Limousine insurance or black car insurance is designed to protect luxury, for-hire vehicles. If you are transporting someone for a fee, you need limousine insurance.
At LAP, we cover luxury vehicles used for airport transportation, weddings, meetings, business travel, bachelor/bachelorette parties, proms, government transportation, and beyond.
When choosing which type of livery insurance to cover your vehicle, why you transport someone is not as important as how you’re paid and the type of vehicle you use.
Limo Insurance is different than taxi and NEMT insurance because coverage needs to protect your luxury vehicle.
Also, where taxis service random pick-ups and drop-offs, limos and black cars transport passengers from point to point and are paid a pre-arranged fee.
Limousine insurance cost is custom. The cost will depend on several factors, including:
LAP RRG strives to provide affordable limousine insurance. In general, what we see is a range from $90 to $900 per month.
The cost of limo insurance varies more than other types of livery insurance because the vehicles involved can range tremendously. There’s a big difference between insuring a $50,000 Cadillac XTS and a $300,000 Bentley Mulsanne.
The type of insurance you need will depend on the requirements put in place by your company and also the state you operate in. Currently, we cover vehicles in Alabama, New Jersey, and Pennsylvania.
Alabama is a fault state, meaning the person who caused the accident compensates all injured parties. Alabama requires limo drivers to carry a “split limit” based on the number of people the vehicle transports.
If your vehicle carries less than 5 passengers, the split is 25/50/10.
If you carry between 5 and 20 passengers, the split is 50/200/30.
If you were to purchase the minimum required limo coverage in Alabama, the “split limit” would look like this:
$25,000 for bodily injury per person$50,000 for bodily injury per accident$10,000 for property damage
Beyond the minimums above, Alabama requires uninsured/underinsured motorist insurance.
New Jersey is a no-fault state, meaning your insurance is responsible for paying for damages regardless of who is at fault.
For limousines, the state requires $1,500,000 Combined Single Limit Liability Insurance (CSL). New Jersey also requires monthly proof of liability insurance.
In New Jersey, the split depends on how many passengers your vehicle transports. For vehicles carrying between 1-12 people, the bodily injury split is 25/100, and the property damage minimum is 10/25.
Pennsylvania, like New Jersey, is a no-fault state.
The minimum insurance required again depends on the capacity of your vehicle. For 15 passengers or less, Pennsylvania has a $35,000 minimum split coverage.
If you purchase the state minimum, the split looks like this:
Pennsylvania also requires $25,000 first-party medical benefits and $10,000 first-party wage loss benefits.
When we write your policy, please plan to discuss the primary state you intend to drive in a well as other possible states. In general, LAP’s policies will adjust to match the state limit as you cross borders. For example, let’s say you’re driving in Alabama, and you cross into a state with a higher state limit. In that case, your policy will adjust to match the state you’re driving in.
Please note that some states have interstate coverage requirements for crossing state borders while transporting people. It’s important to check with us and create a plan to stay within your coverage territory.
As you can see, requirements for limousine insurance vary wildly by state, which is why we are here to walk you through the process and make it as simple as possible.
LAP’s limo coverage includes:
It’s not abnormal to be refused coverage as insurance requirements are often stiff and lack adaptability.
While coverage can’t be guaranteed, every licensed driver is considered at LAP RRG. We take a holistic look at the situation.
When buying Limo Insurance, arm yourself with the questions below.
Our answers to the questions above are what set LAP apart from others in our industry.
At LAP, we know that the process of navigating limousine insurance and regulatory bodies can be challenging. That’s why our team carries over 35 years of transportation industry experience.
We appreciate the demands of operating a transportation company. Give us a call and let us help you find ways to protect your vehicles and people. Our experience allows us to identify what others easily miss.
Why not check with an insurance company backed by transportation industry experience.
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