hether you are just starting to think about opening your own limousine company or you are ready to shop around to find a better insurance policy than the one you currently have, it is important that you understand what the typical liability insurance coverage for limousine owners in Arizona and California is. Both of these states have minimum liability coverage requirements in place, and you must comply with these requirements if you want to avoid tickets, fines or worse.
The Minimum Coverage Requirements
When you review the typical liability insurance coverage for limousine owners in Arizona, you will find that you need liability coverage of at least $300,000, and you also need coverage for personal liability, property damage and uninsured or under-insured motorists. In California, you may need as much as $750,000 in liability coverage or more. There are variations depending on the size of the limo that you are driving and how many passengers it can hold, so it is important to learn more about the specific insurance requirements that may pertain to you and your limousine.
Why You May Need More Than the Minimum Coverage
While it is important to learn more about the typical liability insurance coverage for limousines, it is also important to note that you may need more than the minimum coverage required for liability. Keep in mind that liability coverage will only pay for the damages that you have caused to others. It will not pay for any of your own losses related to injury to your employees, repair costs for your damaged limo or a replacement of the vehicle. Your own personal property inside the vehicle may also need separate coverage. If you have a loan on the limo, your auto lender likely will require that you purchase extra coverage that will pay to repair or replace the limo if it is damaged or stolen.
The fact is that even purchasing the typical liability insurance coverage for limousine owners in Arizona or California can be expensive, and it often is not enough. Many limo owners will decide to invest in a policy that is more comprehensive and protective than the basic requirements dictated by law. This type of policy can be expensive, so you may consider shopping around to find the best deal on your policy after you have defined exactly what type of coverage and limits you want to purchase.
Professional Insurance Strategies, LLC
6708 W. Bethany Home Rd
Glendale, AZ 85301