# What Is a Livery Vehicle? When a NEMT Car Needs Livery Plates, Permits, and Insurance

Canonical URL: https://nemtguide.com/glossary/livery-vehicle/ · Updated 2026-09-30

A livery vehicle is a car or van, other than a taxi or bus, used in the business of carrying passengers for pay, usually on trips booked in advance. In states that use the term, such as New York and Connecticut, a NEMT sedan or minivan carrying riders for pay is usually a livery vehicle, so it needs for-hire registration, commercial insurance, and often a state or city permit.

- Livery means carrying passengers for pay in a car or van that is not a taxi or bus, usually on booked trips.
- In New York, a livery registration needs a for-hire insurance certificate, and any lapse costs you your plates for 30 days.
- Connecticut requires a DOT livery permit, DMV livery plates, $1.5 million in coverage, and an F endorsement for each driver.
- Personal auto policies usually exclude livery use, even when a driver is paid only for mileage.
- New York Medicaid enrolls New York City car service as its own livery category, with TLC licensing.

## What livery means

In vehicle law, livery means carrying passengers for pay in a car or van that is not a taxi or a bus, usually on trips booked in advance.

| Where the word appears | What it means there |
|---|---|
| New York Vehicle and Traffic Law 121-e | Every motor vehicle, other than a taxicab or a bus, used in the business of carrying passengers for pay. Rental cars driven by the renter are left out. |
| Connecticut General Statutes 13b-101 | Every motor vehicle of a business that holds itself out as carrying passengers for hire, except certified buses and taxis, school buses, rideshare company cars, and a few community transit systems |
| New York City Taxi and Limousine Commission | Community cars, also called liveries: cars carrying five or fewer passengers, dispatched from a licensed base on a prearranged basis, with flat fares up front |
| Personal auto insurance policies | "Public or livery conveyance": using the car to carry people for a fee, which most personal policies exclude |

Other states use other words for the same idea. Washington licenses for hire vehicles, meaning vehicles carrying passengers for compensation (RCW 46.72.010). Minnesota regulates special transportation service: regular rides for elderly riders and riders with disabilities by bus, van, taxi, or volunteer driver, including some Medicaid NEMT (Minnesota Statutes 174.29). Your [NEMT license requirements](https://nemtguide.com/guides/nemt-license-requirements/) depend on which word your state uses and how it defines it.

## When a NEMT vehicle counts as livery

A sedan or minivan carrying [ambulatory](https://nemtguide.com/glossary/ambulatory/) Medicaid riders to booked appointments for pay fits the livery definitions in New York and Connecticut. Three states show how that plays out, as of September 2026:

| State | How NEMT fits | Who licenses it |
|---|---|---|
| New York | Medicaid enrolls New York City car service as livery, category of service 0605. It is curb to curb, limited to New York City, and requires TLC licensing. Taxi, category 0603, is a separate curb-to-curb category. | DMV registers the vehicle, and the NYC Taxi and Limousine Commission licenses bases, cars, and drivers in the city |
| Connecticut | Any company in the business of carrying passengers for hire is in livery service unless an exception applies, so a NEMT company needs a livery permit for sedans, minivans, and wheelchair vans alike | CTDOT issues the permit, then DMV registers each vehicle as livery |
| Illinois | Medicaid enrolls service cars licensed by the Secretary of State as livery or public transportation (HFS handbook, March 11, 2024) | Secretary of State, plus any local regulator |

Two New York details matter for small fleets. Taxi providers must own or lease every vehicle in their own company's name, and register, insure, and maintain it themselves. Livery providers in New York City are exempt from that rule and may use drivers who own and operate their own cars, as long as they meet TLC licensing and DMV requirements. New York Medicaid also does not require an ambulette company to hold a separate taxi or livery license for curb-to-curb rides, including in sedans and minivans, though local TLC rules can still apply. Those trips bill at taxi-level codes. See [ambulette](https://nemtguide.com/glossary/ambulette/) for the wheelchair van side.

## Plates, permits, and driver licenses

### New York

- **Registration.** DMV registers livery vehicles in class 55, code OML. You need a For-Hire Insurance Certificate (FH-1) or a surety bond certificate (FH-1B) to register. Keep a current for-hire certificate in the vehicle.
- **Lapses cost you the plates.** Any lapse in coverage brings a 30-day revocation. You surrender the plates and registration for 30 days, then pay a new registration fee.
- **Drivers.** To drive a taxi or livery vehicle anywhere in New York State, a driver must be 18 or older with a Class E license or a Class A, B, or C commercial license.
- **New York City.** Every for-hire vehicle must be affiliated with a TLC-licensed base, and the base's class decides whether the car is a livery, black car, or limousine. As of September 2026, the TLC accepts new for-hire vehicle license applications only for wheelchair accessible vehicles. Base owners must be fingerprinted.

### Connecticut

1. **Get a CTDOT livery permit.** The application costs $200. The department weighs public convenience and necessity, your suitability, your finances, and your ability to run the service ([General Statutes 13b-103](https://www.cga.ct.gov/current/pub/chap_244b.htm)). The June 2026 decision below followed a public hearing.
2. **Or a restricted permit.** CTDOT also issues restricted permits for elderly riders and riders with disabilities, which allow only vehicles that can carry at least one rider seated in a wheelchair, and for government contracts.
3. **Register each vehicle as livery.** With the permit, you apply to DMV for livery registration. A vehicle for fewer than 10 adults must display its livery registration while in service (13b-106).
4. **Get each driver the F endorsement.** Connecticut's public passenger endorsement, known as the F endorsement, is required to drive a livery vehicle with passengers. Drivers must be 18 or older, pass a physical exam, and pass state and national criminal history checks. While an application is pending, you may let a new driver work for up to 90 days once you run your own criminal history and sex offender registry check and review the driver's record (General Statutes 14-44).

A June 4, 2026 CTDOT decision shows the process for a small NEMT start. A West Haven company asked to run three minivans in general livery service. It showed that the state's Medicaid broker, MTM Health, was prepared to contract with it for NEMT, that it planned rides for dialysis patients, and that it had cash to cover six months of costs, including $14,088 in insurance premiums. CTDOT granted three vehicles. The company had 60 days to register and insure them, and it cannot sell the permit until a vehicle has run on livery plates for 24 months.

### Illinois

Illinois Medicaid requires drivers and vehicles to meet Secretary of State licensing rules, the insurance rules that apply, and any local rules. Taxi, service car, and medicar drivers and attendants must complete a state-approved safety training program before carrying Medicaid riders, and renew it every three years (HFS handbook, March 11, 2024).

## Insurance for a livery vehicle

Livery minimums depend on the state, the city, and how many passengers the vehicle carries:

| Where | Vehicle | Minimum liability |
|---|---|---|
| New York (VTL 370, revised March 8, 2024) | Seats 7 or fewer passengers | $25,000 per person and $50,000 per accident for injury, $50,000 and $100,000 for death, $10,000 property damage, plus uninsured motorist coverage |
| New York | Seats 8 or more passengers | $1.5 million combined single limit |
| New York City (TLC rules, as of September 2026) | Livery or black car for 1 to 7 passengers | $100,000 per person and $300,000 per occurrence, $10,000 property damage, plus $100,000 personal injury protection |
| Connecticut (General Statutes 14-29, as of September 2026) | Livery vehicle for 14 or fewer passengers | $1.5 million per accident |
| Connecticut | Livery vehicle for 15 or more passengers | $5 million per accident |

Brokers and health plans often require more, and they name specific coverages. See [NEMT insurance requirements](https://nemtguide.com/guides/nemt-insurance-requirements/).

Do not rely on a personal policy. The California Department of Insurance gives a typical exclusion: no coverage while the vehicle "is being used as a public or livery conveyance," except for a share-the-expense car pool. Even mileage pay can trigger it. In State Farm v. LogistiCare, decided May 23, 2014, a volunteer driver was paid 44 cents a mile for ambulatory Medicaid riders and 48 cents for wheelchair riders. Her personal policy excluded carrying people "for a charge," and the federal appeals court held the insurer had a duty to defend but no duty to pay the claim.

## How to check what your state requires

1. **Read your state's vehicle code definitions.** Look up livery, for-hire, taxi, and limousine. The [state guides](https://nemtguide.com/states/) name the agencies for each state.
2. **Ask your DMV which registration class fits.** Tell it you carry Medicaid riders for pay on booked trips, and ask what insurance filing it needs.
3. **Ask about state authority.** Some states license carriers through a transportation department or utilities commission, as Connecticut does through CTDOT.
4. **Check your city and county.** New York City licenses for-hire service through the TLC, and other cities and counties can have their own rules.
5. **Match your Medicaid category.** Your state manual or broker says which category a car belongs in and what proof of licensing it wants at enrollment.
6. **Buy commercial coverage that names the use.** Tell the insurer the vehicle carries paying passengers, and have it file any state certificate before the first trip.

If you already run cars for hire, see [how to add NEMT to a taxi business](https://nemtguide.com/guides/add-nemt-to-taxi-business/).

## Frequently asked questions

### Is a NEMT car a livery vehicle?

In states that use the term, usually yes. New York defines livery as every motor vehicle, other than a taxicab or bus, used in the business of carrying passengers for pay (Vehicle and Traffic Law 121-e). Connecticut covers every vehicle of a business that carries passengers for hire, with exceptions such as certified taxis, buses, and school buses (General Statutes 13b-101). A NEMT sedan carrying Medicaid riders for pay fits both.

### What is the difference between a livery vehicle and a taxi?

The license behind the car. New York law defines a taxicab as a vehicle carrying passengers for pay under a license or permit from a local authority (Vehicle and Traffic Law 148-a), and its livery definition leaves out taxicabs and buses. In New York City, the Taxi and Limousine Commission calls liveries community cars: they give prearranged rides dispatched from a licensed base and must offer riders flat fares up front.

### Can I use my personal car insurance for a livery vehicle?

No. The California Department of Insurance says most standard personal auto policies exclude livery, meaning driving for hire, and the Illinois Department of Insurance says the same exclusions are common. In a 2014 Mississippi case, a federal appeals court held that a personal policy's exclusion for carrying people for a charge left no indemnity coverage for a volunteer paid only mileage to drive Medicaid riders.

### Do livery drivers need a special license?

Often. In New York State, a taxi or livery driver must be at least 18 and hold a Class E license or a commercial license, and New York City drivers also need a TLC license. In Connecticut, taxi and livery drivers need a public passenger endorsement, known as the F endorsement, which takes a physical exam and state and national criminal history checks (General Statutes 14-44).

### Does a wheelchair van need livery plates?

It depends on the state. New York regulates ambulettes separately: the Department of Transportation authorizes and inspects them, and their drivers must qualify under Article 19-A of the Vehicle and Traffic Law. Connecticut treats a wheelchair van for hire as livery, and its restricted livery permit for elderly riders and riders with disabilities allows only vehicles that can carry at least one rider seated in a wheelchair.

## Official resources

- [NY DMV: For-hire insurance requirements](https://dmv.ny.gov/insurance/for-hire-insurance-requirements)
- [NYC TLC: Get a for-hire vehicle license](https://www.nyc.gov/site/tlc/vehicles/get-a-for-hire-vehicle-license.page)
- [CTDOT: Regulatory and Compliance Unit (livery permits)](https://portal.ct.gov/dot/publictrans/bureau-of-public-transportation/regulatory-compliance-unit)
- [eMedNY: Medicaid Transportation Policy Manual](https://www.emedny.org/ProviderManuals/Transportation/PDFS/Transportation_Manual_Policy_Section.pdf)