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Travel Guard provides rental vehicle accident damage as an optional feature within selected plans. Rental car insurance is critical to ensuring that your trip is safeguarded. Choose a Travel Guard insurance plan that allows for the rental vehicle damage cover add-on.
What would the primary features in a Travel Guard private hire car insurance plan?
There are travel-related insurance policies that Travel Guard can personalize to your needs. Go through the various options to find one that meets your coverage and benefit limit. The attributes of rental vehicle damage coverage include:
- Primary physical damage coverage for rental vehicles up to $35,000/$50,000 is available for covered losses ($250 deductible).
- Roadside assistance.
- Easy to file claims.
Would I even require cover on a private hire car?
As with all vacations, spending money to fully cover the trip to make sure it’s not at risk is a decision worth making. But when driving, it is even more so. When adding a road trip to your travels, it’s a lot to factor in. Minimize the hassle with Travel Guard’s damage coverage. Not just for physical damage, but with our roadside assistance, we are there to aid you when it gets tough.
What private hire vehicle insurance is appropriate for a rental vehicle?
All Travel Guard plans, whether Deluxe, Preferred, or Essential, allow you to expand with rental vehicle damage coverage on any of those three Travel Guard plans. Check our Plans to determine what accommodation suits you perfectly.
Do rental cars fall under my auto policy coverage?
This will depend largely on what personal auto insurance coverage you have and your reason for renting a car. Some coverages may apply to a rented vehicle. Make sure you also verify what the deductible is on your personal auto policy. If your deductible is large, consider using Travel Guard rental car insurance instead.
Personal Effects Coverage (PEC)
PEC is available for a fee when renting and covers items lost or damaged while traveling. If accepted, the PEC contained in the policy is lost or damaged to the personal effects of the renter, additional drivers or passengers against the risk of loss or damage. Claims are payable in addition to any coverage the renter or passengers may already hold and are subject to the terms and conditions of the policy. This is a summary only.
Renters may acquire PEC but its purchase is not mandatory when renting a vehicle. As PEC compensates for some liabilities, it may overlap with coverage already held by the renter.
Since Enterprise cannot make a judgment on the adequacy of the in-force insurance cover, the renter is encouraged to check his or her personal insurance policies or other coverage that may otherwise supersede the limited liability offered through PEC.
What is the price for PEC?
The price for PEC differs depending on the area from which the vehicle is rented. On average, PEC would cost between $5.99 and $15.67 per day.
Where can one get rental car insurance when renting a car in some other country?
If you are an American staying abroad, you may wonder whether or not Personal auto insurance policies issued in America will cover a rented vehicle in your host country. Some nations have a mandate of a minimum level of coverage or types of insurance that is needed for a vehicle rental insurance policy, and thus, it is imperative to investigate the regulations surrounding the country you intend to drive in.
Do I receive roadside assistance with my Travel Guard Rental Vehicle Damage Coverage?
Absolutely. You can rest easy knowing that 24/7 roadside assistance is available in case you need help while on the road. Our representatives can focus on your trip and contact tow companies, arrange alternative transportation, and coordinate rental vehicle returns.
How much will a Travel Guard rental car insurance plan cost?
As with the majority of Travel Guard travel insurance plans, coverage for damage on rental vehicles is calculated by the day. When purchasing the travel insurance plan, you enter the dates you’ll need the rental car and see a quote for the rental car portion.
There are several benefits to purchasing your car rental insurance plan with Travel Guard. Firstly, AIG Travel is one of the largest providers of travel insurance and has a global network of service centers in Asia, Europe, and the Americas which guarantees your travel assistance and medical aid requirements will be taken care of as you are traveling. Further, the plan allows you to add additional supplements that may be required for the trip to ensure there are no gaps in coverage.
Types of Insurance for Private Hire Vehicles
There are two categories when searching for taxi cab policies, which are referred to as taxi cab insurance. The types you fall under will determine how much you will pay on insurance premiums and what level of coverage you will be required to maintain. The two types are:
Private-Hire Car Insurance
Private-hire taxis are taxis that individuals must book before traveling. This type does not flag any passengers. Neither do they show signs to indicate that they are ready to pick up passengers. Pre-booking is required with a designated time for the pick-up.
Public-Hire Car Insurance
On the other hand, public-hire taxis are any taxi you see cruising around a city. A passenger can request their services by simply waving to the taxi. It also has a well-known taxi sign. Unlike private-hire taxis, public-hire taxis usually have fewer insurance restrictions.
Is Insurance a Requirement for Taxi Drivers?
As noted previously, drivers of taxis are also drivers on the road and, therefore, require taxi insurance. Several risks are associated with a taxi driver or taxi business. On top of these, driving without insurance is illegal throughout the entire country, so it is a good idea to assume coverage is necessary.
If an individual manages a taxi company or operates as a taxi driver, they will need basic commercial vehicle insurance. The coverage will provide them with the protection they need in case they are involved in an accident. In addition, policies will also cover liability, damage to property, medical expenses, and more.
Without coverage, driving becomes a risky endeavor and can even lead to prosecution. Very few people want to have to unnecessarily pay for damages due to negligence while on the road.
Covered Types of Business Activity
There are a number of services available that can transport people from one place to another, which raises the question as to whether these people also need to ensure their taxi. Some examples may include:
- Taxi services
- Taxi leasing or renting services
- Limousine business
- Rent a Car or Black car services
- Shuttle bus service
- Some rideshare options like Uber or Lyft
- Executive chauffeur services
What is Each Policy Specifically Designed for?
Policies that taxicab drivers hold do differ from other forms of business auto insurance and individual policies, but still share essential components that are common in business and personal coverages.
Taxi insurance can be broken down into various categories of coverage.
Liability Insurance
With liability insurance, you are covered for any property damage or bodily injuries you inflict on another driver in an accident. The expenses for medical treatment from a cab accident can be high; liability insurance will take care of that. It may also assist you with legal costs in case the other party decides to take legal action against you.
Collision Insurance
This floater compensates you for loss or damage to your cab after an accident. Regardless of whether the claimant was at fault or not, collision insurance pays the claim.
Comprehensive Insurance
Comprehensive insurance helps you recover damages to your cab resulting from an incident that is not collision-related (e.g., bad weather, fire, or theft).
Uninsured and Underinsured Motorist Coverage
If you are involved in an accident with a Motorist who holds no liability insurance, the uninsured/ underinsured motorist coverage will help you out. This will also cover the medical expenses and repairs done to your cab.
Personal Injury Protection (PIP)
PIP is the term for personal injury protection, which pays medical costs and replacement income that you and your passenger incur as a result of an accident in your cab.
While reviewing the previous list, you might be asking yourself why it is not possible to purchase personal auto insurance with the same coverage. The primary concern is the limit of the coverage and protection for business activities. Private vehicles are not used in the same way as taxis are.
Necessary Insurance For Taxi Policies
To obtain a taxi driver’s insurance, you will need to comply with a number of conditions. You should comply with them to be able to get coverage and, as a minimum, have lower premiums. There are some prerequisites for taxi policy:
- 25 and older – People below the age of 25 will find it difficult to obtain taxi insurance. So too may people over the age of 65.
- Vehicle Age – Older vehicles tend to be more difficult to insure.
- Operational Area – Similar to normal taxi insurance, taxi insurance only covers specific geographical areas. If you go beyond the specified zones, you may find yourself uninsured during an accident. There are also special requirements that states and cities may impose on cabs’ insurance.
- Driver background – Your age will definitely be a factor as well as your criminal record. For example, if you have been convicted of a serious crime such as Driving under the Influence or finally DUI, or Vehicle Manslaughter, then coverage will be extremely difficult for you to get.
How Much Does Taxi Cab Insurance Cost?
Taxi cab insurance is likely to be some of the most costly, surpassing the average rate for commercial auto insurance.
Annual taxi company insurance premiums range from $5,000 to $10,000. This translates into a monthly payment of $417 to $833. Due to the collision coverage risk of the cabs, the insuring company is likely to take the higher risks. They have more public interactions, so the chances of claims for liability from injury are also higher.
How much you pay for taxi cab insurance depends on various personal factors, as stated in your application. The auto insurance providers look at you, your drivers (if you have any), your cab, the miles driven, and your business to set your annual rates.
Below are some factors that can affect the rates of your cab insurance premiums.
- Years in business – An established cab business will impact the rates of your cab auto insurance. When you’re new to the industry, your premiums may be higher because you have less experience.
- Location – The place where you operate will determine your auto insurance premiums. If your operating area is populated, your likelihood of an accident increases, which may raise your premiums.
- Coverage limits – The extent of coverage you want on your auto insurance policy will determine the rates. Naturally, the higher the coverage, the higher the premium you will be paying annually.
- Age of vehicles – Older commercial vehicles may pose more trouble getting auto insurance. Additionally, the rates for older vehicles tend to be the most expensive.
- Type of insurance coverage – This will depend on whether you want public hire taxi insurance or private hire. Public-hire taxis generally command higher premiums.
- Experience – Your history will be part of the consideration. The less experience you have, the higher your rates will be. On the contrary, if you have a long history but a poor driving record, your rates might increase.
Locate Lower Prices on Insurance for your cab.
Your search for ways to cut costs on your cab coverage is understandable, especially with how expensive taxi insurance policies can get. Luckily, some ways can help reduce your yearly auto insurance premium. Some of these methods provide greater immediate relief, while others are more subtle and slow to lower or sustain a low cost.
You can locate reasonable premiums for your business insurance by following this helpful guide:
- Discounts – Some auto insurance providers offer several premia discounts. As an example, if you are willing to pay the entire premium in one go at the onset of the policy, then you stand to benefit significantly.
- Shop around – When looking for business insurance, ensure that you request quotes and check coverage from as many auto insurance providers as possible, both nationally and within your locality. Doing so promises that you will find the most reasonable rate available for your cab.
- Good driving record – Maintaining a good driving record as a cab driver and as a passenger helps in securing low premiums on your business cover. Remember, any claims you make will increase your rates.
- Adjust deductible – Higher auto insurance deductibles usually lead to lower premiums. However, it is prudent to know that increasing your deductible entails higher out-of-pocket expenses when a claim is raised. In the long run, increasing your deductible to save on your premium likely will not be worth the cost of a claim.
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