Not all tow truck companies or owners operate in the same way, so what may be a necessary requirement for insurance coverage for one won’t necessarily be the same for others. This is why coverage purchased through a tow truck insurance program can be customized so that it allows you to receive a policy that will fit your specific business needs.
Since there’s many financial risks involved in operating a tow truck, far more than that of driving your personal vehicle, it’s extremely important to purchase the right policy to protect yourself and your business from these exposures. Most commercial auto insurance companies offer tow truck insurance, and insurance quotes are readily available online.
Types of coverage to consider
Liability insurance is required and includes bodily injury to help pay for costs related to injuries suffered by others from an accident you or an employee caused, and property damage in the event that you or your employees are the cause of an accident. Coverage will help pay for the repair or replacement of the other party’s damaged property as a result of the accident.
Collision coverage will help with costs to repair or replace your tow truck if it’s damaged due to a crash, while comprehensive will help with repairs and replacement of your tow truck if it is damaged in a variety of non-collision incidents, such as a fire or due to severe weather.
Most owners opt for uninsured/underinsured motorist to cover the costs if a driver who has no coverage at all hits you, or coverage with limits that are inadequate to cover all of your damages and any injuries. In addition, towing companies must also be concerned about the vehicles they wind up towing that were damaged in an accident.
Your tow truck insurance program should offer coverage for towed vehicles, either “On-Hook” towing insurance to help pay for damages to vehicles you are towing, or Garage Keepers Legal Liability insurance that will cover vehicles you are storing for your clients, or both. After you have received any quotes, you should work closely with your insurance agent to make sure you get a policy that best fits your needs.