Driving a ride-hailing taxi? Here’s how to choose the right Casco insurance without getting in trouble

Getting Casco insurance for your car is always a good idea when you want extra security or if your car is in intensive use. For example, if you drive a taxi full-time or part-time, Casco insurance is highly recommended. However, Casco for taxis also costs more than Casco for regular cars, because taxis are associated with more intensive use and consequently more frequent accidents.  

When insuring a car, along with sharing details about the car and the driver, you’ll be asked to tell the insurance company if your car is in personal use or used as a taxi. While most car owners and drivers realize that honesty is the best policy and truthfully say their car is a taxi, there are cases when people want to save money by not revealing the true purpose their car serves. For example, some ride-hailing taxi drivers sometimes lie about their car’s use if they drive the taxi as a side hustle – only some days per week or some hours per day. 

In this article, we’ll tell you why it isn’t a good idea to misinform insurance companies. And we’ll suggest a way how ride-hailing taxi drivers can stay safe and insured while not overpaying.

 

What are the different vehicle use categories for Casco insurance?

First of all, let’s look at the various purposes cars can serve and how this impacts the insurance premium price. 

The most common car uses are:

• Regular/personal cars
• Taxis
• App taxis
• Cargo vans
• Cars participating in sports competitions

Insurance for taxis, cargo vans, and sports cars costs more because such cars are at a higher risk of suffering damage. For example, taxis and cargo vans are driving much more frequently than personal cars, therefore accident probability is higher.

Without further ado let’s talk about Casco insurance for taxis and explain how the relatively new insurance for app taxis works. 

 

Why you shouldn’t buy regular Casco (if you drive an app taxi)

In short, if you don’t insure your car under the right category, you might as well not insure it at all. 

There are cases when ride-hailing taxi drivers buy the correct taxi traffic insurance, but choose Casco insurance for a regular (personal car). This setup leaves a strong possibility that in case of an accident insurance providers will refuse to pay full compensation or even any compensation to you. 

It’s very simple for insurance companies to find out that the car isn’t insured in the right category. If an accident occurs (even if it happens while you’re driving it as a personal car) and it’s revealed that the Casco insurance is not adequate, the insurer has the right to refuse compensation. 

There are also cases when drivers try to trick the system. For example, they buy taxi driver Casco to register as a driver but then switch to regular Casco. In another scheme, they switch to the regular Casco when the first year ends. However, these are pointless scams because the insurance companies will anyway check the Casco status of the car at the time when the accident occurs. 

 

A solution for ride-hailing taxi drivers

In many cases, regular taxi insurance doesn’t offer the flexibility needed for ride-hailing drivers. Unlike regular taxi drivers with set work hours, many app taxi drivers work only part-time, therefore paying for taxi Casco is not financially viable for them. 

Let’s look at the example of Sam. Sam is a master’s student who studies full time from Monday to Thursday, using his car to go to the university and run personal errands. On Fridays and Saturdays he works as a BOLT taxi driver. And on Sundays he uses the same car for his personal needs. 

Traditionally, insurance providers don’t adjust the premium prices depending on how many hours you drive so Sam would have to pay full insurance price for his side gig. For Sam, it would be painful to pay the whole taxi Casco price for his car if he only drives as a taxi two days per week. In fact, his earnings would be much smaller, if he deducted the high premium price paid for the taxi insurance. 

Luckily, there is Casco insurance tailored for app taxi drivers. With this insurance, Sam’s Casco insurance price depends on the hours he drives a taxi and also on the area where he usually provides taxi services. For example, he can select taxi Casco insurance to be valid only on.