Carrying liability insurance is mandatory for limousine drivers in almost every state throughout the United States; however, most limousine owners will purchase more insurance due to the value of their limousines, among other factors. There are more requirements pertaining to insurance for limos in Arizona, Nevada, and New Mexico, when compared to other states.
Quick Insurance Facts
Some quick facts that limousine owners in Arizona, Nevada, and New Mexico should know include the fact that an insurance policy for all limousine companies in these states must be at least $300,000 – this amount could be more, depending on the capacity (number of passengers) of the limousine. Insurance for limousines must also cover the following:
- Coverage against uninsured motorists, as well as under-insured motorists
- Personal liability
- Property damage
Available Insurance for Limousines
There are a variety of options available for limo owners in Arizona, Nevada, and New Mexico. Some of the insurance for limos in these states include:
Limited liability protects the driver and limousine owner from the cost of damage to the property of another person. Claims against the policy holder are also covered with limited liability insurance. Bodily injury – or property damage – is typically covered under limited liability insurance.
Full coverage insurance is also known as Collision and Comprehensive coverage. This insurance for limos protects the insured limo against damage that is caused by most objects, as well as other vehicles.
Other insurance for limos include:
- Excess/Umbrella Liability
- Physical Damage
- Property Damage
- Worker’s Compensation
Even though the insurance will cover the damages, the limousine owner is typically responsible for a deductible – this is the case with Collision and Comprehensive coverage. Limo owners should verify the deductible amount prior to purchasing the insurance for limos. After the deductible has been paid, the balance is then covered by the insurance company.
It is important that limousine owners follow the insurance regulations that are set in place in Arizona, Nevada, and New Mexico; failing to do so could lead to fines, loss of license, possible lawsuits, and more negative consequences that could affect the limo business.
To ensure that the laws set in place pertaining to insurance for limousines are followed, these states mandate that the weight and measurements for all limos are checked to verify that they are properly insured. There are also investigators that are specifically assigned to vehicles for hire; ensuring the safety of Arizona, Nevada, and New Mexico citizens.