For-Hire Insurance Requirements
"For-hire" is the business of carrying or transporting passengers for direct or indirect compensation. This includes private rental vehicles that are leased or rented to an individual or organization who is not the title owner (while the registration remains in the owner’s name).
A direct fee includes the charge a person pays to ride a bus, be driven in a taxi, or rent a vehicle. An indirect fee includes the charge that a daycare charges to take care of your child and provide transportation of your child to a park or event in a vehicle owned by the daycare.
As of April 2021, the minimum and maximum liability for for-hire vehicles has been amended.
Exempt Vehicles
If you have a for-hire vehicle, you must have for-hire vehicle insurance.
The only exceptions are buses and ambulances that do not carry passengers for a fee. Bus and ambulance operators must complete the Exempt Vehicle Certificate (PDF) (MV-197) form and submit it to DMV when you register the vehicle. You must provide your Insurance Identification Card (FS-20) in place of a FH-1 or FH-1B Certificate.
Registration and Policy Periods
For-hire registrations and insurance policy periods last one year. Refer to the chart below to find your registration expiration date and policy period.
VEHICLE CLASS CODE | VEHICLE TYPE | REGISTRATION EXPIRATION | POLICY PERIOD |
---|---|---|---|
53 OMF | Bus (franchise) | 02/28 | 03/01 - 03/01 |
56 OMR | Bus (regular) | 02/28 | 03/01 - 03/01 |
52 OMS | Rental (private daily) | 09/30 | 10/01 - 10/01 |
57 OMV | Rental (private daily vanity) | 09/30 | 10/01 - 10/01 |
19 SCL | School Car | 12/31 | 01/01 - 01/01 |
20 HIR | Hearse / Invalid Coach | 12/31 | 01/01 - 01/01 |
51 AMB | Ambulance | 12/31 | 01/01 - 01/01 |
54 OMT | Taxi | Staggered | Varies |
55 OML | Livery | Staggered | Varies |
Insurance Documents for Registration
You must provide an Insurance Certificate (FH-1) or Corporate Surety Bond Certificate (FH-1B), unless your vehicle is a bus or ambulance that does not transport passengers for a fee.
Taxi and livery classes do not need to present for-hire certificates at registration renewal since the registration expiration dates are staggered and the insurance policy does not need to expire when the registration expires. However, taxi and livery classes must still have a current For-Hire certificate in their vehicle.
Electronic Enforcement
The insured status of for-hire vehicles is monitored through the Insurance Information & Enforcement System’s (IIES) insurer electronic reporting program.
Insurance Lapses
Any lapse of insurance coverage results in a 30-day revocation of your vehicle registration and plates.
Lapses of insurance coverage on For-Hire class registrations are issued as revocations. You must surrender the vehicle registration and plates to DMV for 30 days. After you serve the revocation period, you can get a new set of vehicle plates and pay a new registration fee.