limo insurance

Estimating Insurance Costs for Limo Companies

According to the Bureau of Transportation Statistics, over 45,000 people died from auto accidents in 2021. If you run a limo company, insurance is a necessity.

Luxury cars are expensive to insure. When you factor in the extra costs to protect your drivers, clients, and business, it can add up.

You need to ensure you get the right limo insurance for your business.

The good news is you have options! Here’s a look at the estimated insurance costs for limo companies.

What Is Limo Insurance?

Limo insurance coverage protects companies that provide transport on a for-hire basis. Limo service is popular for pre-scheduled rides to parties, airports, weddings, and other special events.

There are various types of vehicle insurance coverage available for limo companies. Plans include personal injury coverage, bodily injury coverage, property damage liability, and uninsured motorist coverage.

Before you choose a policy, consider the needs of your business. Although prices vary, most limo policies average $5,000 to $10,000 per car yearly.

What Determines the Cost?

An insurance agent will consider several factors before giving you an insurance quote. The company needs to determine whether you pose a risk to the insurance company. Here are a few key aspects you should consider:


The area where you live impacts the amount you will pay for limo insurance. Some states, including Louisiana and New Jersey, have higher rates than others, like North Carolina and Ohio.

Limits and Deductibles

The structure of your insurance policy plays a role in determining the amount you’ll pay. Higher limits and lower deductibles are popular features, but they do increase the overall premium.

Accident History

If your drivers have clean driving records and no accidents, that’s good for your business. You will probably receive a cheaper rate.

If you have a history of an accident or two, it’s not a problem. It’s rare to find a limo company with no history of accidents. And while a clean driving record is favorable, a few incidences on record doesn’t make you uninsurable.

Your Business Focus

Limo businesses are not all the same. Some specialize in parties, prom nights, wedding services, funerals, and more. Others may focus on being a shuttle service to the airport or a corporate driver for clients.

Each specialty has its own risks affecting its insurance rates. That’s why if you’re looking for limo insurance, you want to take some time to shop around for insurance policies and compare rates.

Your Business Experience

Experience is a plus. A well-established company with experienced drivers is more likely to get a cheaper rate.

Insurance Options for Limo Companies

Are you searching for affordable insurance for limo companies? Many factors contribute to the type of policy you need and the premium you’ll pay.

Having adequate insurance for your limo business is essential. And knowing you’re protected brings peace of mind.

Since 1925, the Oliver L. E. Soden Agency has been meeting the insurance needs of our customers. We work with other insurance companies and can provide various insurance solutions other companies cannot.

Contact us today to discuss your insurance needs.