The National Limousine Association (NLA) is sounding the alarm on a growing insurance crisis that threatens the viability of thousands of small and mid-sized ground transportation operators across the United States. A newly released report from the University Transportation Research Center (UTRC), Curbing the Limousine Insurance Crisis, highlights the unsustainable rise in insurance premiums – even for companies with strong safety records and minimal claims.
“This report confirms what our members have been experiencing firsthand: a broken insurance system that penalizes safe operators and threatens the future of our industry,” said NLA President, Brett Barenholtz. “We need immediate reforms to protect small businesses, ensure fair pricing and restore balance to the marketplace.”
Featuring a national survey of for-hire vehicle operators, the report revealed that 87% of limo operators experienced insurance premium increases over the past three years, with 25% reporting hikes exceeding 25%. Despite these increases, nearly half had no claims, and 93% had no claims exceeding policy limits. Additionally, 79% have formal safety programs, which are often ignored by insurers.
“There are many root causes of this affordability crisis where operator costs are ultimately passed on to business travelers, and this report delves into the different issues in every state, but also offers concrete solutions for the industry, regulators and legislators to help stabilize premiums and mitigate risk,” said Matthew W. Daus, Esq., the Transportation Technology Chair for UTRC at City College. “It is my hope that this blueprint for meaningful change will ensure the continued vitality of the limousine industry.”
The UTRC report identifies key drivers of the crisis, including insurance fraud, inflated legal settlements and regulatory delays. It also outlines a three-tiered solution:
- Immediate operator strategies, such as telematics and alternative insurance models
- Regulatory reforms, including faster rate approvals and recognition of safety programs
- Legal reforms, aimed at curbing excessive litigation and third-party lawsuit funding
The NLA has urged policymakers, insurers and industry stakeholders to engage in a collaborative dialogue and take swift action to implement the report’s recommendations. Read the full report at: www.utrc2.org/publications/curbing-limousine-insurance-crisis-hire-vehicle-insurance-reform.
Source: National Limousine Association
