If you own a taxi or limo service, then it is your responsibility to provide protection for your passengers and other people on the road. Insurance plans for vehicles that operate to transport people are also called “livery insurance” or “for-hire livery insurance.”

These kinds of policies offer the unique coverage needed for these types of vehicles. Most insurance companies separate their policies for taxis and limos to accommodate their different needs. Taxi insurance can be purchased by the taxi company or drivers can choose to self-insure.


Taxi insurance is designed to meet the needs of traditional taxis, the cars that pick passengers up in random locations, are traditionally yellow, and have a light on the roof to signify whether or not they’re open for business. However, taxi insurance can also extend to shuttle and tour services.

As with any type of auto insurance policy, rates for taxi insurance will depend on:

  • The insurance company and state requirements.

  • The vehicle’s year, make, and model.

  • The driver’s age and driving history. Drivers under 25 years of age are not qualified to get taxi insurance.

  • The coverage purchased.

Furthermore, your taxi must follow state or local for you to legally operate it. Although your insurance company is not responsible for your compliance with these laws, it is a good idea to make sure your taxi meets these requirements before purchasing insurance. Taxi insurance policies are similar to commercial auto insurance plans in their coverage.


A Typical Policy Includes:

Property Damage & Bodily Injury Liability:

For most insurance plans, liability coverage protects other drivers or passengers in other vehicles in an accident you’re at fault for. It does not cover passengers in your own vehicle. However, with taxi liability insurance, liability extends to your passengers.

Personal Injury Protection:

Covers medical expenses and loss of wages if you’re injured in an accident.

Comprehensive Coverage:

Protects your taxi against any damage not caused by a collision, such as weather, fire, vandalism, and theft.

Collision Coverage:

Covers the cost of damage to your taxi in case of a collision. This includes collision with objects.


The coverage offered for limos is similar to taxi insurance, but since limos are considered luxury vehicles, they need some variations in coverage. This includes higher coverage limits, especially since limos are usually reserved in advance and transport more passengers.

As such, limo insurance costs more than taxi insurance. However, rates will also vary by state requirements, the driver’s age and driving history, the vehicle, and the amount of coverage purchased.

In most cases, drivers have their own limo insurance, and their dispatch service should always carry general liability insurance and workers’ compensation.

Ready for a quote? Call Allstar

Contact Us

If you would like to find out more about what Allstar International Group can do for you or to receive a quote, don’t hesitate to contact us. We’d love to hear from you!