Running a limousine business can be a lucrative venture. However, it comes with a range of challenges that operators need to be prepared for - from lack of a proper reservation system to unexpected car problems and accidents.
A critical consideration for limousine operators is insurance. It serves as a form of protection for business in case of an accident, injury, or other unforeseen events.
Comparing quotes from different insurers is the best way to find the most affordable policy for your business. You could be held liable for thousands or even millions of dollars in damages without proper coverage and risk losing your business.
Running a limousine business is a huge investment, and as with any other business, you need to protect that investment with the proper insurance. > Taxi and limousine insurance protects you in case of bodily injury, property damage, and personal injury to you or third parties resulting from an accident involving your limousine.
It also protects against legal liability arising from your business operations, such as a customer getting injured while in your limousine. In some cases, commercial limousine insurance can even cover the cost of defending against lawsuits.
Commercial insurance for limo service is explicitly tailored to the different risks involved in operating a limousine business, which is why it's important to have one. Without it, you could be left footing the bill for damages and legal fees, which could quickly derail your business. There are several types of insurance for limo service, such as:
Bodily injury insurance
Property damage liability
Personal injury protection
Uninsured and underinsured motorists
Each type of insurance for limo companies covers different risks, so it's crucial to select the right policy for your business. The best policy provides the right level of coverage at a price you can afford. You can try to encompass different risks with a single policy or purchase multiple policies to create a comprehensive protection plan.
Bodily injury liability insurance is the most basic type of limousine commercial auto insurance, and provides coverage for damages and injuries caused by accidents involving your limousine. It can help pay for:
Medical bills and associated costs
Lost wages
Legal fees and other expenses related to a lawsuit
Pain and suffering
This type of limousine auto insurance is typically required by law in most states, so it's essential to have it to avoid any legal trouble.
Property damage liability provides coverage for damages to other people's property in an accident. This, by the way, is offered as a stand alone policy or included in either limousine service insurance or commercial auto insurance for limousines One thing to note is that it doesn't cover damage to your property - only damage to third-party property. This type of insurance can help pay for:
The cost of repairing or replacing damaged property
Removal of debris that occurs after an accident
The cost of renting a replacement vehicle while the damages are being repaired
Your limousine might get damaged, and nobody would hire a limousine that doesn’t look presentable. That’s why you should get an insurance policy that takes care of your limousine’s look.
Physical damage coverage takes care of the damages your limousine incurs. This has two forms - collision and comprehensive.
Comprehensive physical damage coverage will take care of your limousine’s parts repair or replacement if damage is caused by a collision with a vehicle or object. In practice, this insurance provides money you can use or reimburses what you spent. But note one thing though, comprehensive physical damage coverage won’t help if the limousine is damaged because you were driving under influence, overspeeding, or engaged in other criminal activities.
Collision isn’t the only thing that will deal damage to your limousine. That’s why it’s not smart to only get collision physical damage coverage. Comprehensive physical damage coverage is also useful. Particularly, it will pay for parts repair or replacement if your limousine is damaged by:
Vandalism
Theft
Fire
Hail
Wind
Storm
Lightning
Other covered perils
Think about a scenario where someone hires your limousine for a long trip out of town. You’ll surely have to shoulder out-of-pocket expenses if the limousine experiences issues during the trip.
Emergency roadside assistance coverage is a type of limousine insurance that will cover costs if the limousine acts up on the road, and you’ll need to pay for the following services to resume the trip:
Battery jump start
Towing
Tire delivery and replacement
Tire repair
Gas delivery
Not all business insurance companies offer emergency roadside assistance coverage for limousines. Your best bet of finding emergency roadside assistance is to look for a company that gives coverage to businesses that offer commercial transport services.
Personal injury protection, included in limo car insurance, covers medical expenses and lost wages for you and your passengers in the event of an accident, regardless of who is at fault. It can help pay for:
Medical expenses
Lost wages
Lump sum benefits
Funeral expenses
Repatriation expenses
If you live in a state that requires it, uninsured and underinsured motorists coverage included in limo driver insurance can help pay for damages caused by an accident involving a driver who doesn't have insurance or doesn't have enough insurance to cover the damages. This coverage covers:
Medical expenses
Loss of income
Pain and suffering
You only need the insurance policies we mentioned above if you’re making money as a limousine owner-operator. However, if you’re running a limousine rental business, you need to get other business insurance policies such as:
General liability insurance
Commercial property insurance
Business owner’s policy
Workers compensation insurance
Employer’s liability insurance
Employment practices liability insurance
Cyber liability insurance
Third-parties might experience an accident in the premises of your commercial space. It’s also possible for customers to rent a defective limousine from your business. General liability insurance sees to it that, in case your business faces a personal injury claim or property damage claim, losses won’t be incurred.
General liability insurance comes with optional policies that provide more protection for your limousine rental business. These are:
Advertising injury coverage
Rented premises liability coverage
Your limousine rental business might copy another business’s ad. It’s also possible for competitors to accuse you of slander or libel. A basic general liability doesn’t cover these things. That’s why you should add advertising injury coverage. With advertising injury coverage, your general liability insurance can cover the cost of copyright infringement, libel, and slander claims.
If you’re just renting a commercial space for your limousine rental business, then add rented premises liability coverage to general liability insurance. If something happens to the commercial space you’re renting, rented premises liability coverage will pay on your behalf if the landlord files a claim.
Running a limousine rental business means that you own a commercial space that serves as an office and the terminal where unused limousines are stored. We’re sure that you spent a lot of fortune on that commercial space. And to avoid incurring losses if something happens to it, purchase commercial property insurance.
Commercial property insurance will pay for the reconstruction of your limousine rental business’s commercial space in case a fire or extreme weather destroys it. Also, if the commercial space only got damaged, commercial property insurance will also take care of building repair costs. Note that commercial property insurance doesn’t only cover fire and extreme weather but also theft, vandalism, riots, and other covered perils.
Floods and earthquakes might destroy your limousine rental business’s building. Sadly, commercial property insurance excludes these perils on its terms. To cover floods, you need to get specialized flood insurance. To cover earthquakes, you need specialized earthquake insurance.
Don’t buy commercial property insurance and general liability insurance for your limousine rental business separately. The most effective way of getting your business protected from liabilities and destruction or damage to business property is through a business owner’s policy.
A business owner’s policy combines general liability insurance and commercial property insurance under one roof. Its cost is significantly cheaper than buying general liability and commercial property insurance separately. A business owner’s policy also features one additional insurance policy for more protection. This additional policy is either workers compensation insurance or commercial auto insurance.
Your limousine rental business has employees for sure such as mechanics, drivers, sales personnel, and more. The law mandates you cover employees with workers compensation insurance.
What is workers compensation insurance anyway?
Your employees might suffer from a work-related injury or disease. The job of workers compensation insurance is to take care of the cost of treatment, rehabilitation, and lost income compensation.
Not getting workers comp insurance is punishable. This is why authorities recommend all types of businesses having employees to get the coverage. But still, insurance companies don’t provide coverage to high risk businesses. What if this happens to your limousine business? What should you do?
If you can’t get workers compensation insurance from commercial insurers, then ask authorities to include your business in a state insurance fund. If this isn’t an option, ask the workers comp department of the location where your limousine business is located if self insurance is possible.
If your limousine rental business is found in Texas, then there’s no need for you to get workers compensation insurance. In Texas, businesses are free to decide whether to get workers compensation insurance or not.
After experiencing a work-related injury or illness, an employee might accuse you of being negligent in providing safe work conditions. And you can’t expect general liability insurance to provide a helping hand as it doesn’t cover employee personal injury claims.
Insurance companies recognize this issue and offer employer’s liability insurance. Employer’s liability insurance covers costs if an employee files a claim because you caused or allegedly caused workplace injuries or illnesses by being negligent.
Employer’s liability insurance is offered as a stand-alone policy or as an inclusion in workers compensation insurance. Depending on what jurisdiction your business is located in, then there’s no need to get employer’s liability insurance if you have workers compensation insurance. It’s because some states in the US have workers comp laws that prohibits employees from suing employers who have workers comp coverage.
Other reasons for an employee to file a claim against your limousine rental business are sexual harassment, workplace discrimintation, and wrongful termination. Employer’s liability insurance doesn’t cover these things. Instead, what provides protection is employment practices liability insurance.
Get cyber liability insurance if your limousine business runs a website or any other platform that collects sensitive information upon the user’s consent. The job of cyber liability insurance is to cover defense costs and settlements if cybercriminals gain access to sensitive information and affected users decide to hold your business liable. Aside from this, cyber liability insurance will also cover expenses for public relations and customer notification.
In case you want to get covered against the cost of containing and reversing the damages of the breach, consider getting cyber insurance. Cyber insurance is a comprehensive insurance plan that protects you from the risks of running websites or any other similar platform. We forgot to mention this but know that cyber liability insurance can be a stand-alone policy or inclusion in cyber insurance.
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Most pay $200 a month or $2,400 a year for limo insurance having $1 million general liability coverage. The cost of limo insurance varies depending on several factors, including the size and value of your limousine, your location, driver history, and your coverage needs. While every premium is based on the insurance provider, the best insurer is one that will tailor the policy to your specific needs and budget. Here is a comprehensive overview of limousine insurance cost:
Average cost per Month | Average cost per Year | |
---|---|---|
Bodily Injury Liability | $291.66 | $3,500 |
Property damage liability insurance | $125 | $1,500 |
Personal injury protection | $166.66 | $2,000 |
Uninsured/underinsured | $141.66 | $1,700 |
Physical damage | $125 | $1,500 |
For further reference, here’s a table showing the pricing of the best limo insurance providers:
| Average Cost per Month | Average Cost per Year | Best for |
---|---|---|---|
CoverWallet | $119 | $1,428 | Limo businesses looking for a hassle-free online experience with competitive rates from multiple providers |
Hiscox | $195 | $2,340 | Limo insurance with generous policy limits |
Geico | $210 | $2,520 | Limo businesses after limousine insurance carriers offering discounts |
Progressive | $250 | $3,000 | Limousine businesses after competitive pricing for high risks and has no to little insurance claims history |
Limo insurance is an investment in the safety of your business. By law, you may be required to carry certain types of insurance, and failure to do so could result in stiff penalties. In the event of an accident, the right insurance can help protect you from costly legal fees and damages.
So how do you spend the same money on limo insurance premiums? The most effective way is to have a high deductible. A deductible is an amount you’ll return to the insurance company once your claim is approved. Having a high deductible will cut your premiums by 15% - 20%.
Also, don’t forget discounts. Limo insurance companies have a plethora of discounts for customers. These are new customer discounts, commercial driving license discounts, cleaning driving record discounts, low mileage discounts, and more.
Most limousine insurance companies will offer the same types of coverage, but few might provide additional perks, which is why it's crucial to compare rates from several providers before making your decision. Some of the best limousine insurance companies are:
Knowledgeable and helpful customer service
A wide range of policy options from multiple providers
Easy to use online platform that allows you to compare taxi limousine insurance quotes online
Not an actual provider, so a third party will provide your limousine car insurance
CoverWallet provides a simple and easy-to-use online platform for searching affordable insurance from multiple partner providers. With this company, you’ll enjoy online policy management and an online certificate of insurance.
Furthermore, you don’t need to stress about things if issues arise because CoverWallet has a live chat platform where you can easily seek the help of insurance agents.
You’ll find this company very rewarding if you’re running a limo rental business. CoverWallet has four tailored insurance options made by customizing the offers of its partners - general liability, general liability and commercial auto, general liability with commercial auto and inland marine insurance, and a custom plan.
Best for: Limo businesses looking for a hassle-free online experience with competitive rates from multiple providers
Average cost: $119 per month
Our rating: 10/10
Generous policy limits
Trusted company and is positively rated by industry watchdogs
Doesn’t offer limo insurance online quotes
Hiscox provides coverage for a variety of businesses. Through this company, you’ll enjoy insurance policies with $1 million to $5 million limits.
Best for: Limo insurance with generous policy limits
Average cost: $195 per month
Our rating: 9/10
GEICO has provided quality insurance products since 1936 and has consistently received praise for their excellent customer satisfaction and quality coverage options. With GEICO limo insurance, you can customize your coverage to fit your specific needs and budget.
Best for: Limo businesses after limousine insurance carriers offering discounts
Average cost: $210 per month
Our rating: 8/10
Customizable coverage and industry-specific options
Affordable rates
Competitive rates for drivers with DUI record
Customer complaints about the complexity of their claims process
Below average customer satisfaction rating
Progressive is one of the largest auto insurance companies in the United States and offers a wide range of commercial insurance products, including limo insurance. Progressive limousine insurance is popular as it can be added with optional policies for the best protection.
Best for: Limousine businesses after competitive pricing for high risks and has no to little insurance claims history
Average cost: $250 per month
Our rating: 6/10
The best way to find cheap limousine insurance is to do your research. Unfortunately, with extensive information available on the internet, the process can be overwhelming.
Click the “Get Quotes” button to use our free quote generator to compare rates, coverage, and customer service ratings from the leading providers to make an informed decision on the best policy for your limousine business.
Get all the best quotes from leading providers in a click of a button!
Kasey Arey Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
This company gives you a price that was in place for a year and when you have to use it there is fine print were they can go back and charge you more. Would not recommend them to any one. Crooks
Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Had general liability and workers comp with amguard. Paid high premiums and yet still got audited every year and had to pay more. Was able to prove less risk the first two audits and disputed price down but none the less had to pay more just so I could renew coverage. Third time the audit ( based on what I paid my premium on ) was ridiculous and tried to prove that there was no increase in risk from what I paid for my premium. However they would not believe it and required I paid full audit amount in order to have redline removed. Basically you do what they say and pay whatever outlandish bill they come up with or they will make sure you can’t run your business anymore. ????
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Avoid these SCAM ARTISTS! They don’t pay claims!!! Save yourself the trouble and money!
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
They are the worst, my truck was hit in January 23 and the claim adjuster has not been out to this very day! They have every excuse in the book as to why. They have not been to the collision shop. PLEASE AVOID THESE SCAM ARTIST!
Dave Phillips Insuranker
Policy Type: Business Insurance
Company name: CoverWallet Business Insurance
Excellent platform for business insurance quote comparison online