Limo Insurance

Limousine businesses provide a very valuable service. Thousands of people in the United States rely on them to get to and from places daily. Whether it’s dropping customers off at any airport in the USA or getting excited teens to prom, limo services handle a lot.

With all this, driving comes with a variety of risks. To protect them, you need limo insurance. Limo insurance provides coverage for you, your drivers, and the clients you transport. Insurance also helps with damage to your fleet of vehicles.

What is Limousine Insurance?

Limousine insurance is a for-hire livery insurance that provides specific coverage for limo services.

It helps cover the business, drivers, vehicles, and passengers in the event of an accident. It can help protect a variety of cars that are used daily as limousine services.

If you offer transportation on a for-hire basis, you may need limo insurance. Getting this type of insurance before hitting the road is highly recommended.

Types of Vehicles Covered by Limo Insurance

You probably always picture a stretch limousine when you think of a limousine.

However, limousine companies use various limos to transport people, all of which can be covered by limousine insurance.

Some common types of vehicles limousine companies use include:

• Classic cars
• Luxury sedans
• Stretch limos
• Limo busses
• Stretch SUVs

Do You Need Limousine Coverage?

Yes. If you operate a limo business, you must insure all your limousines. Not only will it offer you valuable coverage after an accident, but carrying insurance is also the law.

Every vehicle on the road needs some level of auto insurance. Limo companies also have their state insurance requirements they must meet. It does not matter whether you operate your business alone with one vehicle or have hired drivers with a whole fleet of vans.

You must have the proper commercial auto insurance if you are running a limousine service. It will help protect you, your drivers, and your customers in the event of a collision.

Without it, you will be expected to pay for an accident out of pocket, not to mention all the legal penalties for driving without insurance. Spending much money like that can harm you and your company.

What Does Limousine Insurance Cover?

Coverage provided by limo insurance is similar to that of personal auto insurance. The two types of insurance diverge when it comes to coverage limits.

Generally, any commercial insurance policy will offer higher coverage limits to provide businesses with more protection, which companies need.

Limo insurance provides the following auto coverage:

General Liability

General liability insurance coverage protects the policyholder if you cause property damage and bodily injuries in an accident. It can also help with legal fees should the other party sue you.

Collision

Collision insurance pays for damage to your vehicle following an accident, no matter who was at fault.

Comprehensive

Comprehensive insurance pays for damage to your vehicle after a non-collision-related incident. Examples include damage from extreme weather, theft, or vandalism.

Personal Injury Protection (PIP)

Personal injury protection (PIP) pays for any medical expenses you and your driver accumulate following an accident. It provides bodily injury coverage no matter who was at fault.

Uninsured and Underinsured Motorist Coverage

Uninsured-underinsured motorist coverage will help pay for your property damage and bodily injuries if you are in an accident with someone who lacks the proper liability insurance.

How is Limo Coverage Different From Other Types of Insurance?

Limo insurance is a type of commercial auto insurance that specifically provides coverage for vehicles that operate as private or pre-booked passenger transportation. Limo services work as a business, so they need commercial vehicle coverage that treats it as such.

This means commercial vehicle insurance must protect not only your vehicles and drivers but also your customers. Anyone in the car should be covered in the event of a liability claim following an accident.

While, on a surface level, limo insurance looks to be the same as any other personal or commercial auto insurance policy, it does differentiate regarding what coverage is offered and their corresponding limits.

How much does Limo Insurance Cost?

There’s no reason to beat around the bush: limousine coverage prices can be high. Most limousine insurance policies, on average, cost around $5,000 to $10,000 per year. That can be anywhere from $416 to $833 monthly for coverage. This is certainly higher than if you were to get a personal auto insurance quote.

Limo and black car company owners can be subjected to higher insurance premiums simply because their vehicles spend much time on the road. It is their job to drive, and when that is your source of income, you will pay for it in the form of auto insurance premiums. But there are other reasons limousine insurance can get pricey.

Insurance providers look at various factors regarding you and your business when establishing rates. Some common determining factors of your insurance premiums include:

• Location - What markets your limousine business operates will significantly affect your insurance rates. Some states see higher auto insurance premiums than others. A community with higher crime rates and dense populations has a greater insurability risk.
• Driving record - The driving records of both you and your drivers will be considered. If neither of you has had an accident, your insurance rates will be significantly lower.
• Type of business - Limo companies can specialize in certain areas of transit. For example, your limo company specializes in taking teens to and from prom. Or you could focus on servicing weddings. What kind of business you run will impact your insurance rates. However, it is hard to determine which service is considered more of an insurability risk by insurance companies.
• Business experience - How long your company has been in business will affect your insurance rates. If you are new to the industry, expect to pay more for insurance.
• Type of vehicles - As previously mentioned, there are a couple of different types of vehicles limo companies use for their business. Whatever kind you regularly use will be considered by your insurer. Some cars are more expensive to insure than others.
• Coverage limits - The type of insurance policy you purchase will impact your rates. The more insurance coverage you want, the more you will be paying. How high or low you set your deductible will also affect your premiums. The lower your insurance deductible, the more you will pay annually.

Get Cheap Insurance For Your Limousine

Since limousine insurance can get a bit pricey, you can use a few tips and tricks to lower your premiums. Some of the ways listed can result in instant discounts. In contrast, others are preventative measures to stop your premiums from increasing.

Don’t let the insurance price discourage you from getting the protection you need. That is irresponsible and leaves your business vulnerable. Instead, take the steps below so you can get a more affordable insurance premium:

Hire safe drivers

It would be wise to find employees that have good driving records. The better the record, the lower you will be paying for insurance. There is also an air of trust that comes with a driver with a good driving history and knowledge of how to drive the streets safely.

Provide drivers with a safe driving course

Even after hiring a driver with a clean driving history, it can be worth reminding them repeatedly about how to practice safe driving. People tend to get careless and less attentive the more comfortable they get doing something routine like driving. Ensure you send only intelligent, safe drivers out onto the road. You want responsible people representing your company. This will help keep your insurance rates low.

Adjust your deductible

The higher you set your insurance deductible, the less you will pay annually. But this, in turn, means you promise to pay more out of pocket in case of a claim. Adjusting your deductible may be worth it if you can afford to do that. Just make sure you are not doing it solely for the discount. You need to be able to pay the insurance deductible following an accident.

Bundling coverage

As a business, you will need a few different types of insurance. When this is the case, it is recommended that you bundle your coverage. Bundling means you purchase multiple insurance policies under the same company. As a thank you for getting different coverages with one insurance company, they will sometimes reward you with a discount on your premiums.

Pay premium upfront

If you can afford to, pay all your insurance premiums or part (at least 20%) upfront. Insurance companies will offer a discount for doing so, which will be worth the investment.

Other Insurance Limousine Businesses Need

limousine insurance is undoubtedly one of many types you need to operate a transportation business. Companies in the transportation industry need to purchase several insurance policies to be prepared for anything.

Some other types of insurance coverage options you should be looking into as a limousine service owner include:

Workers Compensation

Every business, following state laws and regulations, must carry some level of workers compensation insurance. Workers compensation helps pay for medical expenses if your employee gets hurt while on the job.

Workers Compensation will also give them a reduced salary while recovering. If you send people out on the road daily, they are at risk and need coverage.

Commercial Property Coverage

This is especially important for limousine companies operating out of a garage with an established office. Commercial property insurance will cover this location in the event of a disaster.

Business Interruption Insurance

Suppose something happens to you or your property, and you must shut your doors for some time. In that case, business interruption insurance will help cover expenses. This can include missed income and wages for your driver(s).

Employment Liability

If you are hiring drivers, you must ensure you are protected in case they claim mistreatment in the workplace. This includes accusations of discrimination or wrongful termination in your organization. Employment liability insurance will help pay for legal fees.

Limo Insurance Quotes from Insurance Navy

Are you looking for a limousine insurance policy? Contact one of our expert insurance agents today to get a free limo insurance quote. Make sure you let our team know your zip code, details of your business, and information on your vehicles. By providing us with all this, our team can better understand the coverage you need. Our knowledgeable customer care representatives are available 24/7 to answer any of your frequently asked questions or FAQs.

Quotes are available either at one of our many locations or online in just a few clicks via our website and mobile app. You can also get a quote over the phone. Get your coverage today and drive worry-free tomorrow.

*This product may only be available in some states; please call an agent for more information.