Anyone who wants to invest in paratransit or public transportation should consider the commercial, livery policy. You have a few options to assist you in finding the right coverage for your business, at the best price. Following these steps will help you reach your goals.
1. Taxi Business Needs
Before anyone can compare quotes, it’s important to understand what your business needs in terms of protection.
Public Transportation Liability
This mandatory coverage must be maintained on all autos. The minimum auto liability in Chicago to allow paratransit and taxi is $350,000 Combined Single Limit for Each Occurrence. Other villages might ask for lower or higher limits. Nearby suburbs will ask for a minimum of $250,000 per Occurrence, a combined single limit.
An owner of a taxi or limousine may not view liability limits as important as someone who owns a fleet. Different amounts of business investments must be protected. If you own ten taxicabs and 10 medallions, your total assets could reach $3 to $4 million. This is in contrast to $200,000 for a small business with just one medallion. The fleet owners need to be aware of the importance of limiting their liability.
As mentioned earlier, there is a minimum limit of insurance for Chicago’s public transportations, including paratransit and taxis, of $350,000. A lawsuit brought by Yellow Cab against an Illinois woman over a brain injury she sustained in a car accident in 1995 netted her $5.2 million. Fleet owners can face very unpleasant situations if they don’t have enough coverage.
This insurance provides vehicle protection in the event that the vehicles are damaged or stolen. It costs 4 to 5 percent of the vehicle’s annual value. Because of the high odometer readings, many taxi/limo drivers avoid purchasing this coverage.
Workman’s compensation for taxi drivers
Workers compensation for taxi/limo drivers is another essential need. Independent contractors and self-employed taxi/limo driver may have different options to get workers compensation. However, it is required for those who employ drivers or office staff.
General Liability and Property
Owners of taxi and limousine fleets may be in a position to purchase certain property or commercial general liability coverage to cover their office fixture, dispatching equipment, signs, money and computers. This insurance is more important for larger organizations than it is for smaller or single-man operations.
2. Comparing Quotes Versus Coverage
It is rare that there are many insurance companies offering taxi and limo insurance in Chicago. It’s not as hard as it sounds. But you must ensure that you deal with an independent insurance agent who understands the requirements for insurance liability certificates in Chicago taxi. It is important that you contact a few independent brokers when searching for limousine or taxi insurance quotes. Once you have received the proposals, it is important to compare their rates and the coverage they offer your business. You may find that paying a bit more for your insurance can significantly improve the quality of your coverage.
3. Discounts and surcharges
Discounts for past losses are the key discounts that taxi and limousine insurance companies might offer. Medium-sized taxi companies can get substantial discounts, especially if they have never had to lose any money. Annual premiums for auto liability may exceed 1 million dollars. Rebating, which is the act of asking an agent to return a percentage of commission to customers, is considered illegal. Rebating can result in severe penalties for both the customer and the agent. Additionally, Taxi and limousine businesses might have to pay extra money if their drivers are younger or have poor MVRs.