The National Limousine Association (NLA) is sounding the alarm on a growing insurance crisis that threatens the viability of thousands of small and midsize 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,” says NLA President Brett Barenholtz of Above All/Maine Limousine. “We need immediate reforms to protect small businesses, ensure fair pricing and restore balance to the marketplace.”
NLA President Brett Barenholtz of Above All/Maine Limousine
Featuring a national survey of for-hire vehicle operators, the report reveals that 87% of 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 they say 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,” says Matt Daus, transportation technology chair, UTRC at City College and chair of Windels Marx’s Transportation Practice Group. “It is my hope that this blueprint for meaningful change will ensure the continued vitality of the limousine industry, and my message to all involved is: ‘Use it or lose it.’ The very continued existence of the industry is at stake, so this report cannot sit on a shelf.”
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 framework:
- 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 urges policymakers, insurers and industry stakeholders to engage in collaborative dialogue and take swift action to implement the report’s recommendations.
To read the full report, click here.
Visit limo.org for more information.
[10.21.25]
