Why Insuring Your Limousine Is A Little More Complicated that Normal Car Insurance
25
May
2011

If you are considering purchasing your own vehicle in Sydney and joining the ranks of the owner operators already in the business, with some good marketing and management, you know a limousine hire Sydney could earn you quite a lot of money. This owner operator business does not come without some risks and issues you will need to understand well. Because of the nature of this activity, getting the correct car and other insurance at the right cost will be big some of your biggest challenges. There are some common mistakes that can be made.

• Getting Quotes. Because of the nature of this business, in the fact it is quite limited, you might think that your normal car insurance provider does not have this product. This is not always the case. You can either look for brokers who specialize in car insurance for this particular purpose, or talk to car insurance providers to see whether they have this product or not. The products do exist, and they are available. It is just they are not advertised as much because there is a limited number of clients.

• Reporting New Drivers. Many companies will require you to report new drivers to them immediately. All your limousine drivers should have full background checks, including medical history, criminal history, driving records and credit history. All of these issues will affect the cost of that driver being insured. Reporting the driver will mean the insurance company has the driver on record, and if something happens, and that driver has not met all of the requirements, you might not be paid your claim. An insurer may only check all of these details once you go to claim. Just because they have accepted your notification, it does not mean you are actually insured. With on going policy, it is important we understand the requirements to maintain that policy’s validity. The insurance company will only investigate the issue once a claim is made. In the meantime, they will continue to collect your policy.

• Research. When doing your research on any insurance provider, you need to research on the underwriter. There are a number of rating and comparison sites that may help you. They may also be biased and influenced by the insurance companies. Finding the right rating site will only mean you have something to reference your own research against. The internet is a wonderful source of information and disinformation at the same time. Our own judgement, experience and decision-making abilities will always come into play.

• Issues Related to Independent Drivers. There are a number of other issues related to working as a contractor, or even a subcontractor driver. Most independent owners will subcontract drivers. The days of casual employees are long gone. If this is the case, each driver and the owner will have a number of issues to consider.

Your car insurance company can only help you so much. Talking with some of the existing operators and organizations, and learning from their experience and advice will be crucial. You could start by talking with some of the biggest limousine hire suppliers in Sydney. They will probably point you in the right direction and give you advice. By contracting yourself out to them, you know fitting their requirements will also mean you are meeting all of the requirements to be an independent operator.

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