Astronomical insurance costs....

[Blackvans1234]

Looking for insight regarding insurance costs.
I want to open a vehicle for hire company (wheelchair accessible transport) and have done some shopping around for commercial vehicle insurance. I have gotten two ball park insurance quotes/ranges.

One company told me 10k-14k/yr for 1 and 2 vehicles respectively.
The second company told me 15-20k/yr per vehicle.

The second company had 1million dollar minimum. My county requires 300k, so it is over 3x what I need (at minimum). Im hoping this could have something to do with the cost.

Anyone have any advice/ reassurance for me?

Considering I'll be making $40-$50/trip before expenses, it seems nearly impossible for me to cover expenses and then make money.

:mad::mad::mad:

[Harold Mansfield]

Not sure what state you're in, but I worked as a Limo driver here in NV and the insurance for commercial vehicles is ridiculous. I can certainly see how the cost could be prohibitive.
How do companies like Uber and Lyft get around it? Those drivers certainly do not have commercial insurance. Does the company have to carry additional liability?

I'd check to see how ride sharing services do it and see if there's a way to slip in under those rules.
Just spit-balling.

[Fulcrum]

I've got commercial auto insurance on 1 vehicle and the rates are cheaper than if I had left it as personal insurance.

[Harold Mansfield]

I think the difference is when carrying passengers as a business. Not sure though.

[Fulcrum]

Probably, but why the 2 vehicle fleet requirement?

[Blackvans1234]

Probably, but why the 2 vehicle fleet requirement?
Simple really:
Idiotic American Regulations (at the county level)

I wonder what would happen (from a regulatory standpoint) if I started with two vehicles and one developed some sort of mechanical issue and was removed from the fleet.

[Paul]

I don't know if those rates are all that outrageous considering the liability is more that just normal transport. You are handling wheelchair bound passengers getting in and out. Just a minor slip while loading or unloading an elderly wheel chair bound person or even a little fender bender is different than a regular passenger in a limo. Brittle bones, diminished balance and response time can result in a more serious injury for elderly from even a minor incident.

[Owen]

Not sure what state you're in, but I worked as a Limo driver here in NV and the insurance for commercial vehicles is ridiculous. I can certainly see how the cost could be prohibitive.
How do companies like Uber and Lyft get around it? Those drivers certainly do not have commercial insurance. Does the company have to carry additional liability?

I'd check to see how ride sharing services do it and see if there's a way to slip in under those rules.
Just spit-balling.

Because most of the city Uber drivers don't even have to register as a taxi. Uber looks at it like if you give your friends or someone a ride for gas money. Bad loop hole, but a loophole nonetheless.