[aianus]

Given how I see taxi drivers drive, I presume the per-minute rate doesn't make up for the lost fares.

I can't say I know anything about taxi insurance, but surely an accident would be a huge hassle and make the driver look bad to his company or increase his premiums?

During the taxi shortage caused by Hurricane Sandy, Uber (admittedly not the most unbiased party) claimed that doubling fares tripled the number of their drivers on the road. I don't find this implausible.