Avlac Car Insurance

The Basics of Limousine Insurance

Obtaining limousine insurance is much different than finding regular car insurance. In fact, not only do different criteria exist, but there are not many companies who will insure limousines. For the most part, individuals searching for limo insurance fall into two basic categories. The first category includes persons who own limos as part of their personal possessions. The other category usually involves some sort of business, whether it be a single car endeavor or a fleet containing hundreds of limos. The major difference between the two categories is the purpose for which an individual owns a limo. One function is considered public transportation and the other, of course, is referred to as personal use.

Businesses who require limousine insurance usually approach a Passenger Transportation Insurer or Livery Insurance Broker. This type of insurer assumes considerably more risk than regular vehicle insurance companies. In both instances, the driver or drivers of the limos will directly impact the insurance. Clean driving records are a must, consequently limo owners and owners of limousine-for-hire companies must scrutinize driver employment applications very closely.

Another area in which insurance companies examine is whether or not the drivers have proper licenses to transport the public. Likewise, the driving history of the business itself will also be relevant. If the limo company owner has made several claims in the past, those claims will impact negatively on the insurance premium.

For businesses seeking limousine insurance, they will be looking for coverage such as:

• Commercial vehicle coverage, as the limo company is transporting the general public.
• Liability in the case a client receives an injury due to the limo or the driver, insurance will properly compensate the customer. Most states have regulations regarding the minimum liability that a limo owner must carry.
• Vehicular accidents are covered.
• Stipulations for property theft or damage. The client may be carrying expensive equipment and the limo is robbed while he or she is away at an appointment.
• Because a limousine business requires its limos to be in service, if something happens, lost profits occur. Therefore, insurance benefits may include business interruption.
• The equipment in the limo owned by the driver and the company can be very expensive should vandalism or theft occur.

Interesting Points about Limo Insurance Programs:

• Some insurers will not cover limo companies who have a high percentage of their business as airport fares.
• Certain features of the limo may not be covered. Examples of policy exclusions are hot tubs and fireplaces.
• Some insurers will not consider limos that are older than three years.
• Some limo owners are paying as much as eleven and fifteen thousand dollars per year to insure one vehicle.
• Some insurers will only consider an application if a minimum number of limos are involved.
• Some companies don't insurance for certain risky locations. Some Las Vegas Limo companies have complained about simply not being able to get insurance at affordable rates at all!
• Premiums depend on several factors including age of vehicle, age of drivers, driving record of drivers, history of business as it relates to claims and clean driving records, where the vehicle is stored, seating capacity, type of equipment on-board, in-limo features, and where the limo will be traveling.