Paying passengers need a commercial auto policy.
Liability, physical damage and workers’ comp for taxi companies, black car and executive sedan services, and owner-operators who carry passengers for hire.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
A personal policy stops at the fare
Most personal auto policies exclude a car while it’s used as a public or livery conveyance, which is insurance language for carrying people for hire. The California Department of Insurance points to that exclusion in its notice to rideshare drivers; the only carve-out in the typical wording is a share-the-expense car pool. A taxi, a black car or a livery sedan is insured on a commercial auto policy written for passenger transportation, not on the policy you’d buy for the family car.
Who regulates you depends on the service. In California, taxicab service is regulated by cities and counties, while prearranged charter service is regulated by the California Public Utilities Commission, which issues TCP permits and sets liability minimums by how many passengers a vehicle seats. Other states and cities have their own rules, and interstate for-hire passenger carriers have federal minimums too. I start with the permit you hold or need, then quote the policy and filings that go with it.
- Auto liabilityAt the minimum your permit requires, which in California rises with seating capacity.
- Physical damageCollision and comprehensive on the sedans, SUVs and vans themselves.
- Workers’ compFor employee drivers and staff, filed with the CPUC when a TCP carrier has employees.
- FilingsProof of coverage the insurance company files with the regulator, kept current so the permit stays active.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Vehicles: year, make, model, VIN, seating capacity and value.
- Drivers: names, dates of birth, license numbers and years of experience.
- Permit: your TCP number or city taxi permit, or that you’re applying.
- Operations: airport, corporate, events or street hail, with rough percentages.
- Drivers’ status: employees or independent contractors.
- Current policy: declarations page and loss runs.
Taxi and black car insurance, answered
Does my personal auto policy cover driving a taxi or black car?
Usually not. The California Department of Insurance notes that most personal auto policies exclude a vehicle while it’s used as a public or livery conveyance, meaning driving for hire. The typical wording only carves out a share-the-expense car pool, so paid passengers need a commercial policy.
Who regulates taxis and black cars in California?
Taxicab service is regulated locally by cities and counties. Charter-party carriers, which provide prearranged service for the exclusive use of a person or group, need operating authority from the California Public Utilities Commission. A P permit covers charter service using only vehicles that seat 15 or fewer passengers.
How much liability does a black car need in California?
The CPUC minimum depends on seating: $750,000 for vehicles seating 7 or fewer passengers, $1.5 million for 8 to 15, and $5 million for 16 or more. Class C charter-party carriers need $750,000 regardless of seating.
What happens if my coverage lapses?
The CPUC says failing to keep adequate, current insurance results in suspension of your operating authority, and revocation if it isn’t corrected within 90 days of the suspension date. Insurance filings are made electronically through the CPUC’s Transportation Carrier Portal.
What if I carry passengers across state lines?
For-hire passenger carriers in interstate commerce have federal minimums: $1.5 million for vehicles seating 15 or fewer including the driver, and $5 million for 16 or more. Tell me where your trips go so the policy and filings match.
Do you offer taxi and black car insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in 48 states and Washington, DC and places policies there directly. In Florida and Washington, where Sam's licenses are still being issued, a partner agency in your state helps in the meantime. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Official sources
- California Public Utilities Commission: Passenger carrier FAQs (charter-party carriers, taxicab exception, liability minimums)
- California Public Utilities Commission: Insurance requirements for passenger carriers (filings, workers’ comp, suspension)
- California Department of Insurance: Notice to transportation network company drivers (livery exclusion)
- 49 CFR 387.33T: financial responsibility for for-hire motor carriers of passengers
Send your vehicles and drivers. I’ll shop it.
A vehicle list with seating, a driver list and your permit number are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.
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(877) 711-4545Answered 24/7 · CA License #4348151
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