What is required of a for-hire vehicle in terms of insurance coverage?

For a for-hire vehicle, commercial auto insurance is required. This type of insurance is specifically designed to cover vehicles that are used for business purposes, including transporting passengers or goods for a fee. It provides broader coverage compared to standard personal auto insurance, which typically does not account for the unique risks and liabilities associated with commercial operations.

Having commercial auto insurance ensures that the driver of a for-hire vehicle is adequately protected against potential liabilities that can arise during the course of providing their services. This includes coverage for bodily injury and property damage, which are critical when operating a vehicle that is used to transport others. The specific requirements may vary by state, but in general, the need for commercial auto insurance reflects the increased risks involved in using a vehicle for hire, making it an essential component for compliance and safety in the industry.