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Investigation Finds Boston, MA Cabs Seriously Underinsured

In a recent article published by Boston.com, the Boston Globe Spotlight Team found that Boston Cab Company, in addition to other Boston taxi companies, remains dangerously underinsured, and keeps passengers and victims of cab accidents at risk.

According to the Spotlight Team, most of the Boston Cab Company cars operate with the minimum amount of required insurance to cover serious injuries. The $20,000 minimum coverage is only fraction of what most motorists on the road today have in coverage; less than half of what is required for bicycle messengering services in Boston ($50,000), and only a tiny fraction of that required of black livery cars at Logan Airport ($1 million).

The major problem with having such minimal insurance is the limited protection and compensation for victims involved in taxi cab accidents. Elizabeth Rideout and her mother, for example, were both injured when a cab driver lost control of his vehicle, jumped a curb, and struck them while they were standing outside of a Logan Airport terminal. Rideout’s mother was dragged under the car’s axel and sustained injuries that left her hospitalized in Intensive Care for eight months. Boston Cab Co. initially offered $8,000 in compensation, and then increased their offer to no more than $20,000 stating that was all they were liable for.

Boston Cab Company, whose fleet is trademarked by brown and white cars, is owned by Edward J. Tutunjian. Boston Cab has the city’s largest fleet and controls 1 out of every 5 of the 1,825 licensed taxis driving in Boston.

Most people who get into a cab probably do not realize that there is such limited insurance coverage available for taxi cabs. If the driver were to get into an accident and cause substantial injuries to its passengers, there is a strong possibility that the coverage will not meet the needs of the injured passenger. The only way for the passenger to collect the necessary insurance proceeds is if he or she has an active insurance policy with optional bodily injury coverage in excess of $20,000. Many people do not know if they have such additional coverage. It is always a good idea to call your insurance agent to make sure that you have this optional coverage available to you.

The issue of underinsurance is not a new one. It is long overdue for the Massachusetts Insurance Board to look at these findings and hopefully make the necessary changes for cab drivers and companies to have increased coverage. If you have been injured in a cab accident and have questions about what insurance coverage may be available to you, give our experienced taxi cab accident attorneys a call for a free consultation. We are available around the clock to answer any questions you have.

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