $67/mo, but you should get online insurance quotes by ZIP code to find out how much Florida taxi insurance costs in your city.
Why is auto insurance for taxi cabs so expensive?
While there are several reasons for higher prices, the main reason is that taxis drive substantially more than normal drivers. Other reasons include more exposure to traffic, late night hours, and higher chances for the driver to become distracted.
Can you drive a taxi with personal auto insurance?
Standard insurance doesn’t cover taxis, so you can’t drive a taxi if you only have a regular policy. Since taxis are for business, you need a commercial policy to drive a taxi.
Is special auto insurance required for taxi cabs?
Yes, taxi cabs typically require special insurance coverage known as commercial auto insurance. This type of insurance is specifically designed to protect taxi cab owners, drivers, and passengers from the unique risks associated with operating a taxi service.
What does taxi insurance cover?
Commercial auto insurance for taxi cabs generally provides coverage for liability, collision, and comprehensive damage. It protects against bodily injury or property damage caused to others while operating the taxi cab. Additionally, it typically covers damage to the taxi cab itself in case of accidents, theft, vandalism, or other covered perils.
Are taxi drivers insured?
All taxi drivers must have up-to-date insurance policies on their commercial vehicles to legally drive.
How does driving record affect auto insurance for taxi cabs?
Points or incidents on your record, like speeding tickets, reckless driving charges, or a DUI, can significantly increase your rates. Taxi drivers with too many incidents on their records will likely lose their insurance, making it illegal for them to drive. Taxi companies are also less likely to employ you if you have a bad driving record.
What is private hire taxi insurance?
Private hire taxi insurance is for hired drivers pre-booked through a private service rather than a taxi company.
What happens if a taxi driver crashes?
Depending on the fault laws in the state, the taxi driver will file a claim either with their commercial insurance company or the at-fault driver’s insurer. If the taxi company owns the taxi or fleet of taxis, the company will receive the claim payout.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
