Tow Truck Insurance

Like any other truck driver, tow truck operators provide a precious service to their community. They are beacons of light and hope during times when drivers think they will never get on their way again. For as much time they spend on the road helping people, they need to be adequately covered with tow truck insurance.

Tow truck insurance protects your business and drivers in the event of an accident while on the job. It is an essential piece of commercial insurance to have. This guide can help you decide what truck coverages you need and how to budget for such a purchase.

What is Tow Truck Insurance?

Tow truck insurance is a specialized auto insurance policy that covers your tow truck(s) and business. It gives you and your employee liability insurance and other policy add-on options like collision and comprehensive coverage.

It also has towing-industry-specific coverage like on-hook insurance that can provide better protection for your business operations and the vehicles in your care. Personal auto insurance cannot provide you with this type of coverage.

Why do towing businesses need insurance?

Yes, If you own a towing business or offer towing services in any capacity. Auto insurance for towing operations is essential and provides vital coverage to both you and your employees. Every vehicle on the road needs some auto coverage.

Towing insurance will protect your business from liability, along with paying for repairs following an accident. Without it, you will be expected to pay out of pocket. One accident may be enough to wipe out your business assets completely. You do not want to leave yourself or your employees vulnerable on the road.

Types of Businesses That Need Tow Truck Insurance

Any business that owns or regularly utilizes tow trucks to conduct business needs towing insurance. Common examples of companies that rely on tow trucks include:

• Roadside assistance
• Auto body shops
• Mechanic repair shops
• Auto salvage businesses
• Auto club contractors

Even if your industry is not listed above, but you use tow trucks regularly, you need tow truck coverage. Without the proper and specialized coverage from a trusted insurance company, you leave yourself and your business financially vulnerable to noncompliance with state insurance laws and licensing.

Customized Insurance for your Towing and Storage Business

With Tow Truck Insurance being a type of commercial auto insurance, an insurance policy includes coverages you may encounter in various other plans.

These coverages will help to protect you, your business, and any drivers you have hired. You never want to be caught driving without these essential insurances that tow-truck companies need.

Tow truck commercial insurance policies will cover the following:

Liability Insurance

Liability coverage will pay for property damage and bodily injuries that you cause to another driver in an accident. It will only cover their damage and bodily injury, never your own. Liability insurance can also help with legal fees should the other driver sue you.

Property Damage

Property damage insurance includes collision and comprehensive coverage. Collision insurance coverage will pay for damage to your vehicle following an accident. Comprehensive coverage pays for damage your vehicle sustains in a non-collision-related incident, like theft or vandalism.

Medical Payments

This type of insurance will pay for your and any passenger’s health and medical expenses accumulated following a trucking accident. It pays out no matter who was at fault for the collision.

Uninsured and Underinsured Motorist Coverage

Despite mandatory auto insurance in nearly every state, some motorists drive without it. Suppose you are caught up in an accident with such a driver. In that case, uninsured-underinsured motorist coverage can help insure you for damage and injuries due to the accident.

Additional Towing Insurance For Your Business

The main reason for purchasing a business insurance policy is for the specialized coverages the insurance companies provide. Tow trucking insurance comes with a number of types of insurance that can help protect tow trucks specifically.

Some additional coverages on the market your towing business should have include:

Hired & Non-Owned Liability

This type of insurance provides coverage for employees who use their vehicle or motor truck for the job or utilize trucks the business rents. It will help pay for liability if either truck gets into an accident while conducting business.

On-Hook Towing Insurance

This insurance coverage is designed specifically for tow companies. On-hook insurance will pay for repairs or replacement to vehicles you tow if they are damaged in transit by any hazards. Hence the “on-hook” part in the title. It usually covers damage caused by collision, fire, and theft. But remember that it will not protect the property inside the towed vehicle.

Garagekeepers Legal Liability Coverage

Garagekeepers legal liability insurance is an add-on insurance policy that protects the business from damage and theft to a towed vehicle stored in your garage. This type of vehicle insurance covers repair expenses and replacement costs.

Cargo Coverage

Cargo insurance is vital to keeping items in a towed vehicle safe. This type of property insurance will provide coverage if items in your customer’s car are damaged or stolen while under your care.

Workers Compensation

This is especially important to keep your employees safe. Suppose something happens while they are on the job. In that case, workers' compensation will pay for medical expenses and provide them with a reduced salary while they are recovering. This can be an essential part of the employee benefits you provide to your workers.

How much does towing insurance cost?

The most recent national average price for tow truck insurance was around $4,500 annually. That price is about $375 per month for coverage.

However, like any other type of business insurance, what you pay can easily be above or below this baseline. Understanding that there are several factors that insurance companies take into consideration when establishing your premiums. Both you and your business will come into consideration for any commercial truck insurance.

Some variables that will affect your tow truck coverage rates include:

• Location - Where your business operates will impact your rates. Your rates will be higher if your commercial truck services cities rather than suburban areas.
• Usage - How often you tow and the type of cars you tow will determine your rates. Provide 24-hour towing and frequently are in charge of very expensive cars. Your premiums are going to be significantly high.
• Driving records - Both you and your employees will have their driving records examined. Your rates will be higher if they find a long history of accidents and claims. It’s a good practice only to hire people with good driving records.
• Source of income - If your company’s sole purpose is to tow cars, your rates will be higher than those of another company that occasionally does.
• The number of tow trucks - How many tow trucks you have and their safety features will determine your rates. The more trucks your tow truck company has, the more you will pay.
• Experience - Being new to the tow truck industry will raise your rates. You have less experience, so insurers need to know how you will act on the road. They have no choice but to prepare for the worst.

Tow Trucking Insurance vs. Personal Auto Insurance

You cannot add your tow truck to your existing auto insurance policy. While it may seem like you can get the same types of coverage with a personal car insurance policy, tow truck insurance has a variety of truck-specific coverages necessary to run your towing and storage business successfully.

Your tow truck generates income, meaning a personal policy will need help providing the proper assistance you need following an accident. Commercial tow truck insurance policies also offer higher coverage limits, which personal insurance cannot do.

Get a Tow Truck Insurance Quote

Are you looking for a towing insurance policy? Contact us today for a free and to save money on your policy. Our insurance agents are standing by to answer any questions you may have about our business insurance products.

Make sure you let us know your zip code, details of your business, and information on your tow truck(s). By providing us with all this, we can better understand the coverage you need.

Quotes are available either at one of our many locations or online in just a few clicks via our website. We are also just one call away. Get your tow trucks insured today and drive worry-free tomorrow.

Insurance for your Tow Trucks is only a click or phone call away!

Get a personalized Tow Truck Insurance Quote Online or by phone

Tow Truck Insurance may only be available in some states; please call an insurance agent for more information. *