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How Much Does Limo Insurance Cost?
It’s no secret that one major cost for limousine operators is their insurance premium. It can get expensive. Luxury automobiles by themselves are expensive to insure. After you add in all the extra coverages to protect your drivers, your clients, and your business, things can become overwhelming. Insurance for limousine services depends on many variables, but most policies average somewhere between $5,000 and $10,000 per limo per year.
Luckily there are ways for you to reduce your costs and get a cheaper rate. To do this, you must understand what contributes to your limousine insurance rate in the first place.
What Determines Your Rate
When an insurance agent is quoting you, he’s looking at several details of your business. He wants to determine what kind of risk you pose his company, so he’ll ask about a few different things.
- Your location. Where you live greatly impacts how much you pay for limo insurance. States like New Jersey and Louisiana have higher rates than states like Ohio and North Carolina.
- Your limits and deductibles. The way your policy is structured plays a big role in how much you pay. Higher limits and lower deductibles give you and your customers better piece of mind, but they also increase your overall premium.
- Your accident history. If you and your drivers have never gotten into an accident, that’s great news! You can expect a cheaper rate. But even if you have gotten into an accident or two, don’t worry too much. It’s rare to find a limo operator without a few accidents under their belt. Insurance companies understand this. Though it’s much better to have as few accidents as possible, one or two won’t make you uninsurable.
- The business you do. A limo driver can be a lot of things. He can specialize in wedding services, prom nights, and nights on the town. He can do airport pick-ups as a scheduled shuttle service or he can be a personal driver for corporate clients. Each of these specialities carries its own risks. As such, they are priced differently. Which one is cheapest? That’s hard to say. Different insurance agents prefer working with different types of limousine services. That’s another reason why it pays to shop around.
- The vehicles you own. Similarly, there are a lot of different kinds of limousines themselves. You’ve got luxury sedans, classic cars, stretch limos, stretch SUVs, and limo buses just to name a few. Each costs a different amount to insure.
- Your area of operation. The closer you stay to your base of operation, the cheaper you are to insure. Interstate operations must abide by stricter rules and are therefore more costly to insure.
- Your business experience. A chauffeur service with a few years experience is more reliable, and as a result, cheaper to get a policy for.
Average Cost of Limousine Coverages
How much you pay for limousine insurance depends on how many vehicles you have and which coverages you get. A single driver running his own chauffeur service will only be responsible for his own insurance and the insurance of his passengers. A dispatch service will need additional coverages like general liability and workers compensation.
How to Get Cheap Limousine Insurance
Require that all driver take a safe driving course
Safety should be a top priority for your business. Not only does a solid safety plan protect your drivers and customers, but it makes your insurance premiums more affordable. Make sure your safety plan covers defensive driving, driving at night and in unsafe areas, and driving in inclement weather.
Hire reliable drivers
A good driver with CDL experience and few points on his license is hard to come by. But you have to make it work. Insurance companies look at your driver roster. Hiring a questionable driver sends a red flag to the insurance company. If you’re willing to take a risk with your drivers, what else are you willing to take a risk with?
Request a higher deductible
If you have physical damage insurance for your fleet, it might be a good idea to increase your deductible. Your deductible can go all the way up to $5,000. This can save you money… if you trust your drivers enough not to get into accidents.
Pay a higher deposit upfront (at least 20%)
Instead of paying your premium entirely month-to-month, pay all your premium or part of it upfront. Oftentimes the insurance company will offer a discount for speedy bill payment.
Bundle your coverage
If you own a large fleet of limousines, you will need to insure each vehicle separately. You will also need to insure your business and your garage if you own one. You can get a discount on your overall insurance if you buy all these coverages through a single insurance agency.
Get three quotes from three agents and save
The best way to get a lower price on insurance right now is to compare quotes between multiple agents at once. We’ve made this easy. Fill out one form and we’ll connect you with three limousine insurance agents who want to compete for your business!