Do Limousines Need Specialty Insurance?

Many limousine drivers assume that their auto insurance has sufficient coverage. In some cases, it may make sense for high-end drivers to get additional coverage, especially if they routinely transport high net worth individuals, celebrities, and athletes.

Specialty Insurance

Insurance companies provide customized policies to limo drivers and chauffeurs. Here are a few examples of specialty insurance policies:

  • Chauffeur driver insurance
  • Hire and reward insurance
  • Executive vehicle insurance
  • Limousine insurance
  • Limo insurance
  • Chauffeur car insurance

High-Risk Coverage

Some insurers avoid providing coverage when celebrities are involved. They want to avoid making large payments in case expensive property gets destroyed. Some insurers don’t want high-risk profiles in their portfolio. Thus, it all depends on the risks involved.

Insurance companies may inquire about the nature of the passengers being carried. If they sense that a limousine service’s client base has a history of violent behavior, a chauffeur may experience delays and hassle in getting coverage.

It may make sense for a limo driver to get specialty insurance because limousines are more expensive than regular vehicles. Thus, it represents a significant investment for the driver.

The insurance industry recognizes this. Thus, they’ve introduced special policies for service providers who cater to business executives, famous celebrities, high net worth families, and athletes.

Efficient Market

The Web is making the insurance industry more efficient by providing more information to brokers and consumers. It’s also resulting in cheaper rates and customized policies for buyers.

Some observers contend that big companies yield most of the advantage in this highly competitive industry. Organizations with large resources can bundle policy packages, offer volume discounts, do cross-promotions, and re-package risk in ways that small companies can’t.

Limo drivers and chauffeurs looking for cheaper rates may be eligible for discounts based on age, driving record, memberships, military service, or other considerations. Some insurers offer discounts to senior citizens. Defensive driving courses can also reduce premiums.

Because of the Internet, people can now shop around for the best deal. You can quickly obtain quotes online.

Asset Protection

Taxi drivers often rent their vehicles from a cab company. However, many limo drivers are independent contractors and own their transportation.

In addition to a significant investment in the purchase or lease of the limousine, drivers often spend thousands of dollars for interior effect, such as entertainment systems, leather fabric, and alcohol. Limo drivers can choose to get these items covered by their insurer.

 

About The Author:

Marv Dumon writes about limousine and chauffeur services. Visit Deluxe Limousine, a top limousine rental company based in Houston, Texas.