If you have your own comfortable car, you can try your hand at driving a taxi. It could become your main source of income—and a pretty good one at that. Or you could simply drive a taxi after your regular job to earn some extra money. But, as they say, there’s one small catch: taxi insurance. For cars that will be used for this type of work, the policy has its own specific requirements. OSAGO for taxis differs from the policy issued for a regular car.
How does OSAGO insurance for taxis differ from standard OSAGO insurance?
Online taxi insurance is purchased for the vehicle that will be used to transport passengers for a fee. This type of policy is distinguished by its more comprehensive coverage. This is due to the following factors:
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the vehicle spends more time on the road, meaning there is a higher likelihood of being involved in a traffic accident;
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the vehicle is used intensively, meaning it wears out faster;
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the insurance company’s liability is much higher;
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the vehicle transports passengers, meaning there will be more victims in the event of an accident.
And of course, if you’re wondering about the cost of taxi insurance, you should be prepared for it to be more expensive than a standard policy.
How much does taxi insurance cost?
Law No. 3720-IX “On Civil Liability Insurance for Vehicle Owners,” specifically Article 12, allows insurance companies to set their own prices for their services. When it comes to a taxi’s compulsory motor third-party liability insurance policy, a so-called “assignment coefficient” is applied. This coefficient multiplies the standard rate, sometimes by several times.
Now, let’s look at the cost in more detail. Let’s do a quick calculation. For example, for a one-year policy for a car with an engine up to 1.6 liters.
|
City |
For personal use |
Taxi |
|
Kyiv |
from 3 846 UAH |
from 23 786 UAH |
|
Irpin |
from 3 553 UAH |
from 19 539 UAH |
|
Boryspil |
from 3 182 UAH |
from 17 500 UAH |
|
Vyshneve |
from 2 432 UAH |
from 16 705 UAH |
If you need to purchase a OSAGO policy for a taxi, the same insurance will cost more in large cities than in smaller ones. The reason is that there is a higher concentration of vehicles in major cities, which means a higher likelihood of traffic accidents.
Can you drive a taxi without insurance?
Every taxi driver is required to obtain an insurance policy. This applies even to those who only occasionally use the car for work. But sometimes the cost of taxi insurance leads drivers to conceal the fact that the car will, even occasionally, be used as a taxi.
And here we must not forget that there is a fine for operating a taxi without insurance. This is stipulated in Article 11 of the Law of Ukraine “On Insurance of Land Vehicles.” The fine is five times the amount of the insurance premium, but not more than 50% of the payout.
And let’s not forget about traffic accidents. The insurance will cover the victims’ losses in full. However, it will also seek compensation from the car owner.