What changed in 2025?
California’s Assembly Bill 1807 raised minimum auto-liability limits for charter-party carriers and transportation-network companies. Effective July 1, 2025, any vehicle licensed to haul
passengers for hire must carry at least $2 million combined single limit—double the old
requirement for stretch limos and sprinter vans, and four times the old minimum for sedans.
Who’s hit the hardest?
- Small limo fleets (1–10 vehicles) that relied on the lower TCP minimum of $750 k
- TNC “black-car” drivers using SUVs or luxury sedans under personal-auto style policies
- Wine-tour shuttles and party-bus operators that cross multiple counties per trip
- Airport-transfer services working out of SFO, LAX, SAN and charging flat fares
Why are premiums spiking?
- Higher limits, higher payouts. Insurers must reserve more capital for every vehicle on the road.
- Social-inflation verdicts. California jury awards for passenger-injury cases climbed 18 % between 2022 and 2024.
- Parts and labor costs. ADAS sensors, panoramic roofs and luxury interiors now cost 30–40 % more to repair after minor fender-benders.
- Cargo-style theft. Catalytic-converter and wheel thefts on idle limos have doubled statewide, pushing comprehensive rates up.
What coverages should every limo operator carry in 2025?
| Coverage | Needed Limit | 2025 Watch-Item |
|---|---|---|
| Auto Liability (Bodily Injury & Property Damage) | $2 M combined single limit | Required by AB-1807—must list CPUC or local airport authority as certificate holder. |
| Physical Damage | Stated or ACV on each unit | Verify stated values match post-COVID vehicle-replacement costs. |
| Uninsured / Underinsured Motorist | Match liability limit where feasible | California UM claim frequency up 11 % on freeways in 2024. |
| Workers’ Compensation | Statutory | Mandatory even for 1099 drivers if you dispatch or schedule them. |
| Excess / Umbrella | $3–5 M typical | Needed for airport-permit work and corporate contracts. |
How can operators keep premiums under control?
- Add outward- and inward-facing dash cams. Many carriers give 5–10 % credits when video is tied to telematics.
- Enroll in a defensive-driving program. Quarterly MVR checks and certificate uploads can shave another 5 %.
- Raise comp/collision deductibles smartly. Moving from $500 to $1 000 saves ~8 % without exposing you to catastrophic loss.
- Bundle garage liability with auto. Multi-line packages reduce policy fees and spread risk for the underwriter.
- Document vehicle maintenance. Uploading oil-change, brake, and tire-rotation logs shows carriers you’re on top of safety compliance.
What funding helps pay for cleaner, safer vehicles?
- California HVIP vouchers – up to $60 k for zero-emission shuttle vans
- Carl Moyer grants – incentives to repower pre-2010 diesel engines
- Federal Clean-Commercial Vehicle Tax Credits – up to $40 k per qualifying unit
Ready for a compliance check?
Inszone shops several admitted and surplus-line markets,
finds dash-cam and telematics discounts and delivers CPUC-ready certificates—often the same day. Request a limo policy review now.
References
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- California Assembly Bill 1807 – Passenger Carrier Liability Limits (enacted 2024)
- California Public Utilities Commission – Passenger Carrier Licensing & Insurance
- ATRI – Cost of Trucking & Social Inflation Trends (2025)
- California Highway Patrol – Auto Theft Statistics (Dec 2024)
- California HVIP – Voucher Incentive Program