Planning to start a taxi company is an expensive but profitable business venture. However, since we are in dire economic need to cut our spending, then you are probably looking for ways to save on car insurance costs while getting the right coverage that your business demands.
Whether you are purchasing the cars brand new or slightly used, you still need to spend money. On top of that, should you need people to operate the units, salary would be your next concern.
Car insurance is expensive, and if you have say 4 to 5 taxi units, then it is going to cost you more than what you are anticipating. Not forgetting that commercial vehicles are not treated the way privates do. Fortunately, there are ways to reduce these prices and pay much lower insurance rates for those vehicles. In this article, I am going to share with you how to do just that.
According to my research, the best way to reduce the cost of your insurance rates is to turn yourself into a private company. However, keep in mind that being a private taxi company has its own sets of restrictions. Your insurer imposes these restrictions in an attempt to curb down the risk associated in running your business. For instance, your taxi units may not be allowed to park anywhere except areas designated as “safe areas.” Again, the insurance company selects these so-called “safe areas”.
In addition, picking random customers along the streets is usually not allowed. Rather, your clients can call a single number, acknowledged by a dispatcher and contacts the nearest available units from the calling party. This is no longer a new setup and I have used this kind of service myself many times already.
Since your units do not roam around the city with no passengers, you can practically save on fuel, spare parts that wear and tear and other operating expenses. I do not however, have any idea about taxi owners assaulting other owners or pedestrians to taxi drivers, but in real life, this is said to be taking place all the time. Lucky for you, as a private taxi company, you do not have to deal with such assaults and other similar incidents while enjoying lower car insurance rates granted by your insurer.
Even so, remember that not everything cheap is good. If you really want to make the most out of it, then do your homework; scrutinize the coverage, the restrictions and weighing if the benefits are enough to convert yourself into a private taxi company.
As of this moment, there are literally dozens of insurers out there eager to provide you with the coverage you need. Do not settle with the first insurance company you come across, that is wrong.
Instead, do comparison-shopping by looking on several or multiple insurance quotes from different companies and comparing them side-by-side. If you are just starting the business, it pays to talk to someone who might already have the experience about insuring taxi units. Such decisions should not be taken lightly or hastily as it can make or break your business.
