Everything You Need To Know About Tow Truck Insurance

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(Last Updated On: September 2, 2022)

There is no denying the fact that every kind of automobile requires some sort of insurance. It adds to the owner’s security and provides a facility for a continuous flow of funds within the economy. 

Auto motive insurances are of several kinds. You can opt for any one of them, considering your own particular needs and requirements.

One of the most common and highly sought-after automotive insurances is tow trucking insurance. To avoid any unfortunate financial burden in the future, many tow truck companies opt for commercial insurance coverage. It gives them the desired level of financial shield and mental peace while their assets are out there on the roads.

Tow Trucking Automobiles Vs. Regular Vehicles

The basic concept of a commercial vehicle is to carry people or goods from one place to another. However, with the tow trucking companies, things are different. Rather than transporting items or people, they cater to the movement of 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 to appear 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 should ensure that vehicles hooked to their trucks and their contents, along with the tow truck and truck driver, are protected since tow trucks transport vehicles.

Tow truck insurance doesn’t only pay for the damages to the vehicle property and the injuries caused to it but also provides for the vehicle that is towed to it. All the passengers and items placed in the connected vehicle are fully covered under this insurance.

With the help of a modern GPS tracker that helps spot the accident site immediately and a well-crafted insurance policy that covers financial losses, a tow trucking business flourishes seamlessly. 

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 up the questionnaire on our website will give you a better idea regarding the tow trucking business operations, and you will let us know your opinion! 

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. 

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.

Why Go For Tow Truck Insurance?

Any automobile owner with an asset that strides on the road needs financial protection. It is a crucial policy for the trucking business as it covers them from financial losses caused to their trucks, drivers, and cargo moving from one place to another.

Opting for tow truck insurance is highly recommended if you have a tow truck business that transports vehicles and earns through it. 

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 $400 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!

Also, take a few moments out and fill out our questionnaire! We will help you find the best ELD technology for you. 

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About the author

Sophie

Sophie

Sophie is a freelance writer and a proud cat mom. She is passionate about the trucking industry and loves to share her experiences through writing. When she is not writing, she spends most of her time traveling. She is a lover of cookies, ice cream, and coffee.

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