Tow Truck Insurance
As a tow truck operator, your business faces unique risks every day. From roadside breakdowns to vehicle recoveries, you need tow truck insurance that protects you, your truck, and your customers’ vehicles. Trucking Insurance Services has a vast network of insurance companies for commercial tow truck coverage. You can call 855-281-2924 or submit a request online for a free tow truck insurance quote.
Tow Truck vs Auto Hauling: Understanding the Difference
Before we get into insurance specifics, it’s important to understand the difference between tow truck coverage and auto haulers. While both transport vehicles, their operations and insurance needs differ significantly.
Tow trucks primarily provide roadside assistance and vehicle recovery services. They respond to breakdowns, accidents, and illegally parked vehicles, often operating in high-risk environments like busy highways or congested city streets. This work environment contributes to their unique insurance needs.
Auto haulers, on the other hand, usually transport multiple vehicles over long distances. They often work on pre-planned routes and schedules, moving cars from manufacturers to dealerships or between auction sites. While auto haulers face their own set of risks, they generally operate in more predictable conditions than tow trucks.
These operational differences significantly impact insurance requirements and costs. Tow truck insurance often needs to cover a broader range of scenarios compared to auto haulers.
Commercial Tow Truck Insurance Requirements
Now, let’s break down the essential components of a comprehensive tow truck insurance policy.
On-Hook coverage is unique for tow risks and covers damages to the auto in your possession. Most insurance companies offer two version of coverage, Direct Primary and Legal Liability. Our insurance agents recommend Direct Primary for more comprehensive coverage.
Direct Primary
On-Hook Direct Primary coverage is a towing-specific coverage that provides coverage for physical damage, also known as comprehensive and collision, for vehicles being towed and in the tow truck operator’s control and custody.
Legal Liability
On-Hook Legal Liability coverage is also towing-specific coverage that provides coverage for physical damage, but it is more narrow in scope than Direct Primary. Legal Liability only provides protection when found liable for damage and for transmission/transaxle damage.
Auto Liability (Bodily Injury and Property Damage)
The final required coverage is Auto Liability. Each state mandates a minimum amount of liability. This coverage pays out for bodily injury and property damage caused by the insured vehicle.
Additional Coverage Options
On-Hook and Auto Liability for the backbone of tow truck insurance policies, insurance companies offer additional coverage options to protect your business and equipment.
- Physical Damage Coverage: This protects your tow truck from damage due to collisions, theft, vandalism, or natural disasters. It typically includes:
- Collision Coverage: Pays for damage to your tow truck from accidents with other vehicles or objects.
- Comprehensive Coverage: Covers non-collision related damage, such as theft, fire, or weather-related incidents.
- Workers’ Compensation: If you have employees, workers’ compensation insurance is typically required by law. It covers medical expenses and lost wages for employees injured on the job.
- Umbrella Insurance: This provides extra liability protection beyond your standard policy limits, offering an additional layer of security for your business.
- Uninsured/Underinsured Motorist Coverage: This protects you if you’re in an accident with a driver who has insufficient or no insurance.
- Roadside Assistance Coverage: It’s funny to imagine a tow truck needing a tow, but it does happen! This can cover the costs of services you provide to stranded motorists, such as jump-starts, towing, or fuel delivery.
The specific combination of coverages you need will depend on your unique business operations, the types of vehicles you tow, and the risks you face in your area.
Ready To Get Started?
Choosing the right tow truck policy is a crucial step in protecting your business. With the right coverage, you can focus on serving your customers without worrying about potential financial setbacks from accidents or lawsuits.
Working with an experienced insurance agent who specializes in truck insurance is key to finding the right coverage at competitive rates. They can help you navigate the complexities of commercial tow truck insurance and tailor a policy to your specific needs.
Don’t leave your business vulnerable. Call us today at 855-281-2924 or request a quote online to explore your insurance options. Our team of experienced agents is ready to help you find the perfect coverage to keep your business rolling smoothly.
Frequently Asked Questions
How much is tow truck insurance per month?
Monthly tow truck insurance costs can vary widely, typically ranging from $800 to $1,800. The exact cost depends on factors such as coverage limits, location, claims history, and the type of towing operations you conduct.
What is the average tow truck insurance cost?
On an annual basis, tow truck insurance costs average between $8,000 to $15,000. However, costs can be higher or lower depending on your specific circumstances, including the value of your tow truck, your coverage limits, and your business’s risk profile.
Does insurance cover a tow truck?
Yes, commercial tow truck insurance covers various aspects of tow truck operations. This includes liability coverage for accidents, physical damage to your tow truck, coverage for vehicles being towed, and protection for customers’ vehicles in your care.
What are the best tow truck insurance companies?
Some of the top insurers for tow truck operations include Progressive, Berkshire Hathaway Homestate Companies, and Northland. However, the best company for you will depend on your specific needs, location, and the types of services you offer. It’s important to compare quotes from multiple insurers to find the best coverage at competitive rates.
Remember, investing in tow truck coverage is not just about meeting legal requirements—it’s about protecting the business you’ve worked hard to build. Don’t wait until it’s too late. Secure your insurance today and tow with confidence! Call us at 855-281-2924 for a free tow truck insurance quote.