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Why Limo Insuance Quotes Don’t Come Cheap
Businesses are expensive to insure. Businesses that transport clients around dangerous streets even more so. The limo service business requires more coverages than other industries. You have to buy insurance for your passengers. You have to buy insurance for your drivers. You have to buy insurance for your limousines themselves. That said, not all limo insurance policies are created equal. There are certain things that your insurance agent will look at when tallying the price of your quote.
Your location – do you operate in a rural area or a busy city?
Your policy limits – how much does your policy cover?
Your policy deductibles – how much do you pay out-of-pocket after an accident
Accident history – are accidents commonplace in your company?
Training programs – are your chaffers adequately trained?
Types of limos you use – do you use standard limos or stretch limos?
Type of work you do – does your business mainly do wedding services, prom nights, corporate transport, nights on town, or funerals?
Which Services Are Least Expensive to Insure
A limo service can be a lot of different things. Some services are cheaper to insure than other services. Here are the different types of rides ranked from cheapest to most expensive
1. Standard chaffeuring
If you mainly do weddings or drive corporate clients around in luxury sedans, you won’t pay as much as other services. And why should you? When your driver is sitting in an idling car for hours on end, not much can go wrong.
2. Airport shuttles
If most of your business comes from picking up and dropping off clients at the airport all day long, expect to pay a little more. It’s a simple issue of time spent on the road. Airport shuttles spend more time driving and therefore are more likely to get into an accident.
3. Stretch Limos
Stretch limos are more dangerous for drivers and passengers. Not only is a stretch sedan or stretch SUV harder to drive and park, it’s less safe to ride in. Passengers aren’t buckled in. The second alternator means that mechanical problems are more likely. For these reasons, insurance companies are wary of stretch limos.
4. Party Buses
A lot of other insurance agents will refuse to insure party buses because they’re so risky. Part of this is the popular conception of party buses — a lot of drunk, rowdy passengers riding in a strobe-lit bus doesn’t sound safe. But it’s also a numbers issue. Fifteen passenger vehicles are more expensive to insure than three passenger vehicles. If you operate a fleet of party buses, expect to pay a lot for insurance.
How to Get a Lower Limo Insurance Quote
It is possible to save money on limo insurance without sacrificing coverage. You just have to be a savy shopper. Here we’ve outlined a few tactics to secure a better price.
Request a higher deductible. Every policy comes with a deductible. A higher deductible means you’ll pay more in the event of an accident, but it also means you’ll pay less in your month-to-month premium. A limo company with zero accidents and a high deductible will pay less in the long run.
Pay higher deposit upfront. Many insurance companies will cut you a deal if you pay a portion of your premium upfront. If you put down a 20% deposit at the beginning of the year, they’ll usually reduce your overall price by a small amount.
Bundle your coverage. Don’t just get your auto insurance with one company. Get your business insurance from them too. Most companies will offer a discount to customers who bundle their coverage with them.
Compare prices. The best and easiest way to save is to simply look at offers from multiple insurance agencies at once. The more agents you look at, the better picture you get of how much you can expect to pay.