Limousine insurance protects your business from risks that come with being a driver, such as injury to your passengers. State laws mandate livery drivers carry a minimum amount of liability insurance, but drivers can add optional coverage to further protect their businesses. Costs depend on what coverage you get, with annual premiums ranging between $5,000 and $10,000.
Limo drivers can find affordable coverage through Progressive Commercial, a large insurance company that specializes in commercial auto policies. They offer small business owners fast online quoting options and quick response for claim service for black car and limousine insurance.
Top Limousine Insurance Companies
Black car and limo drivers who want to save money on their insurance
Luxury rideshare drivers who want one policy for their personal and commercial risks
Limo business owners looking to control costs through good safety practices
Business owners who want to compare rates on limousine insurance and other commercial policies
Coverage for limos can be costly, so you want to look for limousine insurance companies that offer competitive pricing and quality coverage selections. This will probably take a little research on your part because only a few of the well-known carriers offer coverage for livery operations.
Progressive Commercial is a leading commercial auto insurer that can provide fast online quotes for limousine insurance, and it’s the ideal provider for business owners looking to save money on their coverage. The company offers a number of discounts, including ones for paying upfront, bundling your limo insurance with other business policies, and maintaining continuous coverage.
Luxury ride-share drivers should look to GEICO for their insurance. The company developed commercial auto coverage specifically for on-demand drivers that simplifies the blurry line between personal and business driving. Ride-share drivers get the benefit of a single policy for all of their risks while still being able to drive for multiple companies. GEICO also makes it easy to apply, buy, and manage policies online.
Lancer Insurance may not be as well-known as the first two insurers on our list, but this small company writes commercial auto insurance in all 50 states and has excellent financial ratings. Limousine company owners who are concerned about safety should work with Lancer. The company offers a number of safety resources, including training videos and complimentary onsite safety visits, to help company owners minimize claims and keep rates low.
As a private agency, Bankers Insurance has a lot of flexibility when it comes to which carriers it works with. Its agents have access to multiple limousine insurance companies, plus the agency has developed insurance programs that combine limo coverage with other key business policies. This gives limousine companies the chance to compare premiums and policy terms for all of their coverage needs.
How Limousine Insurance Works
Limousine insurance is a special type of commercial auto coverage designed to protect livery businesses. Because limo drivers transport passengers, they face a greater risk of being sued if something goes wrong—which is also more likely because of the amount of time they spend on the road.
To protect against this and other risks, limo drivers typically need the following coverages:
- Commercial auto liability: Also called primary liability, this coverage is required in most states to pay for damage or injury you cause other people while driving your limo.
- Physical damage: Physical damage coverage pays for repairs to your vehicle after a collision, fire, theft, or vandalism; this is not usually required by law.
- Personal injury protection (PIP): This first-party coverage pays medical bills, funeral costs, and lost wages if you or your passengers are injured in an accident.
- Medical payments: Also known as medpay, medical payments coverage pays for injury-related expenses for you, your insured driver, and your passengers after an accident; the coverage is similar to but less broad than PIP.
- Uninsured and underinsured motorist (UM/UIM): Some states require UM/UIM for black car and limo businesses to pay for injuries and damages after an accident with a motorist with inadequate coverage.
Besides limo insurance, individuals who run limousine companies face other risks that may require additional business insurance policies, such as workers’ compensation, general liability, and commercial property.
Who Limousine Insurance Is Right For
Limousine insurance covers small businesses that provide pre-arranged passenger transport with specific drop-off and pick-up locations. Typically, they use luxury SUVs, sedans, or custom-built stretch limos that can be 40 feet long and seat 18 people. The length and number of people are two major reasons limo drivers need unique insurance.
Business owners are usually responsible for providing limousine insurance for their drivers. That said, a solo driver with no employees and a single vehicle is a business owner and must get the minimum required liability coverage in his state. In either case, the state minimum may be insufficient for your specific needs. Increasing limits or adding optional coverage can better protect your business—especially if you haven’t established a business entity. As a sole proprietor, you can be held personally liable for your business’ debts, which means one bad accident could drain your personal bank account.
Limousine Insurance Policies & Costs
Because insurers see a difference between commercial vs. personal auto insurance, a limousine policy costs more than coverage for your personal vehicles. That cost increases depending on how much coverage you need. A limo that seats eight costs less to insure than one that seats 18. Similarly, a company with a fleet of limos pays more than a solo driver with one limousine.
The limousine company most likely also needs to add other business policies, such as:
- General liability insurance: This is a fundamental business policy that covers claims that your business is responsible for a third party’s property damage or bodily injury.
- Workers’ compensation insurance: Most states require business owners to carry workers’ comp to pay injured employees’ medical bills and lost wages.
Limousine Insurance Costs by Coverage Type
Commercial Auto Liability
$3,000 - $7,500
$500 - $3,500
$800 - $2,500
$2,500 - $6,000
While how much coverage you need has a major influence on your premium, so do limousine insurance companies’ guidelines. Each carrier uses unique guidelines to determine limo insurance rates, but those guidelines often consider similar factors, including:
- Location: Limousines driven in urban areas often cost more to insure than their rural or suburban counterparts.
- Vehicle size: Driving a larger vehicle increases the likelihood of an accident, so insurers usually charge more to cover them; some states also base their liability insurance requirements on seating capacity.
- Vehicle value: The more valuable your limo is, the more expensive it may be to replace or repair, so the cost of insuring it increases.
- Driver history: Insurers see a driver with a clean driving history as a better risk, so they charge lower premiums.
- Services: Drivers who mainly focus on weddings and airport runs are often less expensive to insure than those who drive stretch limos or party buses.
Limousine insurance companies can weigh each of these factors differently, so it’s a good idea to shop around for coverage.
Limousine Insurance Tips
Selecting the appropriate coverage for your limo business can be tricky. While you don’t want to spend an arm and a leg on limousine insurance, you also can’t afford to be underinsured. Below are a few tips to help you navigate the process.
Discuss All of Your Operations With Your Agent
You want to be upfront about every aspect of your business operations because any additional service can impact your insurance needs. Two common examples are liquor packages and interstate travel.
“Be clear with your agent about any states you might cross into and be sure she knows the liquor laws for those states. If your company charges for liquor to be included in the limousine, that can alter your liability. The most important thing is to be sure you have an agent who is knowledgeable in liquor liability and be open and honest with that person about your operations.”
— Elena Thormahlen-Conforti, Vice President Business Development, Meridian Insurance Services
Save Money With Discounts
While coverage can be very expensive, many limousine insurance companies offer discounts to help business owners save on premiums. Typically, these discounts reward behaviors that benefit the insurance providers, such as safe driving, upfront payments, and bundling coverage. Some may even offer discounts if you and your drivers take a safe driving course.
Research Your Insurance Company
Many of the better-known insurance companies don’t offer limo insurance. This isn’t necessarily a bad thing, but it does mean you want to check out your limousine insurance company before you buy coverage. You can start by asking your colleagues what insurer they use and if they’re happy with its service, but you should also look into an insurer’s A.M. Best rating to see how financially stable it is.
Limousine Insurance Frequently Asked Questions (FAQs)
Business owners often have a lot of questions when they’re purchasing limousine insurance. To help you find the right coverage for your limousine business, we’ve answered a few of the most common questions below.
How much does it cost to insure a limo?
Limousine insurance companies consider a number of factors when determining how much your coverage costs, including your location, driving record, and services. Premiums for most limousine insurance policies are between $5,000 and $10,000 per year.
What is chauffeur insurance?
Chauffeur insurance is just another name for limousine insurance. Chauffeurs need to cover their vehicles and liability risks in order to protect their businesses, such as commercial auto liability, personal injury protection, and physical damages coverage. Most states have a minimum liability insurance requirement.
What is livery insurance?
Livery insurance is commercial auto coverage for any business where the primary operation is transporting people. Limo and taxi insurance are common types of livery coverage, but non-emergency medical transport and airport or hotel shuttles may need livery insurance too.
Limousine insurance helps protect your limo business from the risks inherent in its operations. It covers you and your drivers, your vehicles, and your passengers in case an accident causes property damage or bodily harm. An independent agent or broker can help provide the best pricing and coverage options for your limousine business.
Be sure to visit Progressive Commercial to get a quote on limousine insurance. The company is a leading commercial auto insurance provider, so you can trust it has quality coverage and pays its claims. Moreover, Progressive Commercial offers a range of discounts to help make coverage more affordable.