Vehicle maintenance The performance of a vehicle depends upon its condition.
Regular maintenance and servicing will keep the vehicle healthy and the performance of the vehicle will be high.
All vehicles that are used for public transport have to undergo checks once or twice a year and get certification for eligibility for ferrying passengers.
Insurance companies lay a lot of emphasis on this certification.
The premiums can change every year based on the quality check of the vehicle.
Insurance agents also get a check done on the taxis on a yearly basis.
By maintaining the vehicle well, you can ensure that the taxi passes the quality check with a high grade.
Age of the vehicle Age of the vehicle is another factor that influences insurance.
Vehicles that are old are charged higher premiums.
The reasons for this are many.
Firstly, older vehicles suffer more wear and tear and pose higher risk of breakdown.
Secondly, as new models of vehicles are released into the market, it becomes difficult to acquire spare parts for repair and maintenance.
Finally, as a vehicle ages, the fuel consumption increases unless it is very well maintained.
Thus, the cost incurred in running the vehicle increases.
Based on all these factors, older taxis are charged higher premiums than new taxis.
Size of the vehicle Size of the taxi refers to the number of passengers that it can hold.
Taxis carrying more number of passengers will be charged higher premiums since more number of people stand risk of injury in case of accidents.
Since taxi, companies have to bear the expense of damage to life and property of passengers and third party, the premium will be higher for taxis that carry more number of people.
Distance traveled per day Mileage is an important factor that influences insurance.
Most of the insurance companies put limits on the number of miles a taxi can travel per day.
This is to prevent wear and tear of the vehicle and keep it in optimum condition for a longer duration.
Therefore, drivers have to be trained to keep tabs on the mileage.
Further, excessive driving exhausts the driver and increases the risks of accidents.
This is the major reason why insurance companies limit the number of kilometers driven per day.
Number of vehicles The number of vehicles owned by a company greatly impacts taxi insurance.
If a company owns more number of vehicles, then the owner can opt for fleet insurance.
Fleet insurance is cheaper when compared to the sum total of individual vehicles.
However, insurance companies require a specific number of vehicles to provide taxi fleet insurance and in most cases, the minimum number of vehicles is four.
Nevertheless, there are many insurance companies that offer more freedom and insure fleets lesser than four.
The major advantage of fleet insurance is that it saves a lot of time, effort and money.
The insurance is more organized since all the vehicles are under one policy cover.
Insurance companies encourage the practice of purchasing fleet insurance by offering more discounts.
Regular maintenance and servicing will keep the vehicle healthy and the performance of the vehicle will be high.
All vehicles that are used for public transport have to undergo checks once or twice a year and get certification for eligibility for ferrying passengers.
Insurance companies lay a lot of emphasis on this certification.
The premiums can change every year based on the quality check of the vehicle.
Insurance agents also get a check done on the taxis on a yearly basis.
By maintaining the vehicle well, you can ensure that the taxi passes the quality check with a high grade.
Age of the vehicle Age of the vehicle is another factor that influences insurance.
Vehicles that are old are charged higher premiums.
The reasons for this are many.
Firstly, older vehicles suffer more wear and tear and pose higher risk of breakdown.
Secondly, as new models of vehicles are released into the market, it becomes difficult to acquire spare parts for repair and maintenance.
Finally, as a vehicle ages, the fuel consumption increases unless it is very well maintained.
Thus, the cost incurred in running the vehicle increases.
Based on all these factors, older taxis are charged higher premiums than new taxis.
Size of the vehicle Size of the taxi refers to the number of passengers that it can hold.
Taxis carrying more number of passengers will be charged higher premiums since more number of people stand risk of injury in case of accidents.
Since taxi, companies have to bear the expense of damage to life and property of passengers and third party, the premium will be higher for taxis that carry more number of people.
Distance traveled per day Mileage is an important factor that influences insurance.
Most of the insurance companies put limits on the number of miles a taxi can travel per day.
This is to prevent wear and tear of the vehicle and keep it in optimum condition for a longer duration.
Therefore, drivers have to be trained to keep tabs on the mileage.
Further, excessive driving exhausts the driver and increases the risks of accidents.
This is the major reason why insurance companies limit the number of kilometers driven per day.
Number of vehicles The number of vehicles owned by a company greatly impacts taxi insurance.
If a company owns more number of vehicles, then the owner can opt for fleet insurance.
Fleet insurance is cheaper when compared to the sum total of individual vehicles.
However, insurance companies require a specific number of vehicles to provide taxi fleet insurance and in most cases, the minimum number of vehicles is four.
Nevertheless, there are many insurance companies that offer more freedom and insure fleets lesser than four.
The major advantage of fleet insurance is that it saves a lot of time, effort and money.
The insurance is more organized since all the vehicles are under one policy cover.
Insurance companies encourage the practice of purchasing fleet insurance by offering more discounts.
SHARE
