11 Steps to Insuring Your Limousine YesEnsure

11 Steps to Insuring Your Limousine

I’m sure you’ve thought about it, dreamed about it…maybe even wished for it. However, do you know what goes into insuring a limousine? Do you know how to protect your investment? Luckily there are steps that can maximize your investment and minimize the risk of financial loss.

I called around to some insurance agencies who insure limousines and asked some questions. What I found out is that there are a lot of things that need to be considered when insuring a limo, for example:

1) The driver’s driving record

2) The age of the vehicle (do you want full coverage or only liability insurance?)

3) Parts and/or service coverage

4) Coverage for when the vehicle is being towed, not driven (because there are only a few insurance companies who offer this coverage, I was told to check with my local towing company.)

5) Your own deductible amount.     

If you have two or more vehicles that you use in your business, call around and compare the rates of the different companies because you might find that one company offers a lower rate for multiples.

Now let’s get down to business…

1) Liability Insurance

This is extremely important in today’s world, regardless of whether or not your state requires it by law.  If you are ever sued, your liability insurance should help cover the damages.

2) Personal Injury Protection (PIP)

This coverage is required in some states, but not all. If it is a requirement where you live, you will need to have this. This covers the passengers’ injuries no matter who’s at fault for an accident.

3) Medical Payments Coverage

No matter what state you are in, this coverage is not required by law. This coverage will pay medical expenses for your passengers in the event of an accident.

4) Collision Coverage

There are two types of collision coverage to be aware of: actual cash value and stated limit. Actual cash value is what you would get if you totaled your car, while stated limit is the maximum payout for your car.

5) Comprehensive Coverage

This coverage will protect you from damages to your vehicle that are not caused by an accident, such as hail damage or fire. This is another one of those coverage types where actual cash value and stated limit come into play.

6) Towing And Labor Coverage

If your vehicle breaks down or is in an accident and you need it towed, this coverage pays for the tow truck’s services. This coverage also pays for repair to your car if there are replacement parts needed during the repairs.

7) Personal Effects Coverage

This coverage will pay to replace your personal items that are lost or stolen while traveling in your limousine.

8) Rental Reimbursement Coverage

If you need to rent a car while your limo is in the shop, this coverage will help pay for it. This coverage also applies to any costs incurred while renting equipment to use in the event of an accident (i.e., jaws of life).

9) Uninsured Motorist Coverage

This coverage protects you from those who do not have insurance and cause an accident.  

10) Under-Insured Motorist Coverage

This goes hand in hand with the previous coverage. This coverage protects from those who do not have enough insurance to cover damages caused in an accident.

11) Miscellaneous Coverage

This coverage covers the things that do not fit in with any of the previous categories, such as key locksmith services.

The bottom line is this: make sure you are covered before you get on the road. It is more expensive for you to get insurance once an accident has happened than it is to pay for it when it’s time to renew your policy.

Is liability insurance required by law in every state?

No, many states do not require it so please consult with an insurance broker or attorney about your specific laws.

What if I’m in an accident and do not have enough money to cover the damages?

If you own your limo outright, you can protect yourself by adding comprehensive coverage which will pay for damages to your vehicle.

What is Personal Injury Protection?

This coverage protects you from injuries to passengers regardless of who causes an accident.

I don’t have a limo yet, is there any other type of vehicle I can insure?

Yes! You can get umbrella coverage which can help protect you in the event of a lawsuit.

To Bring Things To A Close

We hope you found this blog post helpful and we’d love to hear what your thoughts are on these 11 steps. Comment below or share with us so we can learn more about the challenges that limousine drivers face!

Disclaimer: Please use this information as a guideline and not as legal advice because laws may have changed since the time of writing. Please consult with an insurance broker or attorney for legal advice.

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