What must for-hire vehicles carry in terms of insurance?

For-hire vehicles are used for transporting passengers or goods in exchange for payment, which subjects them to different risks compared to personal vehicles. Therefore, they must carry commercial auto insurance. This type of insurance is specifically designed to provide coverage for vehicles that are used for business purposes, including ridesharing, taxis, and delivery services.

Commercial auto insurance offers broader coverage options and higher liability limits, given that for-hire vehicles are at a greater risk of being involved in accidents due to their operational nature. It covers not only bodily injury and property damage but also provides protection if the driver is at fault in an accident while carrying passengers or cargo for hire.

In contrast, personal liability insurance is meant for personal use vehicles and may not offer adequate coverage if the vehicle is used for commercial activities. Basic state-required insurance may fulfill minimum legal requirements for personal vehicles but does not provide the necessary protections that commercial operations demand. Lastly, no insurance being needed would leave the vehicle and its operator unprotected against potential liabilities that could arise from their business activities.