How Fleet Insurance Affects The Taxi And Limousine Industry
A passenger steps into a waiting cab when a sudden thought strikes them. What happens if their driver gets into an accident? While the customer definitely won’t have to pay for damages, who’s going to provide for their medical fees? If you’re the cab company proprietor, this thought has certainly crossed your mind before, and when you run a business with more than four vehicles, fleet insurance is the perfect solution. Taxi and limousine services need to cover all of their registered vehicles to operate legitimately, but they can’t take out individual policies on each and every one. Fleet insurance policies are the most common solution for covering multiple vehicles, and they have a profound effect on the for-hire transportation industries.
Ensuring your vehicles are covered can be expensive. If you take out separate policies on each one, you’ll miss out on the discounted rates and premiums available with fleet insurance. Fleet insurance is specifically designed to cater to businesses who regularly utilize large numbers of vehicles, and it includes special provisions and breaks for these clients in addition to comprehensive and basic liability insurance. The ability to tailor a fleet insurance policy with the same latitude and variety of options one can apply to a private vehicle makes it easier for taxi and limousine companies to provide their services.
Because many fleets are comprised of multiple instances of the same make and model vehicle, they carry special replacement clauses for non fault claims. They generally have no-radius-restriction mileage policies, and can include liability coverage and roadside assistance.
Fleet insurance policies often result in better taxi and limousine rides for customers who benefit from the lower rates firms covered under fleet policies can offer. Because many of these companies house their vehicles in shop areas and secured, fenced lots, their premium costs are considerably lower. The fact that many newer taxis and limousines are equipped with electronic theft immobilizers also helps decrease premiums.
As long as your drivers are licensed for the types of vehicles you have, fleet insurance providers will cover incident claims. Many firms choose to make their drivers attend driver education classes to keep their costs down.
Fleet insurance claims are usually processed quicker than private claims and with fewer questions asked. It is generally understood that an accident is more likely to happen when a vehicle is not under your control or supervision, so policy providers tend to be a bit more lenient. With insurance costs on the rise, online fleet insurance routinely saves taxi and limousine services money that they can use to expand their operations.