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Car accidents are unfortunately a common experience for taxi drivers. The fallout from these taxi accidents can include injury to passengers, pedestrians, the driver, and property damage. Personal car insurance won't cover these situations, which is why companies that employ or contract with drivers need insurance that includes taxi coverage. Most taxi-involved car accidents stem from a few common causes. By recognizing what causes car accidents, your business can work to prevent accidents and keep your taxi insurance premiums low.

Fatigued Drivers

Taxi drivers make their money from the number of fares they handle during their shift. This can make them stay out longer or work more often than they should. As fatigue sets in, drivers become increasingly impaired, which raises the chance of an accident occurring.

Inattentive Drivers

Making phone calls, texting, or otherwise giving your phone more attention than the road is a real safety hazard. According to the National Highway Traffic Safety Administration, distracting driving led to 2,841 deaths in 2018. Drivers comprise most of those deaths, but this type of accident took to the lives of cyclists, passengers, and pedestrians, too.

Traffic Violations

Legislators designed the rules of the road to keep people safe. When a driver breaks those rules, it can endanger lives and property. Even as something as simple as changing lanes without signaling can lead to a potential accident. However, other common driving infractions lead to taxi-involved accidents:
  • Failing to yield before turning left
  • Not stopping at red lights or stop signs
  • Speeding or otherwise aggressive driving
Beyond the potential damage or injury, if a taxi driver causes an accident due to breaking the law, they may pay a higher taxi insurance cost through increased premiums.

Vehicle Break Downs

Generally, taxi drivers are responsible for keeping their vehicles maintained. Most taxi insurance companies also require a car to be drivable for them to cover it. Still, many drivers will take their taxi on the road without the needed maintenance. Broken or damaged brakes, malfunctioning seat belts, and worn-out tires are common issues that require repair, or insurance companies, as well as the courts, could hold the driver liable should an accident occur.

About American Risk Management, Inc.

American Risk Management, Inc. (ARM), along with its predecessor entities, has provided public auto business owners with coverage for their vehicles and operations since 1938. We provide coverage to taxis, sedans, limousines, ride-sharing vehicles, sightseeing tours, courtesy shuttles, school shuttles, last-mile delivery, and couriers across the Washington, D.C. metro area. Our expertise and experience in the commercial transportation industry allow us to provide our clients solutions that fit their unique risk profiles. To learn more about what we can offer you, call us today at (202) 547-8700.