It’s against the law to operate a taxi service that’s not covered by insurance. Taxis are actually more risky than ordinary vehicles because they are always busy ferrying customers to their various destinations. Having an insurance policy gives you peace of mind because you will be compensated in the event of an injury resulting from an accident. In addition, it will protect you if you are in an accident and someone is injured.
On the other hand, selecting an insurance company is one thing while getting the right cover is something different. You should go for an insurance company that protects your best interests. Lest you forget, the insurance companies are out to make a kill by not honoring as many claims as possible. Here are tips to get you started when looking to insure your cab.
- Seek Advice from Insurance Broker
If you have never shopped for an insurance cover provider, it’s recommended you get someone to guide you through the process. An insurance broker is the most ideal expert because they know so much about insurance policies and will therefore point you towards the right insurance. In fact, insurance for taxi is a unique service. Most companies that cover taxis charge a lot of money in terms of premiums. At the end of the day, you want to be on the safe side of the law without having to pay too much money.
Once you have an insurance broker by your side, he can help you in comparing the packages that are offered by different companies. All in all, taxi insurance cost is determined by the kind of service that you will be offering. Public taxis command the least cost because they are always in good condition, probably because they are ridden by old drivers. On the other hand, private taxis attract a higher cost because they are operated by youthful drivers.
- Flexible Premium Payment Options
When shopping for taxi insurance, you should opt for a company that gives you several options of paying the premiums. In fact, you should narrow down your focus to companies that give you the privilege of either paying your premiums on a monthly basis or on annual basis. The advantage of paying for the whole year is that you stand a chance of being awarded a discount. The monthly premiums are recommended for taxis that don’t generate a lot of income. It’s also recommended that you opt for companies that reward you with a bonus when you have not been involved in any accident throughout the year (No Claim Bonus). This is because such a bonus enables you to pay less money for your premium.
- Stick with Companies that don’t Limit You
By the rule of thumb, you should never do business with a company that limits your potential. Such companies will not cover you when your mileage exceeds their specified distance. Such a condition can spell doom for your business because you can’t limit how far your customers can go. You should also stick to companies that allow you to remodel your vehicle for obvious reasons. However, you should not remodel your cab without informing your insurance company. This is because they are likely to jump the ship if they find out on their own when you are making a claim. If you own a fleet of taxis, you should settle for a company that will keep your vehicle covered regardless of who is behind the wheel (All-Driver Policy). This will enable you to alternate the cab drivers without complicating your insurance cover.