Tow Truck Insurance: What It Is, How to Get It

Working a tow truck is an inherently dangerous job, with drivers typically working on busy roads and in inclement climate, hauling automobiles that weigh a ton or extra.

Given these hazards, having the precise tow truck insurance coverage is crucial to make sure your online business is protected against lawsuits and harm to not solely your truck however these you tow or could encounter on the highway.

Tow truck insurance coverage usually refers to business truck insurance coverage with specialised protection to protect in opposition to harm to automobiles you tow, whether or not they’re in your truck or saved at your service station.

Homeowners of a towing enterprise typically want different non-truck-related enterprise insurance coverage as effectively, comparable to basic legal responsibility insurance coverage, staff’ compensation insurance coverage and business property insurance coverage.

Listed here are the frequent forms of tow truck insurance coverage and what they cowl:

• Auto legal responsibility insurance coverage: Pays bills associated to bodily damage or property harm in case you are at fault in an accident. It additionally covers authorized protection prices in case you are sued attributable to your involvement in an accident.

• Collision insurance coverage: Pays to restore or change your tow truck whether it is broken in an accident.

• Complete protection: Pays to restore or change your tow truck if it’s broken in an incident that’s not a collision, comparable to hearth, theft, falling objects or animal harm.

• Medical funds protection: Pays medical bills for your self and any passengers injured in an accident, together with prospects who journey alongside whereas their automobile is towed.

• On-hook protection: (Additionally referred to as storage keepers authorized legal responsibility insurance coverage in Texas and Virginia.) Pays to restore or change a automobile that’s broken whereas hooked as much as your tow truck.

• Storage keepers authorized legal responsibility insurance coverage: (Additionally referred to as storage location insurance coverage in Texas and Virginia.) Covers harm to a automobile whereas it’s being saved or serviced by your organization.

• Uninsured motorist insurance coverage: Pays for prices related to any damage to you or your passenger brought on by a driver who doesn’t have insurance coverage or throughout a hit-and-run incident.

Federal regulation requires all tow truck drivers to have auto legal responsibility insurance coverage, although limits on minimal protection range from state to state. Some states additionally mandate medical funds protection.

In case you have workers, financial institution on getting staff’ compensation insurance coverage, which covers medical bills for on-the-job accidents and shields your online business from expensive lawsuits. Employees’ comp is required in most states when you’ve got a number of workers.

Progressive reported a mean month-to-month value of $448 in 2020 for its tow truck insurance coverage. That determine can function a benchmark however gained’t essentially replicate your insurance coverage prices.

Why? As a result of the price of tow truck insurance coverage relies on your location, driving historical past and the kind of towing you do. The protection and limits you choose may even issue into your annual premium.

It can save you cash on tow truck insurance coverage by paying your annual premium in full as an alternative of month-to-month, choosing the next deductible or bundling your protection with private auto insurance coverage or different forms of enterprise insurance coverage.

Progressive is a go-to supplier for business trucking firms and presents a full vary of protection choices for towing companies. Enterprise house owners can get a quote on-line or by telephone. Progressive carries a superior (A+) score from AM Finest.

Geico presents towing insurance coverage for single automobiles and fleets. Quotes can be found by telephone and claims could be managed on-line by Geico’s web site and the cellular app. As well as, enterprise house owners can bundle tow truck insurance coverage with different enterprise insurance coverage or private auto insurance coverage. Geico carries a superior (A++) score from AM Finest.