Livery Conveyance Auto Insurance: What You Need To Know

Livery conveyance auto insurance is a type of commercial auto insurance for vehicles that transport people or goods for a fee. This includes taxis, limos, ridesharing, and delivery services. Livery services are typically excluded from personal auto insurance policies, and a separate business or commercial auto insurance policy is required for this type of use. Livery insurance provides financial protection for businesses, drivers, and passengers in the event of an accident while on the job. It is important for livery businesses to have the appropriate insurance coverage to protect themselves and their passengers.

Livery services exclusion

This exclusion has been a main exclusion in Personal Auto Policies (PAP) for many decades. The reason for this exclusion is that the premiums charged for PAPs do not include the risks associated with commercial business use, such as taxi cabs or freight companies. This means that if a vehicle is used for livery services and is only covered by a PAP, the driver will be uninsured for both auto liability and physical damage protection.

The rise of ridesharing services like Uber and Lyft has brought this exclusion into sharper focus. When a private vehicle is used as a paid conveyance, it is no longer covered by a standard auto insurance policy. This has led to insurance coverage concerns for drivers and passengers alike.

To address this issue, some insurance companies have started offering commercial auto policies or endorsements to their PAPs to cover drivers and vehicles when used for ridesharing services. These options provide the necessary coverage for those using their vehicles for paid conveyance, ensuring they are not left unprotected in the event of an accident or incident.

It is important for anyone considering using their vehicle for livery services, even on a part-time basis, to review their insurance policy carefully and ensure they have the appropriate coverage in place. Failure to do so could result in significant financial risk and liability.

For-hire livery insurance

Businesses that only occasionally transport people, such as hotels offering a shuttle service, typically do not require for-hire livery insurance. These businesses may be covered by their regular insurance policies. However, it is important to note that insurance requirements for livery businesses can vary by state, and some states may require more coverage than others. As such, it is advisable to check the local laws to ensure compliance with the necessary auto insurance requirements.

There are several types of for-hire livery insurance, including:

• Taxi Insurance: This type of insurance is designed to protect taxi drivers, their vehicles, and passengers in the event of an accident causing bodily injury or property damage while the taxi is in service.
• Black Car/Limousine Insurance: This is a liability coverage for black car and limo services that offer pre-arranged transportation with designated pick-up and drop-off locations.
• Rideshare Insurance: This type of insurance is designed for vehicles used for ridesharing services, such as Uber and Lyft. It offers customised coverage that extends beyond the limits of basic auto insurance policies.
• Non-Emergency Medical Transportation Insurance: This insurance covers businesses that provide pre-arranged transportation services for individuals travelling to or from non-emergency medical treatment. It is important to note that this type of insurance does not cover ambulances or other emergency vehicles.

Livery insurance requirements

Livery insurance, also known as for-hire livery insurance, is a type of commercial auto insurance for vehicles that transport people for a fee. This includes taxis, limos, ridesharing, and black car services. Livery insurance is designed to provide financial protection for businesses, drivers, and passengers in the event of an accident while on the job.

The requirements for livery insurance may vary depending on the state and local laws. For example, in New York City, the Taxi and Limousine Commission requires livery vehicles to maintain a minimum of $100,000/$300,000 in third-party liability coverage. It is important to check the specific requirements for your state and locality to ensure compliance.

The cost of livery insurance can be influenced by various factors, including the state, vehicle use, driving history, and coverage needs. Maintaining a good driving record can help keep premiums low. Additionally, discounts may be available to help reduce the overall cost of livery insurance.

It is worth noting that livery insurance is typically not included in personal auto policies (PAP). A separate business auto policy (BAP) or commercial insurance is usually required for vehicles engaged in transporting people or goods for a fee. This is because livery services are considered a business or commercial use, which comes with different risks and liabilities compared to personal or private vehicle use.

Businesses that only incidentally provide transportation, such as hotels offering a shuttle service, typically do not require livery insurance. However, it is always best to consult with an insurance professional to determine the specific coverage needs for your business or vehicle usage.

Livery insurance cost

Livery insurance, also known as for-hire livery insurance, is a type of commercial auto insurance for businesses that generate revenue by transporting people. This includes taxis, black car services, limousines, and rideshare drivers. Livery insurance is typically not needed for businesses that only incidentally transport people, such as hotels offering a shuttle service.

The cost of livery insurance can vary depending on several factors, including the state, vehicle use, driving history, and coverage needs. Maintaining a good driving record can help keep premiums low, and discounts may also be available to reduce costs.

In the United States, livery insurance is available in several states, including Alaska, Florida, Illinois, Nevada, and New Jersey. The cost of livery insurance in these states may differ due to varying regulations and market conditions.

To obtain an accurate quote for livery insurance, it is advisable to contact a specialised insurance provider or agent who can assess your specific needs and risks. They will consider factors such as the type of vehicle, the nature of the transportation business, and the desired level of coverage. By understanding these factors, insurance providers can tailor a policy that meets the unique requirements of each livery business.

Additionally, insurance companies may offer different rates, so shopping around and comparing prices can help find the most cost-effective option. It is worth noting that some insurance providers may have partnerships with specific carriers, allowing them to offer competitive rates and match the needs of livery businesses with the most suitable carrier.

Livery services vs taxis

Livery services and taxis are both for-hire vehicles that transport people for a fee. However, there are several key differences between the two.

Firstly, taxis are typically hailed by individuals on the street and provide transportation on an as-needed basis, whereas livery services are pre-arranged and scheduled in advance, with specific pick-up and drop-off locations. Taxis are usually smaller vehicles, carrying up to six or seven passengers, while livery services can include larger vehicles such as limousines, buses, and vans.

Another distinguishing factor is the method of charging. Taxis typically use a taximeter to calculate the fare based on time and distance travelled, whereas livery services may charge a flat rate for the pre-arranged trip.

In terms of appearance, taxis often have distinctive liveries, such as yellow paint, that make them easily identifiable. Livery vehicles, on the other hand, may not have a specific colour or marking and can include luxury vehicles such as limousines.

The regulatory requirements for taxis and livery services also differ. Taxis are regulated at the city or municipal level, with varying permits and licenses required. Livery services, on the other hand, may fall under different regulations depending on the specific type of service provided.

When it comes to insurance, the differences between taxis and livery services become important. Taxi insurance is typically designed for traditional taxi services that are hailed by individuals and do not offer pre-arranged transportation. Livery insurance, on the other hand, is a type of commercial auto insurance that covers businesses that provide pre-arranged transportation, such as limousine and shuttle services. The cost of livery insurance can vary depending on factors such as location, vehicle use, and driving history, typically ranging from $5,000 to $10,000 per vehicle per year.

In summary, while both taxis and livery services provide transportation for a fee, they differ in terms of their mode of hiring, vehicle type, charging method, appearance, regulation, and insurance requirements. Understanding these differences is crucial for both passengers and vehicle owners to ensure compliance with local regulations and adequate insurance coverage.

Frequently asked questions