by Ed Sneneh, Agent for Chicago Tow Trucking Insurance , Illinois

Two truck insurance quotes are characterized with their high numbers both on the coverage amounts and premium amounts. They are also little complex to understand by the average consumer. The following explains the main components of tow truck insurance quotes,  auto insurance split coverage, and the advantages and  disadvantage of split coverage.

Tow Truck Insurance Quotes. The main components of tow truck insurance quotes are:
tow truck insurance Chicago Illinois
1. Auto Liability. The minimum required limited vary based on truck weight and state of operations. Most states require a minimum of $500,000 for most flatbed tow trucks. However if the tow trucking business requires any MC filing with the  Federal Motor Carrier Safety Administration (FMCSA) then the limit may be $750,000 on auto liability. This is perhaps the most expensive part of coverage. In Chicago tow truck insurance quotes business the rates is between $2,800 to $3,000 annually with smaller premium for suburban residents.
2.  Onhook Insurance Coverage (On Hook) or physical damage coverage This is comprehensive and collision on towed vehicles while on hook. If the towed vehicle is off hook there is no coverage here. This is another name for Garagekeepers liability. Off hook coverage, if it is on the policy, will cover towed vehicles while they are of hook. This is not an expensive coverage. In Chicago on hook coverage costs about $250, more or less, for $25,000 on hook coverage.
3. Garage Liability, is liability arising from using  customers vehicles. This includes premises liability too. This coverage, too, is not an expensive coverage. In Chicago garage liability runs about $300 annually for limits similar to the auto liability above.
4. Physical Damage, or comprehensive and collision coverage on own towing trucks. This coverage costs about 2.5% to 4.5% of the value of the truck, plus or minus. For a newer tow truck with a value of $70,000  comprehensive and collision may run between $1,750 to $3,150, or about $1,400 difference.
 
Split Coverage is a method that is used to either minimize costs or get more suitable deal.  The above coverages can be divided between 2 or more companies based on the preference of companies and premiums details. Hence trucking insurance rates and quality of insurance can be maximized.
 
A serious problem of split coverage insurance in the trucking business occurs when there is a claim, where the claim needs to be shared by two companies. In cases like that insurance companies may blame each others for the delay in processing the claim.
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