One of the reasons for insurance is that most people do not have the funds to immediately take care of the costs that accidents cause. If someone crashes into

One of the reasons for insurance is that most people do not have the funds to immediately take care of the costs that accidents cause. If someone crashes into your car, you usually call your own insurance and they pay for your expenses so you can carry on with life. Then they get the money from whoever was responsible. Usually some combination of the other party and their insurance. With taxis, it works similarly. The operator is supposed to be insured and their insurance will float the cash.