The limousine industry is known for its extensive list of benefits. Many people choose to become a part of the business because of these advantages that are associated with selling or owning a limo service. Limo service businesses typically thrive in metropolitan areas where there’s high tourism, lots of corporate events, sporting events and other large gatherings.
If you plan on entering this industry, it’s important to keep in mind that the cost of running a limo service involves much more than just purchasing an appropriate vehicle. The vehicle is certainly part of the equation. However, you’ll also need to invest in liability insurance and car insurance for limos as well as any other type of insurance that may apply to your particular business.
Here are six benefits of having insurance for limousines:
1. Liability Insurance
This type of policy will protect you against claims made by third-party individuals who might be injured while riding in or around limos. Also, if it’s determined that the accident was caused by the limousine service, the third party’s medical expenses and other damages will be covered.
2. Uninsured/Under-Insured Motorist Insurance
Since it is common for individuals to hire a limo service after having consumed alcohol at an event or venue, potential accidents are more likely to occur on the road. Without uninsured/under-insured motorist insurance, you may be held liable for injuries to third parties if they are injured by the vehicles of people who don’t have auto insurance.
3. Car Insurance for Limos
Limo services that own their vehicles need to purchase car insurance for limos as well. This is necessary in order to protect the vehicle from damage due to vandalism or theft. In addition, this type of policy will help cover medical expenses in the event that a passenger is injured while riding in your limo.
4. Non-Owner Car Insurance for Limos
Even if you’re not the primary driver of your limousine, you’ll need to have a non-owner policy in order to keep your insurance rates low. This type of coverage can be much cheaper because you won’t be listed as the primary driver of the vehicle.
5. General Liability Insurance
In addition to liability insurance for limousine services, general liability insurance is often necessary as well. If you’re hosting an event in your limo, this type of coverage will protect you in the event that there are guests who become sick or injured. It may also be helpful to cover damages caused by party-goers if they break something in the limousine.
6. Cargo Insurance
If you plan to use your limo for deliveries, you’ll need to invest in cargo insurance. This type of coverage will protect your business against damages that may occur while transporting items.
How much is the cost of insurance for limousines?
Insurance costs vary based on factors such as experience, local competition and the type of business you run. For example, a highly-experienced company with a large clientele will typically pay more than a novice operator with fewer clients. In addition, rates will be higher in metropolitan areas where there is more competition and higher demand.
What is the difference between car insurance for limos and non-owner car insurance for limos?
Car insurance for limousines can be used by owners of limo services as well as people who want to rent out their vehicles on a full-time basis. This type of policy can be useful for covering your vehicle during the rental process. When you rent out your limo or drive guests in it, it will typically be covered by car insurance that rents cars to non-owners.
How much insurance do I need?
The amount of insurance you invest in will depend on factors such as the type of business you run and where you live. If you have a high-risk business, such as a limousine service, you’ll need to invest in the necessary level of protection. However, if you live and operate your business in an area that has a low risk of accidents and injuries, you may only need to take out liability insurance for limousines or general liability insurance.
What type of coverage should I invest in?
If you’re not sure which types of insurance to invest in, consult with a reputable insurance agent who has experience with the limousine industry. He or she will be able to guide you toward choosing a policy that matches your specific needs.
What factors will determine my insurance costs?
Insurance rates are typically determined by a variety of factors including local competition, industry experience and the amount of time your business has been in operation. In addition, it’s important to consider whether your limo is used primarily for personal or commercial purposes. If a limousine is used for personal reasons, you’ll need to have a non-owner policy in order to keep your rates down.
Taking All Of This Into Account
Limousine insurance is a necessity for anyone who owns this type of vehicle. This article has discussed the benefits that come with being insured and what you need to know before purchasing your policy. Comment below if you have any thoughts or questions about limo insurance! We’d love to hear from our readers, so feel free to share your feedback in the comment section!