Insurance or what is commonly known as protection refers to the difference amid the actual value of the taxi and the amount of money which you owe on your taxi in the form of a loan or debt. Insurance is also known as ‘totaled insurance’. Under normal circumstances, the insurance provided on any taxi covers all the costs in case it is damaged or stolen or need some repairs. However, under taxi insurance, the gap insurance company will pay for the repairs or the damages incurred in the taxi only if the actual cash value of your taxi and the present condition of the taxi is more than the amount which you owe on the loan balance or the lease.
On the other hand, the taxi insurance company is not liable to pay you anything if the gap amid the actual cash value of your taxi and the balance amount of loan owed by you is less. In other words, gap insurance or gap protection is mainly aimed at covering the difference or gap between the taxi value and the taxi loan. Since gap insurance is provided by the taxi insurance companies depending upon different factors therefore you need to choose one which suits you best and gives you maximum benefit. For this, some factors may give due consideration.
Insurance covering the excess amount on the taxi insurance- Such type of gap insurance is most beneficial for all taxi owners as they can get reimbursement from the taxi insurance company which is covered by counting it towards the excess or maximum amount of your taxi insurance. This way you may get all costs covered in case your taxi undergoes any damages or need some repairs.
Level of cover for the gap insurance- Different taxi insurance companies may be offering different value for the gap insurance in the form of maximum level of cover for any damages incurred by the taxi. It means you have to choose the cover for gap insurance which is aimed at covering the gap or difference amid the actual purchase value of your taxi and amount of insurance payout. It is always recommendable to choose such a gap insurance which covers the maximum value.
Gap insurance covers time limits- It is also an important factor to consider when choosing gap insurance for your taxi. Select the one which covers the maximum limit of time say 5-7 years or even more. It will be beneficial for you as your taxi will remain protected for a long time in terms of insurance cover.
Age of the taxi- it is another important factor worth considering while choosing gap insurance for your taxi. It is because most insurance companies consider ‘how old the taxi is’ while offering insurance. It depends upon the age of the individual taxi. If you have a brand new taxi, choose gap insurance accordingly otherwise go for such gap insurance which covers maximum age of the taxi.
Keeping all these points in mind, you may select the best insurance for your taxi and get it insured from any reputable company.