Insurance exists to help you mitigate the various risks in your life. For example, home insurance mitigates the risk of damage to your home. If your home is damaged in a storm, for instance, and you are insured, then your policy will cover at least some of the costs to repair it. Similarly, car insurance exists to protect you from the risk of car accidents. If you are involved in a collision, your auto coverage will help pay for vehicle repairs and medical treatment.
Our team at LaVaughn Rodgers Insurance has extensive experience in the insurance business, and we’re knowledgeable about the various types of coverage. In this article, we will go over some of the key differences between personal car insurance and taxi insurance.
- Mileage – Taxi drivers put more miles on their vehicles than typical drivers. Taxis are on the road throughout the day, rather than being used mainly to commute in the mornings and evenings. This means that taxis tend to wear out faster than personal vehicles, which is accounted for in taxi insurance policies.
- Driving Conditions – Taxis also tend to operate in different road conditions than personal vehicles. Taxi drivers spend most of their time driving in dense urban areas, which tend to have more crowded streets. This affects the risks involved in driving a taxi vs. a car, and that risk is also accounted for in taxi insurance policies.
- Liability – Taxi drivers also have different liability risks than non-professional drivers. Due to the higher number of passengers they transport, they are more exposed to liability lawsuits, so taxi insurance policies tend to have more robust liability coverage.