Tow truck insurance was created to protect the many business risks that towing companies face every day.
Towing companies are businesses that offer services, roadside repairs, or assistance for disabled cars. This could include police and state authority work as well as repossessions.
Tow truck insurance may also be available to cover vehicles you have in your possession at a facility or parking lot that you own or rent.
Towing companies need to be protected by a variety of insurance policies.
Tow Truck Insurance
Tow truck businesses make money by towing disabled cars, providing roadside assistance, and storing them in their own parking lots or rental spaces.
If this is what you want, you will need to have a tailored tow truck insurance policy.
These are just a few examples, but there are many other types of towing operations that may need to have commercial tow truck insurance.
- Providers of roadside assistance
- Auto club contractors
- Rotational towing
- Auto body shops
- Repair of auto mechanical parts
- Stations with full service
Tow truck insurance covers the unique set of exposures specific to towing operations. It's important that you have coverage that is tailored to your needs.
Towing and Storage Protection
Towing insurance covers more than just a wrecker truck or rollback truck.
These insurance policies are often offered to tow truck companies:
Garagekeepers Legal Insurance - Covers the vehicles of your customers while they are parked on your property.
Insurance for On-Hook Towing - Provides protection to your customer's vehicles when you are towing them.
General liability insurance - Covers you if you are legally liable for bodily injury or property damage, as well as personal injury, that is not directly related to your vehicles.
When storing vehicles, the most important thing to protect against is Care, Custody, and Control. You have unique obligations to protect property belonging to others when you are responsible for their care, custody, or control.
Also, check- What does semi truck insurance cost on average?
Tow truck insurance coverage
This is a list of tow truck insurance coverages you should consider for your towing operation.
Liability insurance -- This covers injuries you cause other people or damage to their property. It covers two types of third parties: Property damage liability and bodily injury liability.
Medical payments Insurance -- Covers medical expenses for you and your passengers in the event of an auto-related accident.
Personal Damage Coverage -- This covers repairs to your vehicle that are caused by an accident, such as a collision with another vehicle and/or a falling tree branch.
Uninsured motorist insurance -- Covers injuries to you and your passengers that are caused by drivers without adequate coverage or insurance.
Also, check- Why Tow Trucks Need On-hook Coverage
What is the cost of tow truck insurance?
The average US monthly cost of tow truck insurance through Progressive Insurance was $448 in 2020. This is an excellent stat, but it's not a guide to what you might end up paying.
Costs for tow truck insurance vary from one company to the next and from one insurance carrier to another.
The cost of insurance for tow trucks can be affected by many factors, including the type of towing you are doing and your driving record.
New data suggests that annual policies with primary liability and physical damages coverages, and drivers who have a clean driving record, could cost substantially less than the above-mentioned price.
No matter if you are looking for cheap tow insurance, or specialized coverage you need, one of our Rogue Risk licensed advisors can provide a tailored quote that suits your specific situation.
Understands the unique nuances that affect tow truck companies.
- What number of tow trucks are you currently using? What type?
- What services do you offer? Do you offer roadside service, auto-repairs, repossessions, salvage, impound, or rotation?
- Hours Of Operation: Are you open 24 hours a day or do you close at the end?
- Safety program: Have safety programs been implemented (which are often required by federal and state law for you or your employees)?
- Driver Qualification files are required by federal and state safety carrier regulations.
- Loss History: It is common to consider three to five years' worth of data when making calculations.
The Rub
Towing insurance is essential for any business that offers towing services or owns a towing company.
Towing truck insurance is not something you should do by yourself. Towing is an individual business with unique risks that requires a unique set of insurance coverages.
For, more details then visit us -
https://vocal.media/journal/10-things-every-new-owner-operator-should-know
https://bestinsuranceservicesblog.blogspot.com/2023/02/how-much-does-box-truck-insurance-cost.html
https://writeupcafe.com/what-is-commercial-truck-insurance/
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