When it comes to vehicle insurance, taxi drivers have a lot more to worry about than the average motorist. Besides just protecting themselves from the usual cost of getting in an accident, they also must mitigate risks to their clientele. Here is how they can protect themselves with two types of taxi third party insurance.
Bodily Injury Liability
In insurance terms, anyone that you injure while driving is considered a third party. For taxi drivers, third party bodily injury liability pays medical costs of other drivers, pedestrians, or passengers. These expenses add up when you consider that they may include the following:
- Lost wages
- Pain and suffering
- Ambulance service
- Hospital bills
Property Damage Liability
Property damage liability does not cover the taxi itself, but it does pay for repair to other people’s vehicles if the driver is at fault in an accident. It also covers damages to stationary objects such as mailboxes or trees and pays to repair or replace the possessions of riders.
Owners of taxis are some of the most experienced and best drivers on the road. However, it is still important that they protect themselves from large expenses that unexpected events may cause. Besides regular vehicle insurance, they also need these two types of third party liability insurance.