Everything You Need To Know About Tow Truck Insurance

(Last Updated On: October 30, 2023)

Tow truck insurance

We understand that every automobile owner needs some kind of insurance to feel secure and protected. This not only gives you peace of mind but also helps keep the economy running smoothly. With so many different types of automotive insurance out there, you can find the one that’s just right for your specific needs and situation.

One type of insurance that’s really popular and in high demand is tow truck insurance. Many tow truck companies decide to get commercial insurance coverage to avoid unexpected financial problems in the future. This insurance gives them the financial protection they need and the confidence to keep their business moving forward while their trucks are out on the road.

We’ve researched this topic extensively to provide you with the most accurate and helpful information, so you can make informed decisions about your tow truck insurance needs.

Tow Trucking Automobiles Vs. Regular Vehicles

The primary purpose of a commercial vehicle is to transport people or goods from one place to another. However, tow trucking companies have a different focus. Instead of moving items or people, they specialize in transporting other vehicles.

These connected vehicles may further carry goods or passengers. This is why it is evident that as the working of a tow truck differs from the regular vehicles, the risks it is vulnerable to are also unique. Though the ELD devices help avoid accident risks, the chances of a mishap are still there!

This is why opting for a reliable insurance program for the tow truck is essential. With time, the insurance market is getting crowded with varied insurance programs offering numerous financial coverage facilities to businesses.

Insurance companies have started coming up with new and varied services that are reliable and trustworthy. For instance, many new tow truck insurance policies provide extensive incidental services. They include everything from vehicle storage to road repair services and from mechanic mechanical repairs to emergency services.

Understanding The Concept Of Tow Truck Insurance

Trucking companies must ensure that vehicles attached to their tow trucks, along with their contents, tow truck, and truck driver, are protected since tow trucks are responsible for transporting vehicles. Tow truck insurance not only covers the damages to the tow truck and any injuries sustained by the driver but also provides protection for the vehicle being towed. All passengers and items placed in the connected vehicle are fully covered under this insurance.

With the aid of a modern GPS tracker that helps pinpoint the accident site immediately and a well-crafted insurance policy that covers financial losses, a tow trucking business can flourish seamlessly. By staying informed and adopting the appropriate insurance policies, tow truck operators can mitigate the risks associated with their industry and ensure their business’s long-term success.

It’s quite crucial for tow truck businesses to understand the differences between their operations and those of typical commercial vehicles. By doing so, they can select the most appropriate insurance coverage to protect their assets, drivers, and the vehicles they transport. With the right combination of technology, such as GPS trackers and ELDs, and comprehensive insurance policies, tow truck companies can navigate the challenges of their industry and achieve lasting success.

Reasons To Go For Tow Trucking Insurance

Accidents and mishaps can occur anytime, even if the driver uses a state-of-the-art dash camera for driving assistance. A minimum liability policy, known as tow truck liability, is a must for all tow truck companies. It helps them cover all the industry-related insurance points and additional provisions. 

Filling out the questionnaire on our website will get you personalized quotes for various aspects of your towing business, from ELDs and dashcams to insurance! 

1. Commercial Insurance Covers Automotive Liability

This kind of liability-related insurance policy aids in covering all kinds of financial losses directly connected to road accidents. Whenever an employee operates a vehicle that a company owns, the losses caused by an unfortunate accident are covered by this insurance. 

Any vehicle the business owns and uses for commercial purposes comes in this category. If the business’s cars are involved in an accident, it is protected from financial liability. Alongside this, it offers compensation to all the people who have been injured in the accident. Not only this, the commercial insurance would pay for the property damage caused to the vehicle when the driver is at fault! 

2. Coverage For Physical Damage

Every damage that has occurred to the commercial vehicle of the business is compensated in this kind of insurance. It secures the insured party in various situations, such as vandalism, theft, collision, and even fire. 

tow truck accident
image via Springfield News Sun

You could opt for any insurance sub-category in this regard, which will cover you immensely. For instance, if you opt for collision insurance, your business will get coverage for the damage caused by a collision with another vehicle.

Comparatively, opting for a comprehensive policy leads to covering your business wider. A CAC insurance would cover you from all kinds of theft and vandalism losses collectively. 

3. Insurance Protects The Garagekeepers

If a tow truck business keeps some automobiles stored in the garage, any loss that occurred to the vehicles is covered by this insurance plan. You could opt for the primary garage keeper policy, which protects and compensates for everything, whether you have a legal obligation to pay for it or not! This includes instances of theft and losses caused by extreme weather conditions. 

If you opt for the legal liability policy, it will compensate for only those damages that occur owing to the insured’s negligence. Hence, it brings forward some legal responsibilities. Apart from this, there is a direct excess policy, which covers a loss out of the limits compared to the customer’s policy. Hence, the payment is made beyond the assessed liability.

4. Protection Against Uninsured and Underinsured Motorists

Tow truck insurance can also provide coverage against uninsured and underinsured motorists. In case your tow truck is involved in an accident with a driver who lacks adequate insurance, your tow truck insurance can help cover the costs of repairs and medical expenses.

5. On-Hook Towing Insurance

tow truck accident 2
image via abc11

This type of insurance covers the vehicle being towed by your tow truck. It ensures that if any damage occurs to the client’s vehicle while it’s hooked to your tow truck, your insurance will help cover the repair costs.

By considering these reasons and understanding the various types of insurance available for tow truck businesses, you can make an informed decision about the coverage that best suits your needs. Protecting your assets, employees, and clients should be a top priority in the tow trucking industry, and the right insurance policy can offer you the peace of mind you need.

The Cost of Tow Truck Insurance

The cost of tow truck insurance depends on the policy you opt for. Several options are available, and you can either go for extensive or basic coverage. According to your choice, it could cost either around $450 per month or more in case of added coverage. The fee you may need to pay for the insurance varies. It also depends on the company you are getting the services from. The more extensive you go for the coverage, the more you will have to pay each month!

Coverage Options

When selecting tow truck insurance, it’s essential to consider the various coverage options available. These can include automotive liability, physical damage coverage, garage keepers insurance, and protection against uninsured and underinsured motorists. Each type of coverage offers different levels of protection and can be tailored to your specific needs and budget.

Choosing the Right Insurance Provider

It’s essential to research and compare different insurance providers to find the best coverage and rates for your tow truck business. Look for a provider with a solid reputation, excellent customer service, and competitive pricing. Be sure to ask for quotes from multiple providers and review the terms and conditions of each policy before making a decision.

ELD Technology for Your Business

In addition to finding the right tow truck insurance, it’s crucial to invest in Electronic Logging Device (ELD) technology for your business. ELDs can help improve safety, efficiency, and compliance with federal regulations. Take a few moments to fill out our questionnaire, and we will help you find the best ELD technology for your needs.

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Conclusion: Securing Your Tow Truck Business

In conclusion, tow truck insurance is an essential investment for anyone operating a tow truck business. It provides vital financial protection and peace of mind for business owners, drivers, and clients.

By understanding the various coverage options, costs, and factors to consider when choosing an insurance provider, you can make an informed decision and secure your tow truck business’s future. Don’t forget to explore ELD technology as well, as it can further enhance your business’s safety and efficiency.

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About the author

Laraib Shah

Laraib Shah

With a keen interest in the trucking industry, Laraib has dedicated years to understanding and writing about fleet management solutions. As a freelance writer, her insights are backed by hands-on experiences and meticulous industry research. She loves sharing her knowledge with the readers of Elddevices.net. When she's not writing about trucking, she enjoys connecting with her fellow fleet managers and truckers.

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Your email address will not be published. Required fields are marked *

Share what you learned!

About the author

Laraib Shah

Laraib Shah

With a keen interest in the trucking industry, Laraib has dedicated years to understanding and writing about fleet management solutions. As a freelance writer, her insights are backed by hands-on experiences and meticulous industry research. She loves sharing her knowledge with the readers of Elddevices.net. When she's not writing about trucking, she enjoys connecting with her fellow fleet managers and truckers.

Leave a Reply

Your email address will not be published. Required fields are marked *

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