Taxi insurance exists in Nigeria. It was created to curtail the risks in the taxi business which include accidents, vandalism, theft, damage to third-party property, and personal injury to passengers. Taxi insurance addresses these risks and ensures taxis are adequately covered.
Understanding the purpose, legal requirements, types of policies available, and tips for lowering insurance premiums can help taxi owners make informed decisions.
Understanding Taxi Insurance
Taxi insurance provides financial protection against the unique risks associated with the taxi business industry. The business industry faces unique risks due to factors such as frequent use of vehicles, passenger transportation, and exposure to various road conditions.
The purpose of taxi insurance is to protect taxi owners, drivers, passengers, and third parties from financial loss in case of accidents or other road incidents.
In Nigeria, legally all taxi drivers don’t need to have third-party taxi insurance. But I recommend you purchase it as a taxi driver. Even if it’s the minimum, as per the Motor Vehicles (Third Party) Insurance Act. This ensures that any damages or injuries caused to third parties are covered by the insurance.
Types of Taxi Insurance Policies
The types of taxi insurance policies are:
- Third-party liability insurance: This policy covers the damages and injuries caused to third parties. However, it usually does not cover damages to the taxi or injuries to the taxi driver.
- Comprehensive coverage: This policy offers coverage for both third-party damages and injuries, as well as damages to the insured taxi and injuries to the driver. It provides more extensive coverage but comes at a higher premium.
- Uninsured and underinsured motorist coverage: Uninsured motorist insurance covers you in an accident with an at-fault motor driver who doesn’t have liability insurance. Underinsured motorist insurance covers you in an accident with an at-fault motor driver whose liability limits are too low to cover the medical expenses of any injured persons.
- Personal injury protection (PIP) for drivers and passengers: This is also called no-fault insurance, it covers medical expenses and lost wages for drivers and passengers injured in a motor accident regardless of who’s at fault in the accident.
Tips for Lowering Taxi Insurance Premiums
- Safety Measures: Install safety features such as CCTV cameras, GPS trackers, and alarm systems to reduce the risk of theft and accidents.
- Driver Selection: Choose experienced and responsible drivers with clean driving records, as this can reduce insurance premiums.
- No Claims Bonus: Maintain a no-claims bonus by not making any claims for a certain period. This can lower insurance premiums over time.
- Compare Quotes: Shop around and compare quotes from various insurers to find the best coverage at an affordable price.
Conclusion
Taxi insurance is crucial for protecting taxi owners, drivers, passengers, and third parties from financial loss in the event of accidents or other incidents. It is essential to understand the legal requirements and types of insurance policies available to ensure adequate coverage.
By implementing safety measures and considering cost-saving tips, taxi owners can lower insurance premiums and protect their businesses effectively.