Taxi Fleet Insurance

Things You Need To Know About Taxi Fleet Insurance

Do you own a taxi firm? Well, then you must have multiple vehicles acting as taxis under your brand and these commercial assets must be insured with adequate coverage. It’s common practice for some to opt for individual car insurance policies for each of your cars but the smarter entrepreneurs prefer a taxi fleet insurance over an individual policy.

What is taxi fleet insurance?

A taxi fleet insurance is a policy where every car in your fleet is covered under one single policy. If you have 2 or more vehicles under your fleet, you will easily qualify for taxi fleet insurance.

How many cars and what type of cars?

The good part is that a taxi fleet insurance policy would cover any number of cars you have under your fleet, starting from 2-3 to even more than 100. Nowadays, there is the option of a mini fleet policy for a smaller fleet that ranges from 2-5 vehicles. In regards to the car type, a taxi fleet insurance policy will cover any kind of vehicle you run under your taxi fleet.

Types of coverage

Taxi fleet insurance usually comes up with 3 primary types of coverage options.

  1. Third party only cover

This is the most basic form of insurance coverage for your taxi fleet and the cheapest one as well. It provides covers for damage incurred to 3rd party & damage to your taxi won’t be covered here. If your vehicle gets stolen, you would have to bear the cost yourself.

  1. Third party fire & theft policy

This policy offers little more than the previous basic coverage. It would bear the expense of repairing your vehicle in case it’s involved in a fire accident. It would also support you if the car is stolen. However, it won’t help you if the vehicle is damaged due to vandalism or road accident.

  1. Comprehensive cover

Comprehensive cover denotes the highest cover level for you taxi fleet. It includes the previous two covers under it and would also support you if the vehicle lands up with any accidental damage. In simple words, your comprehensive taxi fleet insurance policy will make sure that you won’t have to face any huge repair bill in case your vehicle is involved in a fire or road accident. Quite naturally, this is the most expensive cover but looking at the coverage extent, the higher price is often justified.

Benefits of taking taxi fleet insurance

You can always have individual policies for each of your vehicles but then why invest in a taxi fleet insurance? Well, fleet insurance comes up with several benefits-

Convenient insurance management

This is the primary benefit of taking taxi fleet insurance policy over an individual car insurance policy for each of your cabs. When you opt for fleet insurance, you will have all your taxis under one single policy- there will be one premium to pay, one policy to renew and make claims on. When you take individual car insurance policies for each taxi, you have multiple policies to manage and there is a greater amount of paperwork which can be confusing and time consuming for anybody to deal with. But, fleet insurance assures a much more convenient paperwork management method for your administration team with its streamlined operation. In simple words, life gets much easier with fleet insurance for your taxi fleet.

Lesser cost

This is another good benefit of opting for taxi fleet insurance. When a taxi fleet owner insures the entire fleet under a collective fleet insurance policy- the insurance company is likely to offer a competitive deal. Basically, a taxi fleet insurance scheme often costs less per vehicle compared to insuring all the vehicles & drivers individually.


The taxi fleet insurance policy will enable you to include any sort of vehicle you have under your fleet in one single policy. It’s a very flexible solution and will allow you to insure any of the drivers driving the vehicles. However, most taxi fleet policies will only insure drivers over the age of 25 years of age.

How to ensure cheaper taxi fleet insurance

The good news is that there are various methods to ensure cheaper taxi fleet insurance without compromising on the insurance coverage.

Vehicle trackers

Vehicle trackers are a great way to save on your fleet insurance. These tracker solutions would notify on the exact location of your vehicle in real time which would be handy in vehicle recovery or in case the car gets stolen. If it’s easy to recover your stolen vehicles, there would be less chances of expensive claims and hence the insurer may be happy to offer you a cheaper quote.

Alarms & immobilizers

Fleets equipped with alarms & immobilizers would also be able to encourage cheaper quotes from your insurance providers. Both the security features will discourage & prevent the thieves from stealing away your car.

Risk assessment

Insurance providers often feel safer with fleet owners who carry risk assessments on their taxi fleets. It proves that you are serious about the safety of your vehicles which will reduce the chances of claims- and invariably encourage lower premium rates from your insurance provider. Thus, you should run a risk assessment of your fleet and many insurers have their very own risk management & assessment team to assist the fleet owners.

You can ask your provider about areas that need improvement in your fleet or what the drivers must do in case they get tangled in accidents and so on. These little safety steps could mean a lot when it comes to your insurance premium.

Deploy safe & clean drivers

Your premium depends largely on the age and quality of your drivers. Stereotypically, younger drivers may be seen to have a tendency to rash drive and hence be deemed as unsafe to the insurance providers- which eventually may lead to increased premiums. What’s more, points on licenses and prior driving bans or even criminal records may also increase premiums.