Owning your own limousine is an excellent way to increase the value of – and profits from – your business. Whether you use your limo as a specialty, high-end car for hire to business professionals or you rent it out for high school dates and prom nights, the car is a big asset to your company.
Limousines are expensive vehicles that require a large investment of capital. If the limo is damaged in an auto accident, can your company afford to pay for the repairs? If the vehicle is destroyed completely, or stolen, can your company pay to replace it? These are just a few of the many reasons you need to carry commercial auto insurance on your company’s limousine. Here are the main types of insurance you’ll need:
- Liability Insurance – Liability insurance is mandated by law in each state of the nation. This coverage is there to protect other people from suffering losses when your limousine causes an auto accident. This insurance also protects your company from costly lawsuits and litigation if your limo is at fault in an accident. Liability consists of two parts: Payments for physical injuries to people and payments for damages caused to other people’s property.
- Bodily Injury – Bodily injury insurance pays the bills when people get hurt in an auto accident. If your limo is the cause of an auto accident, the bodily injury portion of your liability policy pays for the medical bills that result from the accident. Bodily injury pays for a wide variety of things. Ambulatory care and transport are paid with it for example, as is emergency room care and treatment. If accident victims must stay in the hospital for recovery, bodily injury pays the hospital bills. It also pays for physical therapy and other recuperation treatments that are deemed necessary. Aside from medical expenses, bodily injury will also pay accident victims for pain and suffering, lost wages, and funeral expenses of someone who is fatally injured.
- Property Damage – The second area covered by your liability policy is for property damages. When auto accidents happen, generally one or more vehicles sustain damages that must be repaired. Property damage coverage pays to have those repairs done so that the vehicles or other property is put back to the shape it was in before the auto accident occurred.
When you set up liability insurance coverage for your limousine you will choose policy maximum limits and an insurance deductible. The policy limits dictate the maximum amount of benefits your policy will pay for on a per accident basis. The deductible is the amount your company pays on a per accident basis. When minor accidents occur that do not cost more than your deductible for bodily injuries or property damages, you pay the bill instead of your insurance policy paying it.
Medical Payments – Medical payments coverage is quite useful for company’s who hire out their limousine as a taxi or other transport service, because it protects the driver and all passengers involved in an auto accident. When an accident occurs, regardless of who is at fault for the incident, medical payments coverage will pay for the resulting medical bills. This insurance isn’t available in all areas. Contact one of our licensed representatives today to determine whether it is an option for your company’s commercial insurance needs.
Physical Damage Insurance – Physical damages insurance protects your limo itself. It protects the limousine from damages and destruction, which protects your company from having to pay for repairs and replacements. This insurance coverage is important for protecting a limo that is leased, or one that still has an outstanding finance loan because it provides you with the highest level of protection you can get.
- Comprehensive Physical Damage Protection – Comprehensive damages protects you from just about everything other than a collision or a roll over. It protects you from losses caused by theft and break ins, damages caused by vandalism or rowdy crowds, and damages caused by weather events such as a hail storm.
- Collision Protection – Collision damages protection is needed to pay for the cost of repairs when your limo collides with another object, or when it overturns. If your limousine jumps the curb and hits a parking meter for example, collision damage protection will pay the repair costs.
- Specified Peril (CAC) – Specified Peril insurance is also known as CAC, or Fire and Theft with Combined Additional Coverage. This insurance is similar to comprehensive but it is much more limited in scope. It only protects you from perils and hazards that are specified on your policy, and that are not caused by a collision or roll over event.
Uninsured or Underinsured Motorist – Uninsured and underinsured motorist coverage protects you when accidents are the fault of another person. If the person at fault does not carry basic liability insurance, they have no recourse to pay for the damages and injuries they inflict on your limo and its passengers. If the at fault motorist has insurance but it is not enough to cover all of your damages, your company could be left with some of the bills as well. This policy will cover your limo, the driver and the passengers if another driver is at fault but does not have the resources to pay all of the bills. It works in similar ways to your general liability coverage.
- Bodily Injury – As covered with Liability Insurance.
- Property Damage – As covered with Liability Insurance.
- Collision Deductible Waiver (CDW) – If you carry uninsured or underinsured motorist bodily injury insurance, you can get a collision deductible waiver so that you do not have to pay your insurance deductible when you make a claim against the policy.
Other Important Commercial Auto Insurance For LIMOUSINE Includes:
- Rental – Rental insurance pays for the cost of a rental limo while yours is being repaired.
- Towing – Towing insurance pays for the cost of towing your limo away from an accident.
- Accessories (Ex: mileage meters, navigation units, radios) – Accessories insurance pays for the cost of repairing or replacing extra equipment you have installed in your limo. Examples of accessories include GPS navigational units, mileage meters and dispatch radios.