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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. In order to protect them, you need limo insurance. Limo insurance provides coverage for you and your drivers along with the clients you transport. Insurance also helps with damage to your fleet of vehicles.

What is Limousine Insurance?

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

It helps cover the business, drivers, vehicle(s), and clients in the event of an accident. It can help protect a variety of vehicles that are used daily as limousine services.

If you are offering transportation on a for-hire basis, chances are you need limo insurance. It is highly recommended you get this type of insurance prior to hitting the road.

Types of Vehicles Covered by Limo Insurance

When you think of a limousine, you are probably always picturing a stretch limousine.

However, limousine companies use a variety of different types of limos in order to transport people, all of which can be covered by limo 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 need to 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 own 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.

If you are running a limousine service, you need to have the proper auto insurance. It will help to keep you, your drivers, and your customers protected 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 that come from foregoing insurance. Spending a large amount of money like that can be detrimental to you and your company.

What Does Limousine Insurance Cover?

Coverage provided by limo insurance is not too unlike what you would find with personal auto insurance. Where the two types of insurance diverge is 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 in the event that you cause property damage and bodily injuries in an accident. It can also help with legal fees should the other party sue you.


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


Comprehensive insurance pays for damage to your vehicle after a non-collision-related incident. Some examples of this include damage from extreme weather or vandalism.

Personal Injury Protection (PIP)

Personal injury protection (PIP) pays for any medical expenses you and/or 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 transportation. Because limo services operate as a business, it needs 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 when it comes to what coverage is offered and their corresponding limits.

Limo Insurance Cost

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

Limo company owners can be subjected to higher insurance premiums simply because their vehicles spend a lot of time on the road. Quite literally, it is their job to be driving, and when that is your source of income, you will be paying for it in the form of auto insurance premiums. But that is not the only reason limo insurance can get pricey.

Insurance providers look at a variety of 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 greatly affect your insurance rates. Some states see higher auto insurance premiums than others. A community with higher crime rates and dense populations have a greater insurability risk.
  • Driving record - The driving records of both you and your drivers will be taken into consideration. If neither of you has gotten into an accident before, your insurance rates will be significantly lower.
  • Type of business - Limo companies can specialize in certain areas of transit. For example, maybe your limo company specializes in taking teens to and from prom. Or perhaps you focus on servicing weddings. What kind of business you run will impact your insurance rates, but it is hard to really determine which service is considered to be 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 is, the more you will be paying annually.

Get Cheap Insurance For Your Limousine

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

Don’t let the price of insurance discourage you from getting the protection you need. That is irresponsible and leaves your business vulnerable. Rather, 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 who has a good driving history and the knowledge of how to drive the streets safely.

Provide drivers with a safety driving course

Even after you hire a driver with a clean driving history, it can be worth it to remind them time and time again about how to practice safe driving. People tend to get careless and less attentive the more comfortable they get doing something routine like driving. Make sure you are sending only smart, 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 be paying annually. But this, in turn, means you are promising to pay more out of pocket in the event of a claim. If you can afford to do that, adjusting your deductible may be worth it. 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 are going to need a few different types of insurance. When this is the case, it is recommended that you bundle your coverage. Bundling simply 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 insurance premiums.

Pay premium upfront

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

Other Insurance Limousine Business Needs

Limo insurance is certainly not the only type of insurance you need if you are operating a transportation business. Companies in the transportation industry need to purchase a number of insurance policies in order 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, in accordance with 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 provide them with a reduced salary while they are recovering. If you are sending people out on the road every day, they are at risk and need coverage.

Commercial Property Coverage

This is especially important for limousine companies that operate out of a garage and/or have an established office. Commercial property insurance will cover this location in the event of a disaster.

Business Interruption Insurance

If something happens to either you or your property and you need to shut your doors for a period of time, 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 need to make sure you are protected in case any of them 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

Looking for a limo insurance policy? Contact one of our expert insurance agents today to get a free limo insurance quote. Make sure you let us know your zip code, details of your business, and information on your vehicles. By providing us with all this, we can get a better idea of 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 not be available in every state, please call an agent for more information.