5 Challenges for Taxi Insurance for High-Risk Drivers

Taxi Cab

As grave and grim the title of article look, the matter at hand is of high importance. We are talking about a commercial vehicle responsible for transporting people safely and securely- a cab or taxi. Taxi insurance is considered a highly critical matter for obvious reasons. As a cab driver, you are not only responsible for the safety of yourself but the wellbeing of others as well i-e your passengers. So, it is all the more important to get your taxi covered under a great insurance plan. A plan; which includes not only your vehicle against damages and theft but covers you and your passengers against injury, if a situation is encountered.

Cab insurance is your investment for rainy days. It must include business interruption policy too because if your cab is your only means of income and you make a living wholly on the basis of the taxi, then you cannot risk your income if it breaks down or gets into a situation. Cab insurance is there to have your back financially and to support you, in terms of money, in case of an accident.

High-risk drivers are those who have a record of getting into situations like accidents or getting tickets frequently. They are on the receiving end of tickets for violating traffic rules. When it comes to high-risk drivers, insurance companies usually are reluctant in offering full coverage plan. If not reluctant, then definitely most of the insurance companies offer a plan which has a higher premium payment. So, when a high-risk driver owns a cab, getting an insurance plan for his cab becomes challenging. It is because of the fact that insurance providers are hesitant in providing coverage for a commercial vehicle driven by someone who has a record of getting into situations.

For purchasing a taxi insurance policy, you need to meet certain requirements. E.g. your age must be between 25 and 65. T should not be any convictions against yourself regarding possession of a weapon, vehicular manslaughter or use of drugs or alcohol while driving. These charges disqualify for getting cab insurance. But, if you don’t have any of these on your record, then you are eligible for purchasing taxi insurance. With that, you can avail great discounts on premium as well. However, if you are a high-risk driver, then you might face quite a lot obstacles on your way to purchase taxi insurance. These hindrances are because of the following reasons:

1. Damages against vehicle

For high-risk drivers, it is highly likely to get into unpleasant situations like accidents and other mishaps. At times, the vehicle can be damaged a lot, and that obviously increases the cost of repairs. This acts as a burden on the pocket of insurance companies. Sometimes the damages done to the car exceed the cost of the insurance premium which definitely makes it baggage for coverage companies. For this reason, insurance companies avoid offering insurance to high-risk drivers.

2. Injuries

Injuries are an outcome of irresponsible driving and accidents. Passengers or the cab drivers may be the victims of these injuries. As part of their coverage plan, the insurance company has to pay for the treatment of these injuries. Treatment of the injuries portends an extra expense on insurance company’s budget. And this is something which they avoid to their maximum level. Treatment of the injuries also affect the chances of high-risk drivers in purchasing insurance.

3. Passengers’ Claims

For cab insurance, another factor which becomes an obstacle in acquiring taxi insurance for high-risk drivers is the claim of passengers. We cannot rule out how passengers react when any mishap happens. In case of an undesirable situation, the circumstances are worsened financially because of the claims of passengers which they make on the basis of their injuries or luggage damages. Since an insurance policy is responsible for paying these damages, they find it no less than a nuisance to provide coverage for high-risk drivers who drive cabs.

4. Theft

No wonder irresponsible behaviour is one of the most dominant traits of high-risk drivers. So, it comes as no surprise that they leave their vehicle parked somewhere irresponsibly. Many times, the car can get stolen. Or there might be articles which can get stolen from car. A coverage plan which is responsible for insurance of such incidents might not like to provide protection to irresponsible drivers.

5. Criminal Record

Insurance companies tend to avoid coverage for those cabs which are driven by drivers who have a record or claims against sexual harassment, discrimination or wrongful conduct with passengers. Since a cab driver is responsible for the well-being of other people as well; therefore companies do not provide coverage to such drivers who can be involved in such offences potentially.