Whether you own or lease a taxi cab, the vehicle itself is a critical part of your business operations. Without it, you are unable to conduct daily business or earn any income. Keeping your taxi protected through commercial auto insurance helps ensure the successful operation of your business and allows the ongoing income flow.
Keeping your taxi fully operational should be number one priority. Without it you cannot pick up customers that flag you down on the street or even schedule pickup requests. Regardless of how your taxi service business is structured, as the owner you know that you need the best possible auto insurance protection. The auto insurance you choose for yourtaxi cabneeds to protect you from the largest financial losses that you may enquire, therefore allowing your company to continuously prosper even when unexpected events arise. Some of the types ofbusiness auto insuranceyou should carry on your taxi includes:
- Liability Insurance– Commercial auto liability insurance protects you from financial losses when you are at fault in an auto accident. This coverage applies to taxi cabs that you own, lease or rent. If you get involved in an auto accident with your taxi and are found to be at fault, you will be legally liable to pay for injury and damages for the other vehicles and persons involved. You commercial auto liability coverage will also help pay for court or legal defense fees if the other party decides to file a lawsuit against you.
- Bodily Injury– When you are at fault for an auto accident with your taxi cab, the bodily injury portion of your liability policy will pay for related medical bills and expenses for all other involved parties. Bodily injury coverage pays up to a maximum amount per person and accident, and it can cover medical and recovery-related expenses. For example, if the other party in the accident is taken to the hospital by ambulance or helicopter, the bodily injury portion of your liability coverage will pay for the cost of transportation, emergency medical care expenses and follow up doctor or medication costs.
- Property Damage– The property damage portion of your liability auto insurance policy pays for physical or property damages sustained by the other party in the auto accident. If you were at fault for the accident, property damage coverage will pay for the repairs or replacement of the other person’s vehicle or property depending on the accident’s situation.
Medical Payments–When the other party in an auto accident is not insured or is underinsured, they may be unable to pay for the medical bills that you have due to the accident. By carrying medical payments coverage as part of your uninsured motorist policy, your insurance can pay for or supplement the payments for your medical care expenses and needs. Medical payment coverage options vary from one state to another. Contact one of our licensed representatives for help in determining the medical payments options available to your business today.
Physical Damage Insurance– Physical damage insurance protects your taxi from damages inflicted by a number of different ways. This commercial insurance coverage is very important if you are leasing or financing your taxi cab since you have an outstanding auto loan or lien on your vehicle. This coverage is mandatory if you want to protect your taxi cab from all kinds of accidents and unexpected events such as fire, theft or vandalism.
- Comprehensive Physical Damage Protection– Comprehensive protection pays the expenses if your taxi is ever damaged by something or someone other than a collision. For example, if your taxi is vandalized, comprehensive auto insurance will pay for the cost of repairs. It also pays if your taxi is stolen, or even if it catches on fire. The damages caused by a tree falling onto the cab during a wind storm would also be covered under the comprehensive physical damage coverage.
- Collision Damage Protection– If your taxi is involved in a collision event such as running into a telephone pole, collision damage protection will pay for the cost of repairs. This section of the physical damage insurance coverage also pays for repair expenses when your taxi is involved in a roll over event.
- Specified Peril (CAC)– CAC, or Fire and Theft with Combined Additional Coverage, provides you with commercial auto insurance for specific types of perils and losses. This policy may cover a non-collision event such as a tree falling on your cab, but it may not cover windshield damage or flood damage if they are not specifically listed in your policy contract.
Uninsured or Underinsured Motorist–If your taxi is involved in an auto accident with a person that does not carry basic liability coverage, you will have to pay for the repairs to your cab out of your own pocket. Some people carry liability coverage, but it may not be enough coverage to pay for all of the damage expenses you incur. You can protect yourself from these situations by carrying uninsured and underinsured motorist coverage. The commercial auto insurance options for uninsured and underinsured motorist protection vary by state, and may include the following:
- Bodily Injury– Bodily injury coverage on an uninsured motorist policy protects you from the expenses involved if you or your passengers sustain bodily injury from an auto accident. If the person responsible for the accident does not have auto insurance or if they do but it’s not enough to pay for the entire expense, the bodily injury portion of your policy can cover the deficit and pay for all the medical and hospital bills.
- Property Damage– Property damage coverage pays for the expenses involved with repairing or replacing your taxi when it is involved in an auto accident and the responsible party does not have any or enough liability insurance to cover all the damages. Property damage protection can protect you if your taxi is involved in a hit and run accident where you were only able to see the license plate number of the hitting vehicle, and in some states it may also cover damages caused to personal property.
- Collision Deductible Waiver (CDW)– In order to qualify for a CDW you must carry Uninsured/Underinsured Motorist Bodily Injury and collision coverage on your taxi policy. This coverage waives your insurance deductible in the event the driver at fault is not insured or is underinsured.
Other Commercial Auto Coverage You May Want To Consider Includes:
- Towing– If you are involved in an accident and your taxi cab is not drivable, the towing coverage on your policy will pay for the service expenses charged by the towing company.
- Accessories– Accessories coverage protects you from losses associated with your mileage meter, GPS navigation equipment and communication radios that you have installed in your cab.
