Some Tips You Need to Know Before Buying Taxi Insurance Online

Choosing between a wide range of taxi insurance policies may look like an enormous task when you are looking for a suitable one online. However, it is not as difficult as it might seem initially, when you follow a few tips that will streamline the selection process.

Here are some guidelines to help you select a suitable taxi insurance policy.

TIPS ON HOW TO CHOOSE FROM THE TYPES OF TAXI INSURANCE PLANS

The types of taxi insurance plan can be broadly classified into two:

Third Party Car Insurance: Also referred to as Liability Only Car Insurance, it has been made mandatory for all taxi owners by the Motor Vehicles Act, 1988. This provision by the law covers any damage, death or injury caused by the insured to a third party property or individual. Every taxi should be able to furnish a valid third party car insurance that mentions accurate details of the insured whenever they are on the road.

The policy documents of taxi insurance plans mention the limit of indemnity that they offer for third party damage. Additional claim amount that arises over and above this maximum limit has to be borne by the taxi owner himself. When you are looking for taxi insurance online, make sure that you research thoroughly and carefully read through the policy terms and conditions, so you know what to expect.

Under the third party insurance plan, insurance companies offer an inbuilt personal accident cover for taxi owner, while a cover for paid driver and cleaner is separately available under a comprehensive insurance policy that is optional. If your taxi is self-driven, ensure that the comprehensive insurance policy that you opt for covers you for injuries from accidents. If you have employed a driver, decide whether you would like to get him insured too and select a comprehensive insurance policy accordingly.

Comprehensive Car Insurance: This insurance policy is better than its counterpart as it covers the insured against a wider range of damages and injuries caused by accidents and activities, both natural and man-made. It covers events that are not available under the third party insurance plan. The following are some reasons why this policy scores over the third party type.

1. Covers natural calamities – This policy covers the insured taxi against the vagaries of nature like floods, earthquakes and landslides.
2. Covers loss due to man-made activities – A comprehensive insurance policy covers your taxi against loses from activities perpetrated by humans, like theft and burglary, riot and terrorist activities, saving the insured from unnecessary financial expenses.
3. Covers third party insurance – This policy covers injuries and damages caused by the insured to third party or property.
4. Optional Additional Covers – An additional premium enables the insured to avail certain other add-on covers, such as:

• Additional Personal Accident Cover for taxi owner, and employed driver
• Cover for passengers with known and unknown identities
• Additional cover for bumpers, bonnet, tyres, headlights, lamps and paintwork for damaged parts
• Legal liabilities for paid driver of the insured taxi and passengers

TIPS ON MAKING THE MOST OF THE AVAILABLE DISCOUNTS

Why leave out on some available discounts when it will enable you to buy your chosen insurance policy at a lower premium amount? Here are some tips on how you can go about it.

• Make a conscious choice: Research well on the available taxi insurance policies of different insurance companies and that is your first step towards buying taxi insurance online. Go through the insurance covers as it helps in knowing what each of these companies have on offer, making it easier for you to shortlist a few companies that meet the unique requirements. Finally, a comparative analysis of all these shortlisted companies will enable you to select a policy that best suits your needs.
• Avail the No Claim Bonus: When no claims have been made in the past year or years by the insured, he is eligible for redeeming the accumulated bonuses when he renews the taxi insurance. A policyholder is usually eligible for a 50% discount on the renewable premium when no claims have been made in five consecutive policy years. To plan long-term, ensure that your preferred taxi insurance policy offers this.
• Make use of all available discounts: Applying for a taxi insurance online often makes you eligible for availing further discounts when you fulfil certain criteria. Explore the discount options and avail them to opt for a lucrative taxi insurance policy.

Keep in mind the above tips to buy an online taxi insurance policy that meets your needs.

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