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Limousines are most often used for weddings, proms, and special events because they are a timeless and charming mode of transportation.

However, this makes demand sporadic and seasonal. In this case, insurance based on the actual usage and performance of the driver makes more sense. Livery insurance is the required insurance for transportation scheduled ahead of time as seen in the limousine industry. Combining usage-based insurance with livery insurance is the best way to lower costs and help regulate cash flow for chauffeur and limousine services.

Current prices for insurance for limousines can be between $5,000-$10,000 annually per vehicle. This could be lowered to $3,000-$6,000 according to statistics from usage-based insurance policyholders.

Usage-based insurance is broken up between driving frequency and driving habits. Driving frequency is most relevant to the chauffeur industry given its work timetable. However, tracking driving activity of limousine drivers can be beneficial to overall business. By tracking odometer readings and using telematic devices installed into the car based on GPS and cellular systems, insurance companies can charge for the exact miles driven and observe driving activity. This allows for insurance tailored to the driver and will allow them to hold onto extra money when work is slow.

Observing acceleration, braking, and corner turning can also improve the safety of limousine driving which is extremely beneficial considering their liabilities. Lower risk drivers will pay even less and this will improve their likelihood of getting more clientele in the future if they have proven reliable driving.

Usage-based insurance is a growing option that companies like Progressive, Nationwide, and Allstate are beginning to offer. This is a win for everyone - it will help create jobs, foster trust in the chauffeur industry, and allow limousine services to manage money more efficiently.