7 ways to reduce and control your limo insurance costs
SELECT THE RIGHT BROKER– only use a broker that has experience in the limo business. An experienced limo insurance broker will have access to companies that specialize in insuring limousines. We know the coverages you need, and understand how to get you the best rates.
REQUEST QUOTES FROM MORE THAN ONE COMPANY– Ask the broker which insurance companies he will be quoting with, and make sure you see all quotes. We provide our clients with a spreadsheet each and every year comparing the top 5 insurance companies’ rates.
REVIEW YOUR LOSS RUNS– Loss runs are a listing of all claims filed with your insurance company. Request the loss runs every year and review them to verify the accuracy. Many times insurance companies make errors or code accidents to the wrong insured. Insurance companies discount their rates based on a process known as experience rating. Experience rating can result in discounts, or increases in premium depending on the frequency or severity of your claims activity. Having trouble getting your loss runs? I CAN HELP. Call me!
REVIEW THE VALUE OF YOUR FLEET– A portion of your insurance policy premium comes from the cost to provide physical damage coverage; comprehensive and collision. Most insurers base the premium on the value that YOU put on the application. Make sure that the value of each vehicle accurately reflects the current book value of the vehicle. Insurance companies will only pay the Actual Cash Value of a vehicle in the event that it is stolen or totaled in an accident. The Actual Cash Value is defined as the cost to replace the vehicle minus depreciation. So there is no point in over-insuring the vehicle, you will never get more than the actual cash value. Make sure your values are correct otherwise you will be paying too much premium for a value you will never receive.
LOOK AT YOUR POLICY DEDUCTIBLE– If you are like most limousine companies, you don’t put in a claim for every little dent or scratch on your vehicle. You may handle some of the small claims and fix them yourself. So why pay for a low deductible? Compare the cost of a higher deductible. If you have good loss experience, and rarely file claims on your vehicles, you may want to consider increasing your deductible to $2500 or even $5000. The savings may be substantial, depending on the vehicles in your fleet.
MAKE SURE YOU HAVE THE BEST DRIVERS– Your drivers say a lot about you and the type of operation you run. Insurance companies look very closely at each driver’s motor vehicle record, and often determine pricing based on the overall record of your fleet’s driving records. You should maintain a file on each driver and review their motor vehicle record every 6 months. Not getting this service from your current broker? Call me, I will help!
HAVE GOOD LOSS CONTROL MEASURES IN PLACE– As mentioned in #3 above, you must have a good loss history in order to get the most preferred rates from insurers. A good “track record” with regard to claims does not just happen by accident. You must make a concerted effort to put together safety measures that ensure good performance of your company in the eyes of the insurance carrier. I CAN HELP. Contact me to discuss our free employee handbook and limo safety manual. I work with you to customize this handbook to your company’s needs, and give you the guidelines that insurance companies want to see to in order to offer Preferred pricing.