We have heard of this type of business being launched in many cities across the US, such as Las Vegas, Chicago, Dallas, Louisville, KY and parts of New Jersey. It is essentially a professional designated driver service. Even London and South Korea, where they are called replacement drivers, have such driving services available for tipsy drivers that have had too much to drink and thus smartly choose not to drive.

It would appear that you would drive those that have overindulged (those that otherwise may be drunk drivers) home in their own cars.

One of companies we have read about has its drivers take the drunken person, and anyone else in their party home, in their own car (the person that is unable to drive themselves home) while someone else in the designated driver's company follows in a company car or van. This business states that they have liability insurance to cover their use of the customer's car.

In Wisconsin there are those that have a similar business where drivers again take customers home in their own vehicles but they get to the bar, party, etc to drive the person by driving a fold-up moped which the business driver can then put in the trunk of the customer's vehicle. This business, run by University of Wisconsin students for intoxicated patrons of bars, etc notes that a customer is required to show proof of car insurance and to sign a liability waiver.

Alumni of the University of Colorado have a similar business where again a moped that can fit in a trunk is used for the company to meet the customer that is too drunk to drive. They state that in CO it would not be legal for company to use their own cars to drive patrons, but it is legal for them to drive patrons’ cars. They say that the "designated driver" company employees are covered by their own insurance policies.

So it will depend upon how your service works as well as the state laws in which you are starting your business. To find out what type of auto insurance would best protect you and the person's car that you would be driving them home in check with your state's insurance regulator. This state agency should advise you of the insurance laws that will relate to your business and the type of insurance you should carry to protect yourself and your business.

Once you are aware of the types of auto insurance coverages that your state will require you to carry to have this type of business then you can shop around for rates.