Vehicles that carry paying passengers need commercial livery (for-hire) insurance, not a personal auto policy — personal policies typically exclude transporting passengers for payment. Regulators set minimum coverage levels for for-hire vehicles, which vary by jurisdiction and vehicle size, and larger passenger vans operating between states face federal requirements. For passengers, proper insurance means that if something goes wrong, there’s coverage — a key reason to book licensed, insured operators.

Why personal auto insurance isn’t enough

Personal policies generally exclude “livery” use — carrying passengers for a fee. A driver using a personal policy for paid rides may have no coverage for passengers.

Who sets requirements

Regulator Scope
New York City TLC For-hire vehicles and bases operating in NYC
New York State Licensing and insurance for for-hire vehicles
New Jersey Limousine and livery requirements
Federal (FMCSA) Interstate passenger carriers, including vans carrying 9–15 passengers

Requirements differ by vehicle type and operation; reputable companies carry coverage at or above required minimums.

Questions to ask

  • Are your vehicles commercially insured for passenger service?
  • Are you licensed for trips between New York and New Jersey?
  • Can you provide a certificate of insurance? (Common for corporate clients and event venues.)

Corporate and venue requirements

Many corporate clients and venues require proof of insurance before allowing vehicles on site, especially for weddings and events. Read how to choose a black car company.

Workers’ compensation

In New York, the Black Car Fund provides workers’ compensation for many black car drivers. Read the Black Car Fund.

Insurance and your trip

Insurance protects passengers, the company and third parties if an accident happens. For corporate travel, weddings and events, verifying coverage is part of due diligence — just as you would check a caterer or venue. Read duty of care in ground transportation.

Beware of unlicensed operators

Unlicensed operators may offer low prices but lack proper insurance, putting passengers at risk. Pre-booking with a licensed company avoids this. Read verify your ride.