Limousines as we know them date back to 1902, although historians believe initial concepts were around during the 1700s in France. Today, limousines are being used more for commercial purposes. Business owners have to consider how limousines should be insured. Some experts believe commercial auto insurance for limousines is the best way to protect the business, drivers, and customers.
Commercial Auto Insurance Options for Limousines
A modern-day limousine is defined as a large, luxurious often chauffeur-driven sedan that usually has a glass partition separating the driver’s seat from the passenger compartment. Many businesses make a living by offering this as a service to the public; this requires the need for special insurance coverage.
The Federal Motor Carrier Safety Administration says that for-hire passenger carriers must be registered, licensed, and insured. Each state has specific requirements. Without commercial auto insurance, companies can find themselves facing fines from their state. Commercial auto insurance also helps to protect the business from financial impacts that can result when your vehicle is involved in an accident.
KF&B offers a list of coverage options that would benefit a limousine passenger company, such as:
- Auto Liability up to $1.5 million
- UM/UIM, PIP, and Medical Payments
- Auto Physical Damage
- General Liability
- Garage & Garage-Keepers Legal Liability
- Auto Excess Physical Damage
- Abusive Conduct Limited Liability Coverage
Several factors can determine how much you pay for commercial auto insurance for limousines: level of coverage, business location, types of limousines, driving record of limo drivers, etc. Typically, commercial auto insurance for limousines can cost between $5,000 – $10,000 per vehicle, per year. You can get a more accurate quote from KF&B Program Managers + Insurance Services by clicking here.
Accidents to Avoid When Operating a Limousine
There are a few things you can do to make sure that your drivers can safely operate a limousine.
- Watch Corners – Limousines are much longer than standard-sized sedans. You have to be more careful turning a corner. Limousines require special maneuvering to navigate turning a corner safely.
- Watch for Blindspots – Limousine drivers often have to rely on side mirrors to determine what is on the side of the vehicle and also what’s behind the vehicle. There is no rearview mirror on a limousine.
- Watch Your Speed – It can be difficult to perform a quick stop with a limousine. You have to remember you are operating a vehicle several pounds heavier than most other vehicles you’ll find on the road.
- Watch Your Terrain – Limousine drivers should avoid dirt roads or other surfaces that may cause the vehicle to get stuck. It’s even more difficult to get a limousine out of a tough spot.
Common Limousine Accidents
A limousine accident can be caused for different reasons, however, some accidents are more common than others.
- Rear-end Crash – This is believed to be the leading cause of limousine accidents. It can happen when a limo driver is following too closely to the vehicle in front of them or distracted driving.
- Sideswipe Crash – 1 in 4 limousine accidents are reported as sideswipes. This can happen when a limo driver isn’t aware of the turn radius or blind spots associated with limousines.
- Striking Parked Car – Busy parking lots can be tough for limo drivers to navigate. They aren’t designed for vehicles of that length and shape. It’s believed that these types of accidents account for 13% of limousine accidents.
- Multivehicle Accident – These types of accidents can be caused by distracted driving and can be the fault of the limo driver or other drivers.
KF&B: Let Us Guide You
Insuring your fleet of limousines with KF&B Program Managers + Insurance Services can help protect your business from harm. Driving on the road can come with many unexpected dangers. You can expect to recover from mishaps or accidents more quickly with adequate commercial auto insurance. We have no restrictions on the size of your fleet. Our coverage is available in most states within the U.S. Auto liability deductibles are also available. Find out more information about our services by clicking here.