Glossary

1035 Exchange

A method of exchanging insurance-related assets without triggering a taxable event. Cash-value life insurance policies and annuity contracts are two products that may qualify for a 1035 exchange.

401(k) Plan

A qualified retirement plan available to eligible employees of companies. 401(k) plans allow eligible employees to defer taxation on a specific percentage of their income that is to be put toward retirement savings; taxes on this deferred income and on any earnings the account generates are deferred until the funds are withdrawn—normally in retirement. Employers may match part or all of an employee’s contributions. Employees may be responsible for investment selections and enjoy the direct tax savings.

401(k) Loan

A loan taken from the assets within a 401(k) account. 401(k) loans charge interest and are normally paid back through payroll deductions. If the borrower leaves an employer before a 401(k) loan has been repaid, the full amount of the loan is generally due. If the borrower fails to repay the loan, it is considered a distribution, and ordinary income taxes may be due, along with any applicable tax penalties.

403(b) Plan

A 403(b) plan is similar to a 401(k). A 403(b) is a qualified retirement plan available to employees of non-profit and government organizations.

All taxi drivers should think about Taxi insurance before going above and beyond simple vehicle insurance that regular road users must practice. As your vehicle is your source of revenue, as a taxi driver it is dynamic that you have the right cover to make sure that both you and your vehicle are safe to be on the roads carrying passengers at all times and you do not have to reject any business coming your way, all of which make sure that your flow of income is regular.

Taxi insurance protects more than traditional taxi cab set-ups. It may also consist of other businesses such as airport shuttle services, sightseeing tours, and certain rideshare risks.

Taxi insurance obligations

Your insurance company and the state you work in may have taxi insurance necessities you must meet. They can differ based on a wide range of factors that include:

  • City and state of action, as each state will have its own set of rules

  • Type of vehicle matters a lot, older cars may not be conventional

  • A driver should be above 25 and driving history under the age of 25 may not be accepted

Plaid with your local Department of Motor Vehicles (DMV) to acquire more about the state-specific prerequisites. Ask your insurance company about its inevitabilities.

Do you drive a conventional taxi cab?

Taxi cabs are usually painted yellow. However, some cities and states need taxis to be an altered color; sometimes a very specific one. It’s a worthy idea to check with your local taxi cab commissioner’s office to learn the rules you must follow to drive legally.

Taxi insurance cost

A taxi driver is familiar with that it’s not just the money that you earn from fares that is imperative. The cash you employ on your annual outgoings, like taxi insurance, can also have a big influence on whether you can meet the expense of to take the family away on holiday this year or not. Taxis are not cheap to drive, so keeping those running costs down means more income at the end of the year.

The cost of commercial taxi insurance ruminates many rating factors. Some of these include:

  • Location of operation

  • Driving record

  • Type and age of the vehicle(s)

  • Types and amount of coverage

Taxi insurance amounts vary depending on your selection to purchase your policy through a broker, an agent, or directly through an insurance company. It’s imperative to have a policy that both fits your budget and gives ample protection. You can get information regarding taxi insurance from financial advisor Birmingham Al.

Types of taxi insurance

Taxi insurance is basically the protection for taxi drivers and the vehicles they use as their taxis. There are many types of taxi insurance obtainable, which are dependent on the vehicle:

Public hire taxi insurance:

As public hire taxis do not require to be pre-booked, it may seem that insurance obligations for public hire vehicles are elevated, but in fact due to the affinity for older, more experienced drivers and what tend to be newer vehicles, insurance quotes can in fact be lesser. Public hire taxis provide ease to their customers when their vehicle is in proper functioning and they definitely require taxi insurance to make their vehicle as well as their passenger safe throughout the journey.

Private hire taxi insurance:

On the other hand, even though private hire taxis can be pre-booked and as a result may appear to be a lower insurance risk, due to their empathy for younger drivers and the vehicles themselves being older, this is not basically the case.

Minibus and MPV taxis:

For minibus and MPV taxis, as there will be a large number of people traveling within them, therefore, they will logically be in a higher insurance group, which in turn means more expensive premiums.

Difference between taxi insurance and regular motor insurance

The difference between taxi insurance and regular insurance lies in a range of factors. Initially, minicabs incline to travel a higher traveling distance each year than regular vehicles, meaning that there is more risk of an incident occurring and, as such, prices incline to be higher.

On the other hand, minibus insurance is even more as, unlike regular motor vehicles, they are being used to transport even more passengers so making premiums higher still. For all intents and purposes, cab drivers’ insurance policies reflect the distances they are traveling, the number of people they are responsible for, and whether they are a public or private hire taxi; all of which are factors that can seriously affect premium prices.

Why taxi insurance is obligatory?

Taxi insurance is dynamic since taxi drivers are in a position of accountability not only to themselves and their own safety but to that of their passengers. Without insurance, cabs are not covered should something happen to their vehicle, meaning that both they and their passengers are imperiled, both in financial and safety terms.

Is taxi insurance more costly than regular motor insurance?

Taxi insurance depends comprehensively upon the age of the driver, the amount of distance the vehicle is covering on a regular basis, and other factors including how many people the vehicle will be transporting.

With all this in mind, taxi insurance can be expensive, and definitely, it does incline to be more costly than regular vehicle insurance where drivers are not responsible for the safe transportation of members of the public who are paying them; somewhat, simply demanding cover for their day-to-day driving for them and their family or friends.

Things To Do In The Occurrence Of An Accident

  • Move to a safe place
  • Call the emergency services
  • Never admit legal responsibility at the scene
  • Exchange contact details
  • Take pictures of the accident if not dangerous to do so
  • Take note of registration, make and model of all cars involved
  • Call your friendly claims assistants

You should be kept in mind that, a taxi cab can be repaired or replaced, so protect yourself and any passengers above any personal items and your vehicle.