What Really is Taxi Insurance and How Does It Work?
According to our research, about 7 out of 10 private cars in Mexico are uninsured. Despite the fact that it is a necessity on federal roadways and a symbol of accountability, the intended index has yet to be achieved. But what about taxis and other public transportation vehicles?
The response is rather more straightforward; first and foremost, they are required by law to purchase a civil liability insurance policy. To be allowed to circulate in the CDMX, each holder of a concession card must present a coherent policy.
Every day, 15.57 million journeys on public transportation are undertaken in the Metropolitan Area of the Valley of Mexico, according to government figures. Mexico City, the state of Mexico, and the municipalities of Hidalgo are all included. According to data, a bus, truck, or combination is used in about three out of every four trips. With over 4 million trips, the Metro is the second most used mode of transportation. With over 1.6 million visits, it is followed by the usage of taxis, whether on-site or free.
Private car and taxi insurance
The distinction between a private car and a public service vehicle is significant. Specifically, the danger of being involved in an accident. As a result, the amount of time spent on the road is taken into account, and businesses set their premiums based on the likelihood of an accident.
In particular, there is a distinction in public transportation. There is no connection between the driver and the passengers, which will be reflected in the insurance amount. It was handled with the Measurement and Updating Unit, just like in the quotes consulted. The Minimum Wage has been replaced as a reference measure by the Measurement and Updating Unit (UMA).
This should be emphasized that failure to have valid insurance in the case of taxis, for example, in Mexico City, carries a penalty. A fine of up to 40 UMA, or 2,921.06 pesos, can be imposed if you don’t have an insurance.
What should taxi insurance include?
We have to go into considerable detail once we understand the backdrop of taxis and insurance. Taxis must be insured for civil liability at the very least. In other terms, it protects passengers and third parties against harm to their persons or property.
In general terms, car insurance for taxis has coverage in three areas:
This compensation is only applicable while they are on board the vehicle, and it is limited to the following:
Accidentally inflicted bodily harm.
Surgery, hospitalization, nursing, ambulance, prosthesis, and medicines are all examples of medical help provided in the event of an accident on the unit..
Compensation for a temporary, partial, or total incapacity.
Funeral costs and reimbursement for a person killed in a traffic accident while riding in the insured vehicle or as a result of the accident.
Compensation for lost luggage or belongings is included in certain policies.
Either the policyholder or the driver of the car that caused the collision, which includes:
Liability for damage caused by the unit in civil court.
The driver’s legal defense as well as the bonds or surety bonds for the harm caused.
Medical bills, injuries, and death are all possible outcomes.
Damages to third parties
Damage to other drivers as a result of an accident caused by the insured vehicle. Junk cars for sale
Important points in car insurance for taxi
Each insurance provider has a section dedicated to taxis’ general terms and conditions. However, some criteria have been set that you must consider when hiring or purchasing taxi car insurance. Among them are the following:
The passenger’s coverage begins when he enters the vehicle and ends when he exits. That is, while the service is the sole thing functioning.
When the insured sum specified in the contract is exceeded, the company’s liability expires. When the limit is exceeded, the excess must be paid by the driver or owner of the vehicle. The relevant authorities will make this choice.
To be hired or renewed in Mexico City, insured taxis has to be less than 10 years old.
To rent insurance, the unit must have complete and legitimate documents. That is, it has issued plates indicating that it is a passenger vehicle. This type of coverage is not available for personal vehicles.
Only so-called free taxis, site taxis, airport taxis, and tourism taxis are covered under this sort of insurance. Another form of coverage is required for passenger services provided through mobile applications, such as Uber.
Taxi insurance quote
Guros used the pricing of a 2018 Chevrolet Aveo as a starting point for his research. The LS variant, manual, with air conditioning, radio, airbags, and ABS, was chosen for this test.
Following the standard steps for obtaining a quote. The car, which had taxi plates from Mexico City, was found near the Cuauhtémoc mayor’s office’s Juárez area, with the zip code 06600. Here is a quote for a Broad Coverage policy from four different insurers: Quálitas, Banorte, Afirme, and The Latin.
As we have seen in the case of private automobiles. When it comes to purchasing a product, price is not necessarily the most important consideration. As an example of the Guros exercise, there are other variations in addition to the cost of the policy.
While Qualitas is the most expensive, it also offers the smallest sum protected. Furthermore, they, along with Banorte, are the ones who charge the highest deductible in the event of total theft reimbursement.
A low-cost policy, on the other hand, might not be the greatest option. You could give the driver available amounts in medical expenditures or compensation in the event of death. As indicated in the insurance quote from Afirme. As a result, before deciding which firm to use for taxi insurance, each of the items should be analyzed and compared.