10 Things to Know About Insuring Taxis & Limos

1. Taxi operators are required to have commercial insurance that protects passengers and third parties (i.e., pedestrians and other drivers) in the event of an accident. – National Association of Insurance Commissioners
2. New York taxis are outnumbered by Uber cars with 13,587 registered yellow cabs in the city versus 14,088 Uber cars. However, N.Y. taxis still see more business with 440,000 yellow cab rides a day compared to 20,000 to 30,000 Uber rides per day.
3. In a 2014 New York crackdown on unsafe taxi drivers, the city’s Taxi and Limousine Commission issued nearly 5,000 safety-related summons through October, a 95 percent increase over the same period in 2013.
4. In 2014, California Gov. Jerry Brown signed legislation requiring certain types of limousines to have two fire extinguishers and undergo regular safety checks. The bill was in response to a limousine fire that killed five women on the San Mateo-Hayward Bridge in 2013.
5. The San Francisco Municipal Transportation Agency reported in 2014 that taxi trips logged by the average taxi dropped 65 percent in 15 months, from 1,424 per month to just 504 – R Street Policy Study, “Ridescore 2014; Hired Driver Rules in U.S. Cities”
6. In R Street’s 50 city “Ridescore 2014” study, Las Vegas had the worst grade (F) of any city in the study because of its harsh approach to transportation network companies, most burdensome taxi regulations, and among the worst structures for limos as well.
7. Taxi medallions in New York City, which drivers are required to have to operate a cab in the city, have been purchased for as much as $1 million (R Street).
8. The 2014 Edition of the Taxicab, Limousine & Paratransit Association’s (TLPA) Limousine & Sedan Fact Book reported only 18 percent of companies indicated their chauffeurs were independent contractors, and more than 84 percent of the respondents’ chauffeurs were classified as company employees.
9. The average insurance premium per car for limousines was $4,217 in 2014, according to the TLPA. The average company premium per taxi cab in 2013 was $5,498.
10. TLPA’s 2014 report stated 37.7 percent of limousine company respondents saw increased insurance premiums.