Higher insurance rates raise taxi prices in Mount Pleasant
Higher insurance prices have forced taxi companies in Mount Pleasant to increase their prices by up to $1 per person.
According to 779-TAXI employee Nick Stauss, his company needed to increase their prices to keep their vehicles insured starting in August.
In addition to the dollar price increase for each rider, group discounts are no longer offered by the same company.
"We used to do deals for big groups," Stauss said. "But the state raised the insurance prices so much that we had to do a minimum charge for each rider."
Stauss said the state of Michigan nearly doubled the price of insurance on all of their cabs.
Chippewa Cabs Manager Brian Lumbard has come across the same problem and said the company also had to increase the coverage on all their cabs.
"We now have to carry a $2 million liability on all of our vehicles," Lumbard said.
Despite the increase in price, Lumbard said students are still getting a good deal because cabs are insured as limos and not taxis. If the cabs were insured as taxis, riders would pay a flat rate in addition to every mile driven.
Bay City junior Kylie Zaplitny was concerned about students choosing to drink and drive over taking a taxi and has witnessed situations where an extra dollar or two in fees changed rider's minds.
"It definitely makes people consider it more than they already do," Zaplitny said. "I mean, students are pretty cheap."
Both Stauss and Lumbard pushed back at the notion that higher prices lead to more drinking and driving.
"A lot more people cram into cars with a designated driver or resort to walking," Stauss said. "Four bucks a person is cheaper than paying for a DUI. I definitely wouldn't risk it."
Stauss said students had a big problem with the price increase during the first weeks of school. He said Welcome Weekend was slower than usual, but business has seemingly picked up now that students are adjusting to the price hike.
Although nearly every company in Mount Pleasant has had to increase their prices, some of them have been able to offer special deals. Chippewa Cabs has promotional tents and gives away wooden bucks for a dollar off each ride.
"We have a tent at every home game and give away $200 in free rides," Lumbard said.
