If you operate a taxi cab, you’ll need more than traditional auto insurance. There are specific taxi cab insurance requirements for fare-based vehicles. 

Why is added coverage needed? Taxis are on the roads for longer periods than an average motorized vehicle. This increases the risk of accidents while in traffic or when driving in bad weather. 

4 Key Insurance Coverage Policies for Taxi Cabs

As a taxi driver, these coverage options may be vital:

1. Collision damage coverage: If your vehicle crashes into a non-vehicular object, such as a light pole or a street sign, collision protection pays for any damage to your vehicle.
2. Personal injury coverage: If you, your passenger or pedestrians suffer bodily injury, your insurance covers medical bills associated with the accident. 
3. Uninsured motorist coverage: If you have an accident with a driver who doesn’t have insurance, you won’t be stuck having to pay out of pocket for the resulting expenses or bills; your insurance plan will take care of it.
4. Comprehensive damage coverage: This protects your cab against fire, vandalism and theft, including the vehicle being stolen. 

While the specific coverage needed for your taxi cab will be determined by your local Department of Motorized Vehicles, you don’t want to take any unnecessary risks. Make sure you have the insurance required for your taxi so you can drive with peace of mind.