Although VTC and taxi insurance cover vehicles used for similar purposes, they have important differences in terms of guarantees, regulations and risks.
1. Legal Framework and Regulations
Taxis and VTCs are subject to different regulations. Taxis must have a taxi license issued by the prefecture, while VTCs must obtain a VTC professional card. This distinction impacts the types of guarantees and insurance requirements.
Key differences:
- Taxis : Are allowed to pick up passengers without reservation (hailing) and park in specific areas. This exposes them to additional risks, such as incidents related to picking up unexpected customers.
- VTC : Must be booked in advance and are often less exposed to traffic hazards or unexpected passengers.
2. Professional Civil Liability
Both types of vehicles require professional liability insurance, but the risks are different. Since taxis often have large numbers of unexpected passengers and short journeys, their liability coverage is often broader.
Specific requirements:
- Taxis : More exposed to the risk of minor accidents due to frequent stops and hailing.
- VTC : More limited risks, often linked to longer journeys and passengers booked in advance.
3. Damage and Theft Guarantees
Taxis are often more prone to vandalism or property damage, due to their parking in specific areas (train stations, airports). VTCs, on the other hand, are often driven by their owner and are perceived as presenting a lower risk in terms of damage.
Damage guarantee:
- Taxis : Extended coverage for frequent damage (accidents, vandalism).
- VTC : Reduced risk of damage thanks to more controlled vehicle management.
4. Troubleshooting Assistance
Breakdown assistance is essential for both types of drivers, but taxis with a more intense work schedule and multiple short journeys may need faster and more frequent assistance. VTCs, often booked for longer journeys, must also guarantee a continuous service, but with slightly different needs.
Differences:
- Taxis : Breakdown assistance often more frequent and with additional services (immediate replacement vehicle).
- VTC : Assistance adapted to long journeys, with less urgent options.
5. Loss of Operation
Both professions can be impacted in the event of vehicle immobilization, but taxis, due to their total dependence on their vehicle to carry out short and numerous trips, may need more extensive business interruption coverage than VTCs, which, although also affected, often depend on regular customers.
Why is it different?
- Taxis : Need immediate coverage to avoid losing income while the vehicle is immobilized.
- VTC : Impacted by loss of revenue, but often with more flexible options in terms of customer management.
Conclusion
Taxi and VTC insurance , although similar, are distinguished by different risks linked to their operating mode. As a broker , offering tailor-made coverage adapted to each type of vehicle is essential to offer your customers relevant and comprehensive solutions.
Contact KT Courtage today to access insurance offers tailored to taxis and VTCs to meet the specific needs of your customers.