First, by purchasing cab insurance, you will be legitimately ready to offer passengers transportation legally.
Additionally, operating a taxi can be a great way to make money in Arizona. For instance, people are always in need of rides to bars, to the airport or wherever else they need to go. However, it is important that you have sufficient cab insurance if you want to operate a legal taxi company.
Cab Insurance Arizona Requirements
Next, if you are going to operate a taxi in the state of Arizona, you must carry $250,000 of primary commercial coverage in addition to $250,000 of uninsured motorist coverage. However, this is only during times in which you are transporting a paying customer. Also, proof of insurance must always be carried and presented upon request to anyone who asks for it.
Taxi insurance Arizona requirements when not transporting customers
In addition, if you are driving a taxi in the state of Arizona without any passengers inside, your taxi insurance requirements less. For example, this means that you only have to carry $25,000 of liability for a single person and $50,000 to cover two or more people. Furthermore, you must carry $20,000 to pay for any property damage that occurs in an accident with taxi insurance.
What happens after an accident?
In addition, if you get into an accident while driving a cab, an investigation will be performed. Also, you are responsible for presenting proof of taxi insurance and meeting all other requirements to be a taxi driver. Next, your cab insurance Arizona provider is required to provide information that would help an investigation proceed. Furthermore, after an investigation, one party will be responsible and legal proceedings may take place if applicable.
What happens if your commercial insurance policy lapses?
Additionally, if your cab insurance lapses, you must either get a new policy or stop operating as a taxi. Further, your taxi insurance company may allow you to renew your coverage automatically or alert you that your policy will lapse. Clearly, this gives you ample time to ensure that your policy remains valid.
Whenever you operate a motor vehicle whether for private or commercial purposes, don’t forget to have adequate taxi insurance. Clearly, it will help you avoid financial and legal penalties that can harm your personal finances as well as your ability to make a living driving your car.