Limo companies, much like any other company that owns and operates vehicles used for routine business operations, can benefit from protecting their cars against accidents and other similar events. Limo insurance serves as an effective form of protection in many cases. However, costs and options for coverage vary depending on several factors. Here is a close look at this subject.
What Is Limo Insurance?
Limo insurance is a type of livery (special design) coverage that shields drivers who transport individuals on a for-hire basis. Limo companies typically provide pre-scheduled rides (to airports, weddings, funerals, and other special events) and have specific drop-off and pick-up locations for their passengers. There are several different types of coverage included in limo insurance plans, including personal injury insurance, bodily injury insurance, property damage liability, and uninsured (and underinsured) motorist coverage. Before selecting an insurance plan, however, it’s important to evaluate your business’s specific needs. According to Limousine Insurance HQ, most limo insurance policies cost between $5,000 and $10,000 per car each year, on average.
What Affects The Cost?
The four primary factors that affect the cost of limo insurance are a company’s location, driver history, the size and value of its vehicles, and its coverage needs. Let’s analyze each of these factors closely.
Location Of Company
A limo company’s location is one of the most notable factors that influence how much it pays in insurance. If a limo service is based in the heart of a large city, for example, insurance will likely cost more due to the fact that there is a higher probability of accidents, especially in areas with heavy traffic. Meanwhile, a limo business located in an area that is relatively less busy (e.g. a small suburban town) will likely enjoy lower insurance costs.
The cost of commercial auto insurance may also vary by state, as certain states have specific, additional requirements and/or restrictions regarding coverage. You can verify this information with your local DMV.
Driver History
In addition to your company’s location, the history of your drivers’ rides also typically impacts the cost of limo insurance. If one or more of your drivers has ever been involved in an accident (for any reason), an insurance company is likely to consider you a more high-risk customer compared to a business with drivers who have never had an accident. This is especially true if an accident resulted in injuries to passengers or any type of property damage.
Vehicle Size & Value
The higher a vehicle’s value, the more it generally costs to protect and repair it. This is especially true of luxury vehicles such as limousines. The same logic often applies to a vehicle’s size. The longer your limos are, the more space they will take up on the roads and consequently, the greater the risk of a collision will be. Older limousine models with more dust, dents and scratches will likely have a lower value than clean, newly manufactured cars that have relatively less damage on their frame.
Specific Coverage Needs
The final major factor that impacts limo insurance costs is a company’s unique coverage needs. A business will often base its coverage needs on all of the above factors. Conducting a risk assessment may also be helpful to determine insurance needs. Remember to keep in mind that higher limits and lower deductibles offer you and your clients greater tranquility, although they will also raise your overall premium.
Contact The Limo Insurance Professionals
Speak to the professionals at John M Glover for more information on the average cost of limo insurance and what affects this cost. Although we are based in Norwalk, Connecticut, we also serve clients located throughout New York, New Jersey, Massachusetts, and Hawaii. Since our founding in 1916, we have been dedicated to providing our clients with top-quality insurance solutions that meet their unique coverage needs.
JMG Insurance Agency is an independent organization that works closely with several insurers that have a proven record of stability and reliability. In order to apply for limo insurance, you will need to provide certain documents and information, including your vehicles’ make and models, length, age, and overall condition. The policies we offer are designed to protect your drivers, riders, and vehicles. Certain additional requirements may also apply depending on the state in which your limo business operates, and deductibles may vary. The specific areas of coverage our policies provide include personal injury insurance, bodily injury, property damage, and uninsured and underinsured motorist coverage. Call John M Glover today at 1-844-304-7332 or contact us online to schedule a consultation with one of our agents or to learn more about our insurance offerings.