Buy/Renew Commercial Cab & Taxi Insurance Policy Online 2025

Most of India’s population depends on passenger carrying commercial vehicles for travelling and for most cab or taxi drivers, the taxi/cab car isn’t only a medium of transportation but also the primary source of income.

This is why it’s crucial to get it insured with a suitable cab insurance policy. Moreover, it is also mandatory by law in India to have at least a third-party taxi car insurance policy.

So, here’s a guide to buying or renewing commercial insurance for taxi/cab in India to help make the process quicker and hassle-free for you.

Taxi/cab insurance is a type of commercial vehicle insurance policy designed to cover taxi/cabs that are used commercially to carry passengers, against damage or loss in case of theft, accidents, natural calamities, and even third-party liabilities. It is different from car insurance because taxi insurance covers the additional risks associated with carrying passengers commercially and covers you financially in case of loss to your business due to damage to taxi/cab.

Yes, it is extremely important for all cabs and taxis to have a liability policy in place and even better, to have a standard/comprehensive package policy in place.

Moreover, if your primary business involves picking and dropping passengers on a daily basis- you must be prepared for all kinds of risks that your taxi and company may face!

A standard taxi insurance policy will protect and cover your company in case of any losses your taxi causes to a third-party property/person/vehicle and would also cover the insured taxi and the owner in case of any accidents, natural calamities, theft, malicious acts, etc.

All cars used for different commercial purposes, to transport passengers from one place to another are covered in commercial taxi insurance. Digit covers the following types of commercial taxis and cabs:

• Private Taxi Cars - If you are a private car owner, however, use the vehicle for commercial purposes, such as carrying passengers either for long or short distances, then it is essential to have commercial taxi car insurance online. This type of insurance safeguards you, your vehicle and even the passengers from potential losses or unforeseen incidents.
• Taxi/Cabs Used for Businesses - If you own multiple cars or even electric cars as taxi or cab to operate a business, it again becomes essential to insure all those taxi cars against any unforeseen losses or damage due to accident, natural calamities, or theft.

Digit also offers optional covers for commercial cab insurance, which provide enhanced coverage to protect in all circumstances, including:

• Personal Accident Cover
• Unnamed PA Cover
• Legal Liability Cover
• IMT 23 Cover
• Electrical Accessories Cover
• Non-Electrical Accessories Cover
• Special Exclusions & Compulsory Deductibles Cover

Given the number of options available today, it is important to pick a commercial car insurance that is simple, reasonable, protects and covers you and your business in all possible situations and most importantly, guarantees to settle claims as soon as possible. After all, that’s the most important part of an insurance!

Here are a few tips that will help you pick the right commercial car insurance for your taxi or cab:

• Right Insured Declared Value (IDV): IDV is the manufacturer’s listed selling price of the taxi or cab you want to insure (including its depreciation). Your premium will be dependent on this. While looking for the right taxi insurance online, make sure your IDV is stated correctly.
• Service Benefits: Consider services such as 24x7 Customer Support and a wide network of cashless garages, among others. In times of need, these services matter.
• Review Add-Ons: While picking the right taxi insurance for your car, consider the add-ons available to ensure maximum benefits.
• Claim Speed: It’s the most important aspect of any insurance. Pick an insurance company you know will settle claims quickly.
• Best Value: From the right premium and after services to claim settlements and add-ons; pick a taxi insurance that conveniently covers everything you think you will need at the best possible value.

It can be tempting to pick the cheapest cab insurance available. However, while comparing different taxi insurance quotes, consider factors such as service benefits and claim settlement periods.

Weighing in important factors is important to ensure your vehicle and business are safeguarded against all the odds:

• Service Benefits: Great services really matter in times of trouble. Make sure to evaluate the services each insurance company is offering and make a sound choice accordingly. Some of the services Digit offers are 24*7 Customer Care Support and Cashless Garages among other services.
• Quick Claim Settlement: The whole point of insurance is to get your claims settled! So, make sure you pick an insurance company that will guarantee quick claim settlements. 96% of Digit’s claims are settled within 30 days! Additionally, we have a zero-hardcopy policy, which means we only ask for soft copies. Everything is paperless, quick and hassle-free!
• Check your IDV: A lot of cab insurance quotes online will have a low IDV (Insured Declared Value), i.e. the manufacturer’s selling price of your commercial vehicle. While the IDV affects your premium, it also makes sure you get your right claim at the time of a settlement. The last thing you want during a theft or damage is to find out your IDV was low/at the wrong value! At Digit, we give you the option to set your IDV while buying your commercial vehicle insurance policy online.
• Best Value: Finally, pick a taxi insurance that gives you a fair combination of it all. The right price, services and of course, quick claims!

The following factors significantly affect your taxi insurance online price:

• Model, Engine & Make of the Vehicle: For any kind of motor insurance, the car model, make and engine are extremely important in determining the right insurance premium. Therefore, based on whether your car is a sedan, hatchback or an SUV and, the manufacturing year of the same- all of it would be factored in to actuate your cab’s insurance premium. 

• Location: Your taxi’s insurance premium may differ based on where your taxi is registered. This is because each city is different and comes with its own set of problems such as bumper to bumper traffic, crime rates, road conditions, etc. Therefore, a taxi being driven in a metro city like Mumbai, Bangalore, Hyderabad or Delhi would have a higher taxi insurance premium, as compared to one being driven in a city like Surat or Kochi, among others.

• No-Claim Bonus: If you’ve already had a cab insurance before and are currently looking to renew your policy or get a new insurer- then in this case your no claim bonus will also be considered, and your premium will be at a discounted rate! A No-Claim Bonus means your cab hasn’t had a single claim in the previous policy term.

• Type of Insurance Plan: Your taxi insurance price will depend on the kind of plan you choose. While the third-party liability only plan comes with a lesser premium, a standard package policy costs more.