Ah, the age old question: “What decided my livery insurance premiums? Why are they as high as they are?” While this question is normally a complicated one to answer, Wolpert Insurance & Risk Management can answer almost anything on the spot, especially when it pertains to livery vehicles. The fact of the matter is, not one single thing decided your insurance premiums; it’s an array of multiple factors that, combined, contribute to what you pay. Here is a breakdown of common things that affect insurance premiums.
• Location: Geographic location can play a part in determining premiums and it generally pertains to things like population density and whether or not you’re in an urban area. For instance, premiums for a livery company operating in Montana would certainly be cheaper than one operating in New York or the Greater Boston Area.
• Vehicle class code: Insurance carriers look at the class code of the vehicle as well. Normally, the larger the vehicle, the higher premiums. Commercial buses are at greater risks than limos, so their premiums are normally the highest. Limos are generally more expensive than sedans as well, due to their size. Also, the amount of miles normally traveled will also play a role.
• Driver: Your drivers may factor into what your premiums are, too. If one of your drivers has a spotty personal or professional driving record, then it may cause you to pay more for your insurance. Tickets, accidents, age and experience can all be taken under consideration.
• Loss ratio: Your company’s performance over a five year period is referred to as your “loss ratio.” This number is calculated by adding claims which are closed and open claims to get the total losses incurred over this period. The insurance company will total the premiums paid verses any incurred claims to get the loss ratio number.
If you have any more questions at all concerning your limo insurance, contact Wolpert Insurance & Risk Management today to get the information you’re looking for. We’ll do everything we can to answer your questions to the best of our ability.