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The Insurance Your TLC Ride Deserves:
Automobile Liability only vs. Full Coverage
​(Automobile Liability + Physical Damage)

What These Policies Mean for Your Vehicle—and Your Business

As a professional driver in the passenger transportation business—whether you’re a taxi driver, ride-hailing  pro, limo chauffeur, or ambulette operator—your vehicle is your livelihood. It’s not just getting you from point A to B; it’s paying the bills and supporting your lifestyle. That’s why having the right insurance is so important. Here at Interwest United Insurance Brokerage, we pride ourselves on understanding the kind of coverage you need to keep rolling, no matter what bumps you hit on the road. 

There are two critical types of insurance for drivers like you: TLC Auto Liability insurance and Physical Damage insurance. Let’s break down what each one does, what it doesn’t do, and why both are the perfect combination for your peace of mind. 


What Auto Liability Insurance Covers

First things first—Auto Liability insurance is legally required by TLC (Taxi and Limousine Commission) for drivers like you in many areas. But what does Auto Liability actually protect you from?
  • Liability Coverage: This is the big one. Auto Liability  insurance steps in when you’re at fault for an accident. It covers damage to the other car (or property), and pays for any medical bills of the people you hit. Think of it as coverage that says, “Hey, I’ve got you covered—for the other guy.”
  • Third-Party Property Damage: Accidentally back into someone’s car, or take out their mailbox? No problem. Auto Liability insurance covers the cost of repairing any property you’ve damaged.
  • Bodily Injury Protection: Got passengers in your vehicle? If they get injured during an accident, Auto Liability insurance covers their medical bills. It’s your “I’ve got my passengers’ backs” coverage. 


What Auto Liability  Insurance Doesn’t Cover

  • Damage to Your Own Vehicle: Auto Liability insurance doesn’t pay for the damage to your own car. If you get in a wreck, you’re on your own for repairs unless you have additional coverage. 
  • Theft or Vandalism: Someone steals your car or smashes your window? Auto Liability insurance isn’t helping here either.
Why Auto Liability Coverage Matters: Auto Liability insurance is the foundation of your coverage—it keeps you legally compliant and protects you from those big, expensive liability claims. But what about your vehicle? That’s where Physical Damage insurance comes in. 


What Physical Damage Insurance Covers

Auto Liability insurance has your back when you accidentally hit someone else, but what happens when your own car gets dented , totaled, or stolen? That’s where Physical Damage insurance saves the day. 
  • Collision Coverage: Whether you hit someone or someone hits you, Physical Damage insurance covers the repairs to your vehicle. Got in a fender bender? Vehicle lost control and ended up rolling over, tipping on its side, or flipping upside down? No sweat—this coverage pays to get your vehicle back on the road ASAP. 
  • Comprehensive Coverage: Physical damage also protects against non-accident incidents, like theft, vandalism, flood, or even a random falling tree branch. It’s the “what if?” coverage for all those unpredictable moments. 
  • Repair or Replacement: If your car is beyond repair or gets stolen, Physical Damage insurance will help you replace it. After all, without your car, there’s no business.


What Physical Damage Insurance Doesn’t Cover

  • Liability for Others’ Property or Injuries: This coverage isn’t about the other guy; that’s what Auto Liability insurance handles. Physical Damage insurance is all about taking care of your vehicle. 
Why You Need It: You rely on your vehicle for work, and without it, your business is parked. Physical Damage insurance is what keeps your wheels turning—literally. Whether you’re dealing with a fender bender or your car’s been stolen, this coverage makes sure you’re not left stranded. When buying a car involves financing, the owner becomes legally obligated to carry Physical Damage coverage for up until balance is paid. What if the vehicle gets severely damaged and considered a total loss? Without Physical Damage you might end up owing balance to the finance company for the car you no longer have!


Auto Liability  + Physical Damage = The Ultimate Insurance Duo

For commercial passenger drivers like you, both of these coverages are essential. Auto Liability insurance is legally required in most areas so drivers can cover liabilities and protect others when at fault. But Physical Damage insurance is a legally optional coverage that takes care of you and your ride. When combined, these two policies make sure that no matter what happens—whether it’s a run-in with a distracted driver or an unlucky encounter with a thief—you’re covered. That is why the combination of these coverages is called Full Coverage.


Here’s How They Work Together

  • Accidents Happen, But You’re Covered: Auto Liability insurance covers the other car and driver, while Physical Damage insurance handles your vehicles repairs or replacement. 
  • No Car, No Business: Whether it’s a collision or theft, Physical Damage insurance makes sure you’re back behind the wheel quickly, so you don’t lose valuable work days.
  • ​Keep Moving Forward: The combination of both Auto Liability and Physical Damage coverages ensures you’re always ready for the next fare, the next passenger, and the next ride.


Real-Life Scenarios

What’s the worst that could happen? Let’s put these coverages into action with some real-world examples:

Scenario 1: The Bumper Bash
You’re on your way to pick up a passenger when a careless driver suddenly cuts in front of you and you have no time to stop. 
  • Auto liability Insurance: Covers the damage to the other car and any injuries to the other driver, if you are proven to be at fault for this collision.
  • Physical Damage Insurance: Covers the repair of your vehicle, so you’re not stuck paying out of pocket.

Scenario 2: The Missing Vehicle
You finish a long shift, park your car, and come out the next morning to find… nothing. Your vehicle’s been stolen. 
  • Auto liability Insurance: Won’t help you here.
  • Physical Damage Insurance: Steps in to cover the replacement cost of your stolen vehicle, so you can get back to work as fast as possible.

Scenario 3: The Passenger Problem
A rushing passenger suddenly opens the door without checking for passing traffic, hitting the passing car and smashing your door. 
  • Auto Liability Insurance: Will  pay for the repairs to the passing vehicle.
  • Physical Damage Insurance: Covers the repair costs to your car, ensuring your vehicle is back in business. 

Scenario 4: The Animal Encounter 
A deer jumps into you on a highway, severely damaging the front end of your vehicle. 
  • Auto Liability Insurance: Doesn’t apply to animal-related incidents and damage to your vehicle.
  • Physical Damage Insurance: Covers the repair costs, ensuring you get back on the road quickly and safely after such an unfortunate event.


Get Protected Today

At Interwest United Insurance Brokerage, our mission is to make sure you have the right coverage for your business. Whether you’re driving a taxi, ride-hail vehicle like Uber and Lyft, car service, limousine, or ambulette, we understand the challenges you face. Let us help protect your ride, your livelihood, and your peace of mind. 
Ready to make sure your coverage is complete? Request a quote now or call us at (718) 645-0001.
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​Protect Your Transportation Business & Save on Insurance:
Download Your Free Checklist!