Do I Need Tow Truck Insurance?
If you own a towing business—or offer towing services—Tow Truck Insurance is essential business insurance. Keep in mind, you need coverage for your flatbed and tow truck vehicles whether you own or lease them. Certain coverages protect you if damage is incurred to the tow vehicles or other vehicles in case of an accident. To explore what options you may want to include in your coverage, read our comprehensive guide below.
What Should Your General Liability Coverage Include?
A tow truck insurance policy—a type of commercial auto insurance—will normally include liability coverage for personal and property damage and personal injury protection. Your tow truck insurance policy will be standard commercial vehicle insurance coverage, perhaps including all or some of the following: Auto liability, auto physical damage, the value of the vehicle, comprehensive and collision, medical payments, and the like.
You want to make sure your tow truck insurance includes:
Bodily Injury Liability
If you are involved in an accident where other people are injured, this coverage will cover medical expenses for which you are found responsible. Not only does it help cover out-of-pocket expenses but also legal fees in case you or your business are sued. Coverage options with limits up to $1,000,000 are normally available.
Medical Payments Insurance
Payments for medical bills (because of injury to you or passengers) fall under this policy.
Property Damage Liability
This coverage is for damages to someone’s property for which you (or your employees) are found responsible. Coverage options with limits up to $1,000,000 are normally available.
Tow Truck Specialized Policies
In addition to general liability insurance, a knowledgeable agent will highly recommend these specialized policies unique to your industry:
On-Hook Towing Insurance:
This coverage was created specifically for towing companies. It will help pay for repair or replacement costs due to damages sustained to vehicles or watercraft you are towing—i.e. While they’re “on-hook”. It typically covers damage caused by accidents, fire, vandalism, and theft. However, it does not cover property inside towed vehicles.
Because on-hook towing does NOT include coverage for damage or theft of items inside vehicles being towed, you should consider adding cargo coverage to your policy.
Garage Keepers Legal Liability Insurance
Garage Keepers—or ‘Garagekeepers’—insurance protects the business in the event of damage to or theft of a vehicle while parked at your garage or lot. It would cover expenses to repair damage to customers' vehicles or replacement cost if beyond repair.
Uninsured Motorist Coverage
If your tow truck is in an accident where the other driver is uninsured—or underinsured—this will cover injury to you, employees, and passengers in your tow truck. It also covers you in the occurrence of a hit-and-run.
How to Locate a Tow Truck Insurance Agent
To assist you with choosing adequate tow truck insurance, locate an agent who understands the towing industry. Ideal agents are knowledgeable in local, state, and federal insurance requirements necessary for you to operate your towing business.
What Does Tow Truck Insurance Cost?
While rates are determined on a state-to-state basis and depend upon your specific locale—zip code, population density—your agent must also be familiar with other unique variables affecting towing insurance premiums, including:
- How many tow trucks do you own? What type?: This can include light single axle, medium and/or heavy-duty dual/triple axle, underlift wreckers, rollback carriers, and other types.
- Type of services you provide and the percentage of your business it represents: Do you offer roadside assistance, auto-repair, repossession, salvage, impound, rotation, etc.?
- Hours of operation: Do you provide 24-hour service or close at the end of a business day?
- What you tow: Do you tow vehicles only? Or do you include vehicles, motor homes & RVs, motorcycles, boats, trailers, or heavy equipment?
- Safety Program: Have you implemented safety programs (which are usually required by state and federal law for you and your employees)?
- Driver Qualification Files: Required by state and federal safety carrier regulations.
- Loss Run History: Usually three to five years worth is considered into calculations.
Get a FREE Quote Today
Coverage options for two truck insurance vary by company, so you need to make sure that you review these options carefully with your licensed insurance professional. We offer competitive insurance quotes and make the process fast and easy.
Simply complete the form above and one of our agents will contact you. Or, give us a call at 1-877-907-5267.
Related Articles: Garage Keepers Liability - Garage Liability Insurance - Commercial Auto Insurance