Cheap Taxi Auto Insurance in 2024 (Unlock Big Savings From These 10 Providers!)
Nationwide, Farmers and Progressive are our top picks for cheap taxi auto insurance. Nationwide has the cheapest minimum rates for Taxis, with an average rate of only $75/mo. Although rates may vary, these companies offer competitive rates and discounts to help taxi drivers save on their insurance costs.
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed Insurance Agent
UPDATED: May 30, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: May 30, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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3,019 reviews
Company Facts
Min. Coverage For Taxi
A.M. Best Rating
Complaint Level
Pros & Cons
3,019 reviews
2,903 reviews
Company Facts
Min. Coverage For Taxi
A.M. Best Rating
Complaint Level
Pros & Cons
2,903 reviews
13,128 reviews
Company Facts
Min. Coverage For Taxi
A.M. Best Rating
Complaint Level
Pros & Cons
13,128 reviews
Our top picks for cheap taxi auto insurance are Nationwide, Farmers, and Progressive. Nationwide has the cheapest taxi insurance rates starting at just $75 monthly.
Taxi cab insurance is not like rideshare insurance, which is specifically for people who use their personal vehicles to deliver food or drive for Uber or Lyft, or limo insurance, where the car’s length and value determine rates. Auto insurance rates for taxi cabs are based predominantly on location and annual mileage.
Company | Rank | Monthly Rates | A.M. Best | Best For | Jump to Pros/Cons |
---|---|---|---|---|---|
#1 | $75 | A+ | Usage-Based Rates | Nationwide | |
#2 | $80 | A | Contractor Equipment | Farmers | |
#3 | $82 | A+ | Tight Budgets | Progressive | |
#4 | $85 | A | Policy Customization | Liberty Mutual | |
#5 | $88 | A++ | Online Convenience | Geico | |
#6 | $90 | B | Cheap Rates | State Farm | |
#7 | $92 | A+ | UBI Program | Allstate | |
#8 | $95 | A+ | Youth Discounts | Erie | |
#9 | $98 | A++ | Unique Coverage | Travelers | |
#10 | $100 | A+ | Exclusive Benefits | The Hartford |
Read on to learn more about taxi cab insurance, then compare rates to find the most affordable auto insurance policy possible. Uncover affordable auto insurance rates from the top providers by entering your ZIP code above.
- Nationwide has the cheapest taxi auto insurance
- Taxi cabs must meet local insurance requirements to operate
- The average taxi policy costs $86 a month
#1 – Nationwide: Top Overall Pick
Pros
- High Customer Satisfaction: Nationwide Insurance is consistently recommended by its policyholders. Learn more in our Nationwide auto insurance review.
- Affordable Rates: Nationwide Insurance offers competitive rates for drivers with speeding tickets or poor credit, making insurance more accessible to a broader range of customers.
- User-Based Insurance Programs: Nationwide Insurance stands out for its innovative insurance programs, such as SmartRide and SmartMiles, which offer usage-based and pay-per-mile options, respectively.
Cons
- Higher Costs for Certain Drivers: Nationwide Insurance has higher-than-average costs for drivers with a DUI on their record, ranking fourth-highest in this category.
- Limited Discount Offerings: Nationwide Insurance did not score well in terms of the variety and extent of discounts offered.
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#2 – Farmers: Best for Contractor Equipment
Pros
- Specialized Coverage for Contractor Equipment: Farmers Insurance offers unique coverage options for contractor equipment, such as tools and machinery used in a business.
- High Satisfaction with Claims Handling: Most survey respondents express satisfaction with how Farmers Insurance resolves claims, indicating a reliable and efficient claims process.
- Plenty of Discounts: Farmers auto insurance discounts range from policy bundling and safe driving to occupational discounts for certain professions.
Cons
- Mixed Reviews on Roadside Assistance: Farmers Insurance has received customer complaints regarding slow response times for roadside assistance services.
- Higher Premiums in Certain States: Farmers Insurance premiums can be relatively high in some states compared to other insurers.
#3 – Progressive: Best for Tight Budgets
Pros
- Affordable Rates: Progressive Insurance offers competitive rates for cab drivers on a budget which you can learn more about in our review of Progressive.
- Gap Insurance for New Car Owners: Progressive Insurance offers gap insurance for new car owners, which can be helpful if you owe more on your car than it’s worth.
- Vanishing Deductible: Progressive offers a vanishing deductible program, where your deductible reduces over time for every claim-free period.
Cons
- Mixed Reviews on Claim Process: Progressive Insurance received a grade of C for its collision claim process from collision repair experts surveyed by the CRASH Network.
- Snapshot Program Impact on Rates: The Snapshot program may increase some drivers’ rates if their driving habits are considered risky based on the program’s data collection.
#4 – Liberty Mutual: Best for Policy Customization
Pros
- Flexible Policy Options: Liberty Mutual offers customizable policy options that allow customers to tailor their coverage based on their specific needs and budget.
- Coverage Options: Liberty Mutual offers a variety of auto policies and add-on coverage options. Learn more about coverage options in our Liberty Mutual auto insurance review.
- Discounts for Young Drivers: Liberty Mutual provides numerous discounts, including many tailored for young drivers.
Cons
- Higher Premiums: Liberty Mutual Insurance premiums can be relatively high compared to other insurers.
- Average Customer Satisfaction Ratings: While many customers are satisfied with Liberty Mutual’s service, there is room for improvement in certain areas.
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#5 – Geico: Best for Online Convenience
Pros
- User-Friendly Website: Geico Insurance provides a robust website that makes it easy for customers to manage their policies, file claims, and access resources on the go.
- Specialized Policies and Services: Geico offers non-owner policies for those who don’t own a car but still need insurance and the ability to file SR-22s for those who require proof of financial responsibility.
- Low Rates for Teen Drivers: Geico offers low rates for parents adding a 16-year-old to their policies. Learn more about Geico’s rates in our Geico auto insurance company review.
Cons
- Gap Insurance Not Offered: Geico Insurance does not offer gap insurance.
- Limited Network of Local Agents: Compared to some other insurers, Geico has a limited network of local agents.
#6 – State Farm: Best for Cheap Rates
Pros
- Students and Teens Discounts : State Farm Insurance offers good discount opportunities for students and teens.
- Strong Reputation: State Farm has a strong reputation in consumer studies, indicating high levels of customer satisfaction. Wondering about their level of customer service? Find out in our State Farm Company Review
- Top Financial Strength Rating: State Farm has an A++ financial strength rating from A.M. Best, indicating a superior ability to meet its financial obligations.
Cons
- Mixed Customer Reviews: While many customers are satisfied with their service, others have reported claims handling and customer support issues.
- High Rates: State Farm Insurance premiums can be higher than average for adult drivers.
#7 – Allstate: Best for UBI Program
Pros
- Comprehensive Coverage Options: Allstate Insurance offers the same coverage options for its Allstate Rewards program as regular policies.
- Allstate Rewards Program: Allstate Insurance offers an Allstate Rewards program, through which policyholders can earn points for safe driving and redeem them for various rewards. Read more: Allstate Auto Insurance Company Review
- Ease of Policy Setup: Allstate Insurance has received high marks for the ease of opening a new policy. Its efficient online tools and customer support make the process straightforward.
Cons
- Below-Average Customer Ratings: Compared to other companies, Allstate Insurance has received below-average ratings for auto insurance shopping satisfaction.
- Charges Despite Device Malfunction: Some customers reported being charged by Allstate for miles driven when the device for its UBI program malfunctioned.
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#8 – Erie Insurance: Best for Youth Discounts
Pros
- Generous Youth Discounts: Erie Insurance offers a variety of discounts for young drivers, such as good student and youth safe driving discounts. Our Erie insurance review explores the company’s affordable coverage and discounts.
- Strong Financial Stability: With an A+ rating from AM Best, Erie Insurance has proven financial stability.
- Easy-to-Navigate Website: Customers have praised the user-friendly website of Erie Insurance, making it easy to access policy information and make changes.
Cons
- Limited Availability: Erie Insurance is only available in 12 states and Washington D.C.
- Limited Digital Capabilities: While the website is user-friendly, customers have expressed frustration with the limited digital capabilities of Erie Insurance, such as online claim filing.
#9 – Travelers: Best for Unique Coverage
Pros
- Unique Coverage Options: In addition to standard car insurance coverage, Travelers also offers unique options such as ridesharing and gap insurance. Compare Traveler’s rates with top competitors in our Travelers auto insurance review.
- Convenient Online Claim Filing: Travelers Insurance offers the convenience of filing claims online or through their mobile app, streamlining the process for policyholders.
- Low Complaint Rates: Travelers Insurance has received fewer customer complaints than expected for auto insurance, indicating higher customer satisfaction.
Cons
- Doesn’t Offer SR-22 Insurance: Travelers does not offer SR-22 insurance, which is required for high-risk drivers.
- Limited Rideshare Availability: While Travelers offers rideshare insurance, it is not available in all states.
#10 – The Hartford: Best for Exclusive Benefits
Pros
- Discounted Rates for Members: Hartford offers discounted insurance for AARP members, providing cost-effective coverage options for older adults. Our article, The Hartford Auto Insurance Review, provides more detail about what this provider has to offer.
- New Car Replacement: Hartford offers new car replacement coverage, which replaces a totaled vehicle with a brand new one if it’s less than a year old and has fewer than 15,000 miles.
- Wide Range of Discounts: Hartford provides a wide range of discounts, making it easier for policyholders to save money on their premiums.
Cons
- Higher-Than-Expected Complaints: Hartford has received more complaints than expected for its auto insurance policies.
- High Rates for Young Drivers: Hartford may have higher rates for young drivers included on a member’s policy.
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Auto Insurance Requirements for Taxi Cabs
Like regular car insurance, taxi cab coverage must meet specific requirements. However, states regulate taxi cabs more heavily than insurance for personal vehicles.
Every taxi driver will see different requirements for their insurance based on several factors, including:
- Location: States and cities have different rules for how much insurance a taxi driver needs to carry before they can work.
- Vehicle: Not all car types can serve as a taxi — some makes and models, along with older cars, might not be acceptable. Learn the difference between car make and car model in our guide.
- Driver: Your age and driving history play an important role in your insurance. Taxi insurance companies reject drivers with too many incidents in their records.
If you’re unsure how much insurance you need, contact your DMV. They can tell you exactly what you need to drive. Alternatively, you can ask your insurance company for more information.
Age Restrictions on Auto Insurance for Taxi Cabs
Insurance companies have different eligibility criteria, but most taxi drivers must be between 25 and 65. Insurance companies set these limits to reduce the chance of accidents — statistically speaking, younger and older drivers are more likely to cause accidents.
Read More: 6 Reasons Auto Insurance Costs More for Young Drivers
Additionally, taxi companies often have age restrictions. For example, people over 65 might need to pass a medical exam or get a doctor’s approval before driving.
Optional Auto Insurance Coverage for Taxi Cabs
Although you only need to meet minimum insurance requirements, having more coverage is recommended. Taxis often drive thousands of miles yearly, exposing them to a higher risk of accidents. Collision and comprehensive insurance are some of the best options for additional insurance:
- Collision Auto Insurance: Pays for repairs your taxi might need after a collision, even if the accident was your fault
- Comprehensive Auto Insurance: protects your taxi from danger outside of accidents, including vandalism, theft, weather, and fire.
- General Liability Insurance: Protects you from lawsuits by covering legal fees and other expenses
- Worker’s Compensation Coverage: Helps pay for medical expenses if an employee is injured on the job
New companies pay higher rates than older ones due to a perceived lack of experience. However, your rates will lower once your company shows a history of safe practices.
Choosing the least amount of insurance possible can be tempting to keep your rates low. However, this is a dangerous game that can cost thousands of dollars.Travis Thompson Licensed Insurance Agent
Having ample coverage will keep your taxis safe if you can afford it.
How Much Auto Insurance for Taxi Cabs Costs
Like regular car insurance, rates vary by taxi cab insurance company. The average price of taxi insurance is $86 a month, but costs can be much more or less.
Multiple factors affecting auto insurance determine how much you’ll pay for your private-hire taxi insurance, including:
- Coverage levels
- Location
- Driving record
- Business hours
- Annual mileage
- Taxi make and model
Of course, you’ll also pay more for every car you add to your policy. If there are enough cars, insurance for taxi companies might come with a fleet or multi-vehicle auto insurance discount.
Check the rates below to get an idea of how much you might pay for taxi insurance.
Insurance Company Minimum Coverage Full Coverage
Allstate $92 $98
Erie $95 $103
Farmers $80 $95
Geico $88 $102
Liberty Mutual $85 $108
Nationwide $75 $105
Progressive $82 $100
State Farm $90 $110
The Hartford $100 $112
Travelers $98 $107
Another factor that affects your rates is how you choose to buy your policy. For example, many taxi companies buy insurance through a broker, but you can also talk to a representative or purchase directly from a website.
Rideshare Auto Insurance vs. Taxi Auto Insurance
Though they cover similar businesses, taxi coverage and rideshare insurance are different types of auto insurance.
Most insurance companies sell rideshare insurance as an add-on rather than a separate policy. However, you’ll need a separate policy if you run a taxi business.Michael Leotta Insurance Operations Specialist
Taxi companies traditionally have cars used only for business. Rideshare companies like Lyft and Uber rely on their drivers’ vehicles, so they don’t need to buy a fleet. Rideshare insurance gives your personal car commercial coverage while you work.
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How to Save Money on Auto Insurance for Taxi Cabs
Even if you need a lot of coverage, there are still ways to keep your rates low. Consider the following tips to lower your premiums:
- Choose the right car. Some makes and models are more affordable to insure. Taxi cab insurance companies give reliable, safe vehicles the best rates.
- Only buy the coverage you need. Although you should buy enough coverage for your taxi, you don’t want to go overboard. Only buy what you need to keep rates low.
- Raise your deductible. Your auto insurance deductible is the amount you pay before insurance kicks in. It comes with a financial risk, but raising your deductible lowers your rates.
- Hire safe drivers. Companies that have drivers with incidents on their records pay more for insurance. You can keep costs down by hiring drivers with clean records.
- Find discounts. Some of the most popular discounts for taxi drivers are multi-vehicle, defensive driver, executive driver, and business owner discounts.
The following table displays the various discounts offered by our top providers.
Balancing your policy’s value with how much it costs can be tricky, but the result is worth it. If you’re struggling to pick the right taxi cab insurance, a representative can help.
Get the Best Auto Insurance for Taxi Cabs
Unfortunately, taxi cab insurance is often expensive, even if you do everything possible to lower your rates. However, having the right commercial auto insurance for your taxi cab is vital in keeping your car — and your business — running.
Since taxi insurance can be expensive, you should compare your options. Use our comparison tool to get quotes from the best commercial auto insurance companies in your area to get the best rates on your taxi coverage.
Frequently Asked Questions
Where can you buy auto insurance for taxi cabs?
Many popular insurance companies sell taxi insurance, so compare auto insurance quotes online from multiple insurers to get the best rates possible.
Is taxi insurance expensive?
Insurance for taxi cabs can be considered expensive compared to regular auto insurance due to the higher risks involved in taxi operations. The cost of taxi insurance varies based on factors such as the location, driving history,
What is multi taxi insurance?
Multi-taxi insurance is a type of insurance that covers multiple taxis under one policy. It’s a convenient option for taxi fleet owners or operators who want to insure several vehicles together. This type of insurance can often result in cost savings and simplified management compared to insuring each taxi individually.
How much does private hire insurance cost?
On average, car insurance for private hire insurance costs around $86 monthly.
What insurance do you need for a cab driver?
The insurance you need as a taxi driver depends on several factors. These factors include local laws, what car you drive, your driving record, and business hours. Read more: How Auto Insurance Companies Check Driving Records
How can I get cheap private hire insurance?
To get cheap private hire insurance, compare quotes from several providers to find competitive rates that fit your needs.
Where can I find cheap car insurance for taxi drivers?
If you’re looking for cheap cab insurance, Nationwide offers the most affordable options at $75 per month. Progressive and Farmers are also among the cheap taxi insurance companies known for providing cost-effective coverage for taxi drivers.
How much is auto insurance for a taxi driver?
Auto insurance for taxi cabs costs around $86/mo. The cost for cab insurance can vary based on factors like location and driving history. If you need short-term coverage, you might consider 1 month taxi insurance. Compare auto insurance rates by ZIP code in our comprehensive guide.
How much is taxi insurance in Florida?
Taxi auto insurance rates in Florida are as low as $67/mo, but you should get online insurance quotes by ZIP code to find out how much Florida taxi insurance costs in your city.
Why is auto insurance for taxi cabs so expensive?
While there are several reasons for higher prices, the main reason is that taxis drive substantially more than normal drivers. Other reasons include more exposure to traffic, late night hours, and higher chances for the driver to become distracted.
Can you drive a taxi with personal auto insurance?
Standard auto insurance doesn’t cover taxis, so you can’t drive a taxi if you only have a regular policy. Since taxis are for business, you need a commercial policy to drive a taxi. You can learn more about what standard auto insurance policy covers in our article.
Is special auto insurance required for taxi cabs?
Yes, taxi cabs typically require special insurance coverage known as commercial auto insurance. This type of insurance is specifically designed to protect taxi cab owners, drivers, and passengers from the unique risks associated with operating a taxi service.
What does taxi insurance cover?
Commercial auto insurance for taxi cabs generally provides coverage for liability, collision, and comprehensive damage. It protects against bodily injury or property damage caused to others while operating the taxi cab. Additionally, it typically covers damage to the taxi cab itself in case of accidents, theft, vandalism, or other covered perils.
Are taxi drivers insured?
All taxi drivers must have up-to-date insurance policies on their commercial vehicles to legally drive.
How does driving record affect auto insurance for taxi cabs?
Points or incidents on your record, like speeding tickets, reckless driving charges, or a DUI, can significantly increase your rates. Taxi drivers with too many incidents on their records will likely lose their insurance, making it illegal for them to drive. In some states, not having auto insurance is a criminal offense, and taxi companies are also less likely to employ you if you have a bad driving record.
What is private hire taxi insurance?
Private hire taxi insurance is for hired drivers pre-booked through a private service rather than a taxi company.
What happens if a taxi driver crashes?
Depending on the fault laws in the state, the taxi driver will file a claim either with their commercial insurance company or the at-fault driver’s insurer. If the taxi company owns the taxi or fleet of taxis, the company will receive the claim payout. Find your cheapest auto insurance quotes by entering your ZIP code below into our free comparison tool.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Eric Stauffer
Licensed Insurance Agent
Eric Stauffer is an insurance agent and banker-turned-consumer advocate. His priority is educating individuals and families about the different types of insurance coverage. He is passionate about helping consumers find the best coverage for their budgets and personal needs. Eric is the CEO of C Street Media, a full-service marketing firm and the co-founder of ProperCents.com, a financial educat...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.