There's a lot to take into consideration when purchasing insurance for tow trucks and it could become a bit confusing. When you're purchasing insurance in the high-risk field of towing, it's vital that you have the correct protection for your business as well as your employees and your vehicles. Take a look at the common mistakes made by insurance companies for tow trucks to know what you should be looking out for when purchasing tow truck insurance.

Common tow truck insurance errors

1. Do not ask about discounts.

Discounts are fantastic. They allow you lower rates for insurance by simply being you. It is worth taking time to ask the insurance agent who assists in your coverage if you are eligible to receive any discount. Remember that every insurer is different, and each one offers discounts that vary for different quantities.

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2. Selecting a deductible that is too low or high.

The tow truck insurance deduction will be the sum you are required to pay in the event that you file an insurance claim. You are responsible for your share of the loss, and the insurance company will take care of the remainder (up to the policy's maximum.) As an example, suppose you have a deductible of $1,000. You then have a claim of $8,000. You'd pay $1,000, while the insurer would then pay $7,000.

It is important to consider the financials of your company and determine the amount you can be able to afford as a deductible at any given moment.

3. You are not doing enough research about the carrier or going through the policy thoroughly.

When you're purchasing insurance for your tow trucks, you should do some research about the company. Be sure to find an insurance company you're looking at that is reliable and dependable. Consider also the amount of experience that the company has in writing tow truck insurance as well as dealing with commercial insurance for automobiles. It is also important to ensure that you go through the policy to be sure that you are aware of what is and isn't included.

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4. Do not ask about payment options.

There are a variety of choices for paying your tow truck insurance bill, so you're able to stay within your budget. Be sure to inquire about the various payment options available when purchasing insurance for your truck so you can choose the one that's most beneficial for you.

Pro tip: See whether there's a reduction to pay in whole. It could be quite a shock to the wallet If you're capable of paying in full you could be able to pay less in the end.

5. The garage insurance is not being purchased.

It's possible to ask why you'd ever require insurance for your garage liability even if you don't have an actual garage. However, it could come in useful even if you do not have an existing garage.

Garage liability may help you pay the legal costs you're obliged to cover if the services you provide or the day-to-day activities of your business result in bodily harm as well as property harm. For instance, if, for example, you offer roadside assistance, and need to change tires garage liability could cover the cost of the tire you changed being removed from the vehicle and leading the driver to get involved in an accident.

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6. You think about whether your insurance policy for autos policy will be able to cover the costs of damage to your truck.

The auto liability policy only will cover your legal obligation towards the driver who is at fault in the event that you're responsible for an accident. It may cover medical expenses for the other driver as well as be used to pay for repairs or replacement of their vehicle. However, it won't help to replace or repair your tow truck.

You'll require Physical damage insurance in order to safeguard your business from financial loss in the event that your tow vehicle is damaged. Physical damage insurance consists of comprehensive and collision coverage. Collision coverage is able to fix or replace your truck in the event of an accident or collision with an object. Comprehensive coverage will protect your vehicle if it is damaged due to something other than an accident, for example, fire, vandalism, and falling or falling items (like tree branches.) Also, it can cover the theft of your vehicle.

In simple terms, the auto liability insurance you have will not cover your vehicle and you might be interested in physical damage coverage when purchasing insurance for your tow truck. (You are able to request estimates of physical damage coverage and talk to our expert tow truck insurance specialists to ensure that you've got the protection you require.)

7. Utilizing your earnings to calculate the repo percentage.

If your company handles regular tows and repossessions agents will likely inquire about what percentage of the repo you are. It is necessary to calculate this percentage based on the number of jobs you perform instead of the revenue you earn from each kind of job. Insurance firms use their number of employees to calculate repo percentages as repos generally cost greater than standard tows. It is not a precise way to figure out what proportion in your job is repo.

To provide a simple example To give a quick example tows in a single month and 15 of them were repos then your repo ratio is around 21 percent.

It's crucial to figure this out correctly when purchasing tow truck insurance as the amount of repo work that you complete influences the price of insurance you purchase for any repo-related business.

8. Do not shop for insurance.

It is possible to save on policy for towing trucks by comparing and getting several estimates. It's crucial to compare the coverages and prices. Sure, you may like to cover your insurance by choosing the first insurance company you receive an affordable quote from however, by taking more time to compare you could save some cash. It is possible to find the exact protection for a lesser cost.

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