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Tow Truck Insurance

01 Oct

If you are a tow truck driver, you understand how important it is to find the right trucker insurance. You want affordable rates, but you also don’t want to be left liable for unforeseen expenses in the event of an accident. Maximizing your protection while minimizing your premiums is your overall goal. When you are towing a customer’s car, you are legally liable for any damages that happen while it is in your custody. For example, if you damage a vehicle while hooking it to your tow truck or if you are involved in an accident while towing another vehicle, you will be responsible for the expenses. This is why the right towing truck insurance is important for any towing business. There are specialty insurance companies that only offer tow truck insurance, while many national auto insurance companies provide towing truck insurance as part of their product array.

Types of coverage

In addition to standard insurance, there is general liability insurance and on hook insurance, as well as legal and property coverage for garage keepers. Business auto insurance protects your towing business in case there is an accident, injury, theft, or other damages involving your tow trucks and employees. Garage keepers insurance provides legal liability insurance protection to the towing business for any damage to your customers’ vehicles while they are in your custody. Business liability offers insurance coverage in case of a general liability loss, including property damage or injury. It insures your towing business for liabilities that occur during your business’s daily operations. Finally, on hook or cargo insurance covers any lawful goods or articles accepted by the insured, while in transit or in the process of recovery. You can also obtain coverage for damages during loading and unloading.

Special needs for repossessions

If you are also involved in vehicle repossessions, you have additional concerns. Some of the coverage you may want to investigate includes wrongful repossession, personal injury, invasion of privacy, breach of peace, drive-away exposure, and workers compensation, to name just a few. These additional coverages will increase your premiums, but they are necessary in the event of a claim against you. Be sure to discuss any repossession activities with your agent, because some companies do not provide coverage to businesses who earn more than a certain percentage of their income from vehicle repossessions.

Deductibles and limits

For any of these types of coverages, you will need to select both deductible and the limits. Deductibles are the amount you must pay before commercial tow truck insurance coverage begins, while limits are the maximum total amounts paid per incident. Limits apply to damage on all vehicles, including your tow truck. Tow trucks are expensive vehicles to replace, so make sure you have enough coverage. You don’t want your business to suffer because you can’t afford to replace a damaged tow truck. Higher deductibles and lower limits will result in lower premiums, but they also leave you more exposed to out-of-pocket expenses in the event of a claim. Also keep in mind that each state has its own requirements regarding minimum limits, so make sure that your policy at least meets these minimums.

Variables the insurance company will consider

When you are shopping for trucking insurance, be prepared to answer several questions so the company can provide an accurate quote. Factors under consideration include how many tow trucks and operators will be covered, whether you operate in more than one state, percentage of repossession business, whether you are a full-time or part-time towing operation, and any past claims. They may also be concerned with driving records of any employees, so have this information readily available as well. You will need the VIN numbers of all vehicles, as well as any add-on equipment.