But how many have livery insurance?
If you drive a taxi or limo, there’s a chance you haven’t thought much about it. Your company does insure the vehicle. Rideshare drivers think they’re covered under their regular policy.
But there’s a case for having livery insurance and we’re going to break down what you need to know about it.
What is Livery Insurance?
Livery insurance is a type of commercial insurance that covers businesses that transport people on a for-hire basis. Commercial insurance is a broad term. In general, it refers to tow-truck drivers, pickup trucks for contractors, etc.
So, What is a Livery Vehicle?
Taxis, limos, Town Cars, and rideshare services are livery vehicles. Businesses that transport people as a courtesy, like hotel shuttles for example, aren’t considered livery vehicles. They’re covered under the business’ commercial policy.
What Does Commercially Insured Mean?
Commercial insurance is mandatory if you use your vehicle for any type of business purpose that picks up or delivers goods. This includes pizza delivery, messenger services, and companies that have vehicles that pick up supplies.
What’s the Difference Between Livery Insurance and Regular Insurance?
The difference is what’s covered in the policy. There are different liabilities and risks when you drive a vehicle for any kind of commercial use.
If you’re using your vehicle to transport goods or people and you’re in an accident, your regular car insurance could deny your claim. If you drive a livery car, special insurance can cover these claims.
Livery insurance also protects you beyond the commercial insurance the company has. Rideshare services have their own insurance but they may limit what they cover based on certain criteria.
What are the Requirements?
Requirements depend on what you’re doing and where you live. Your insurance agent will explain what you need to do in your state.
Many people drive for hire without notifying their insurance company because they don’t want to pay for livery insurance. Some don’t want to go through the process. Keep in mind that your carrier can drop you if you defraud them in any way.
Reasons to Get Livery Insurance
If you drive for-hire, there are benefits to carrying livery insurance like collision coverage and higher liability limits. The downside is that it may not be available from your carrier.
Depending on where you live, your driver record, and what coverage you need, livery insurance can be expensive. Ask your agent if your carrier has livery insurance and if they offer discounts.
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The OTTIS team has more than 20 years experience servicing the insurance needs of the West Coast. We take pride in having great rates and client-based solutions to meet your needs.