Arizona Taxi Insurance Requirements

Arizona Taxi Insurance Requirements

Whether you are an established taxi driver or are thinking about becoming a taxi driver, you’ll want to understand the most current state laws regarding Arizona taxi insurance requirements. Having the right type of taxi insurance in the right amount of coverage can make the difference between being able to stay in service or going out of business.

The state authority for taxi licensing, regulation, and insurance requirements is the Arizona Department of Weights and Measures. Arizona Revised Statute 41-2051 defines a taxi as any vehicle registered as a taxi that offers local transportation of passengers based on a fare determined for the distance traveled. The financial responsibility pertaining to Arizona taxi insurance requirements was established with the addition of section 28-4039 under Section 8, Title 28, Chapter 9, Article 2, within the Arizona Revised Statutes House Bill HB2135 passed on April 9, 2015.

STANDARD LEVELS FOR ARIZONA TAXI INSURANCE REQUIREMENTS
The revised statute for Arizona taxi insurance requirements determined two different levels of standard responsibility.

Standard Level One
The first standard level is for taxi drivers on duty but not transporting any passengers. For this level, the taxi driver or the taxi company must maintain primary commercial vehicle liability coverage in the following amounts.
• $25,000 for bodily injury or death of one person resulting from one accident
• $50,000 for bodily injury or death of two or more persons resulting from one accident
• $20,000 for the destruction of or injury to the property of another person resulting from one accident

Standard Level Two
The second standard level is for taxi drivers providing transportation for passengers. For this level, the taxi driver or the taxi company must maintain primary commercial vehicle coverage in the following minimum amounts.
• $250,000 for vehicle liability insurance
• $250,000 for uninsured motorist coverage

In addition to having the required insurance coverage, a taxi driver must carry proof of required insurance in the taxi during all the time that the driver is available for transporting passengers. In the event that the taxi is involved in an accident, the taxi driver must provide the insurance information to all of the parties involved in the accident. The taxi driver also has the responsibility to notify the main office of the taxi company about the accident.

The above information is a summary of the Arizona taxi insurance requirements. While the state does not mandate comprehensive coverage, taxi drivers can purchase this type of coverage for damage or vandalism done to their commercial vehicles. Other commercial taxi-related insurance policies can be purchased to cover theft of business-related equipment such as a GPS or fare meters.

Adhering to the state insurance requirements is the best way to be assured that the taxi drivers, the taxi companies, the passengers, and the vehicles are protected if there is an accident.

Gary Hanson
Professional Insurance Strategies
P: (623) 463-9000 • F: (623) 463-9001 • E: ghanson@proinsgroup.com
2822 W Northern Ave. • Phoenix, AZ 85051
15331 W. Bell Rd, Ste 212, Surprise, AZ 85374 Mailing Address: 3655 W Anthem Way Ste. A 109 #283 • Anthem, AZ 85086 Auto*Home*Life*Commercial*Bonds*Workers Compensation*Property

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