What type of insurance should a taxi have?
Imagine you are a taxi driver and, after a long day's work, you have an accident with a passenger on board. It's not serious, but it's a huge shock. Who pays for it? Does your insurance cover everything or do you have to pay out of your own pocket? This is the question that plagues many drivers starting out in the taxi business or renewing their policy. If you've been wondering about this yourself, stay tuned, because here you'll find clear, straightforward, down-to-earth answers.
Compulsory taxi insurance: the minimum you must have
By law, all taxis in SpainBoth metered and non-metered taxis are obliged to have a compulsory civil liability insurance. This insurance covers personal and material damages that you may cause to third parties while providing the service. It is the legal minimum and without it, you simply cannot work.
However, this insurance is not like that of a car normal. As you transport people, the minimum required amount is usually higher. In other words, the coverage is adjusted to the real risk of your activity.
And if you can't get it on the traditional market (e.g. because of claims history), you can go to the Insurance Compensation Consortium.
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Is it compulsory to have specific insurance for taxis or is conventional insurance sufficient?
No, conventional insurance is no good. Taxis are different in nature from private vehicles: they work much longer hours, they transport strangers, they are exposed to urban traffic... That is why you need a specific insurance for taxis that takes into account all these variables.
And be careful, although it is not legally obligatory to add extra coverage, it is more than advisable to do so. Not doing so is like driving with the handbrake on: you're going, but you're taking a gamble.
What additional coverages does a taxi driver recommend to be fully protected?
Voluntary Civil Liability
Extends the limits of compulsory insurance. If the damage you cause exceeds what is covered by the basic policy, this cover comes into play.
2. Driver accidents
What if you're the one who gets injured? This cover protects you directly as a professional driver. Given that you spend many hours behind the wheel, it's almost essential.
3. Roadside assistance
Includes towing, towing and assistance in case of breakdown or accident, available 24 hours a day, 365 days a year. Essential to avoid being stranded while you work.
4. Sick leave benefit
In case of illness, accident or hospitalisation, this insurance ensures you an income. Because if you can't drive, at least you can breathe easy knowing that you won't be left with nothing.
5. Loss of licence and recovery of points
A penalty can leave you without a licence. This cover includes courses to recover points and even compensation if you temporarily lose your licence.
6. Legal defence
Passenger claims, contractual problems, workshop disputes... This cover gives you legal back-up when you need it.
7. Theft and fire cover
Protects the taxi against theft, attempted theft or fire damage. Covers both the vehicle and the equipment it carries.
8. Own damage
Allows you to repair damage to your own taxi in the event of an accident, regardless of who is at fault. Ideal if you want to protect your work tool without depending on third parties.
9. Damage to property of third parties
Covers damage that you may unintentionally cause to other people's property, such as street furniture, facades, parked vehicles or private facilities.
10. Medical expenses and injuries
Provides medical assistance for the driver and passengers in the event of an accident. Prevents a medical emergency from becoming an unexpected expense.
How much does taxi insurance cost in Spain and what does its price depend on?
Here comes the big question: how much does it cost? Well, it depends. There is no single rate. The price of taxi insurance in Spain can vary between 1,000 and 8,000 euros per yearThis is no exaggeration.
What does it depend on? Here are the main factors:
- Type of taxi: metered and unmetered taxis. Urban taxis (Class A) usually pay more than rural taxis (Class B).
- Working area: In cities such as Malaga, premiums of up to €4,500 per year have been reported. Why? High accident rate and long driving hours.
- Driver history: if you have a clean part, you pay less.
- Age of the vehicle: the newer it is, the easier it is to insure.
- Annual usage and mileage: a taxi that does 200,000 km a year is not insured in the same way as a taxi that does 60,000 km a year.
Don't take a gamble: consult an independent brokerage firm
The best advice? Before jumping directly into contracting with a company, talk to one of them. independent insurance brokerage. They compare different insurers, know the best conditions on the market and can help you save a lot of money... and aggravation.
A brokerage has no interest in selling you "their company's insurance", because they don't work for just one company. They work for you. And that, when you are risking your livelihood, is worth gold.
Are you a taxi driver and want to tell us about your experience?
Did you have your insurance raised without explanation? Did you have a claim and your cover didn't respond as expected? Write to us or leave your story in the comments. At lawebdeseguros.com we are building a community where taxi professionals help each other. Because no one knows the risks of this profession better than those who live it every day.
Do you have any doubts about what kind of insurance a taxi should have? If so, contact us and we will advise you without obligation.