It needs more than a collection of dependable vehicles and drivers to run a successful tow truck company. Being well-versed in insurance regulations is an integral part of it. Knowing the ins and outs of the tow truck insurance sector is crucial whether you’re a seasoned practitioner or just starting.
No company owner wants to face the possibility of closure, fines, or penalties for their establishment. You may prepare your company for the challenges of the tow truck industry by familiarizing yourself with the sector’s insurance regulations.
What is Tow Truck Insurance?
Commercial truck insurance policies are available, and one option is to get tow truck insurance, sometimes called wrecker insurance. This policy will protect your towing trucks in the event of an accident, fire, theft, or vandalism. In addition to covering medical expenses, uninsured/underinsured drivers, and third-party physical injuries and property losses, towing companies may safeguard themselves with tow truck insurance coverage.
General liability, commercial property, workers’ compensation, and bobtail insurance are other policies towing firms should have in addition to their tow truck company insurance. It is wise to include business hazard insurance in your policy if you reside in a region prone to natural catastrophes or catastrophic occurrences.
Requirements for Tow Truck Insurance
Auto liability insurance is required by federal law in the United States for all tow truck drivers, and certain states also require medical payment coverage. Purchasing workers’ compensation insurance to pay for injuries sustained on the job is wise for any tow trucking company that employs people.
Why Is Commercial Insurance Important For Tow Truck Businesses?
Tow trucks and other business vehicles are almost always required by law to have commercial car insurance. Towing companies with employees may also be compelled by state law to obtain workers’ compensation insurance. However, this varies by state.
Garage liability insurance is necessary for any towing company that keeps or repairs clients’ automobiles. Garage liability insurance will protect you if a covered accident occurs while your company operates, such as a client sliding and hurting themselves. It is a kind of general liability insurance. Business owners must get public liability insurance to meet client contract or lease requirements.
Also Read: Getting Insurance Same Day As Accident: Everything You Need to Know
Having on-hook towing insurance or garage keepers insurance could be beneficial for your towing garage as well. It safeguards your company if a towed vehicle is damaged or stolen while in your custody.
Commercial insurance makes good financial sense regardless of whether mandated or not. It helps cover unforeseen expenses that might hurt your towing company, such as costly repairs, medical bills, or legal fees.
What are the Coverages of Tow Truck Insurance?
Physical damage
Protect your tow truck financially in the event of an accident. Get the coverage you need to fix your tow truck with wrecker insurance. Your car will be protected from fire, theft, natural catastrophe, or vandalism.
If your tow truck is involved in an accident with a driver without insurance or inadequate coverage, the towing company’s insurance will cover the additional charges.
Garkeeper’spers general liability
Your client’s car is protected in the event of a fire, theft, vandalism, or accident as long as it is parked or kept at your garage or service station.
On-hook towing
This policy safeguards you so that a vehicle sustains damage while being towed. Damages caused by the accident, fire, theft, or vandalism will be covered, together with repair or replacement expenses.
Medical payments
As a standard service, tow truck drivers would frequently give the car owners a ride. The insurance policy will cover the medical expenses incurred by you, your driver, or any passenger in your tow truck.
Hired auto general liability coverage
Your rented, leased, or borrowed automobiles might be better protected with hired car coverage. This category includes cars driven by you or your workers for company business but not included in your insurance.
Hired auto physical damage
This tow truck insurance covers physical damage to rented or leased automobiles. If you or an employee are involved in an accident while driving a company car, this insurance will pay for the repairs.
Employer’s non-ownership general liability
This will safeguard you if an accident causes damage to a private car that is utilized for commercial reasons.
How Much Is Tow Truck Insurance?
In 2020, Progressive’s tow truck insurance was estimated to cost an average of $448 monthly. It would be best if you didn’t assume that number represents your insurance premiums, but it might be a good starting point.
Why? Tow truck insurance premiums are subjective and based on factors such as the insured’s geographic area, driving record, and the nature of the towing service provided. An additional component of your yearly payment is the coverage and restrictions that you choose.
Also Read: Does Your Business Need Box Truck Insurance?
You may save money if you pay your nsurance payment yearly rather than monthly, increase your deductible, or combine it with other company or personal policies.
Best Tow Truck Insurance Companies
Finding an insurance company to cover your tow truck is easy since the market is flooded with providers. Still, you have to narrow down the options. Select an insurer that offers flexible plans to meet your specific coverage requirements. Here are the top providers to consider when looking for tow truck insurance. By reading on, discover each option’s benefits, drawbacks, and costs for general liability insurance with a $1 million policy limit!
Fred Loya Wrecker Insurance
In 1974, El Paso, TX, was the site of the founding of the Fred Loya Insurance Company. Loya is a newer insurance provider, but they provide specialized tow vehicle insurance that protects you against tow truck physical damage, third-party liability, and collisions.
The firm has been the target of consumer complaints and litigation. Compared to other insurers of its size, Fred Loya receives 400% more customer complaints. Beyond that, it lacks a digital interface and an app allowing customers to apply for insurance from the comfort of their homes.
Loya is currently only offered in 726 sites across 11 U.S. states. Most congregate in and around San Antonio, Los Angeles, and Las Vegas. In addition, you may pay online, but you won’t be able to get quotations that way. Customers who want to purchase insurance or submit claims must do so with local insurance brokers.
Geico Tow Truck Insurance
You should ensure your towing company with G Rico if you want a service that will assist you if the tow truck breaks down. The Geico mobile app makes it easy for customers to get the emergency road assistance coverage that is part of their semi-truck towing insurance.
One advantage of utilizing the Geico app is that help can be requested in only two minutes. The app also has a service tracker that lets you know when help is coming and a G.P.S. locator that allows the firm to locate your precise position. Assistance solutions are accessible 24/7.
Towing to the closest service facility, changing tires, locksmith services (up to $100), petrol delivery, and battery jump starts are all covered under Geico’s road service insurance.
U.S.A.A. Tow Truck Insurance
Look no further than the U.S.A.A. for commercial vehicle insurance if you are a military serviceman or veteran running a tow truck company. The company’s insurance policies adequately cover vehicles such as personal automobiles, buses, trailers, luxury vehicles, lorries, etc., in the event of third-party liability or physical damage.
The company’s long history in the insurance industry dates back to 1922. Professional, independent insurance agents are part of its network, and they can assist you in identifying and mitigating any risks particular to your company.
Towing your disabled tow truck, helping you get a flat tire fixed, getting your car to the closest repair shop, getting a dead battery started, and unlocking your vehicle if you lose the key or lock it inside are all covered by U.S.A.A.’s roadside assistance policy.
Allstate Tow Truck Insurance
Tow truck coverage from Allstate is among the best in the industry. The business has expanded from 1ngs in Illinois to provide coverage throughout the United States.
Allstate wrecker insurance offers coverage options, including liability (injuries and property damage), collision, comprehensive (fire, vandalism, hail, etc.), and underinsured/uninsured drivers.
Allstate Insurance also manages the Allstate Advantage program. It connects customers with local agents who are well-versed in insurance and can evaluate their specific risks, provide a plan that fits their needs, and make any necessary adjustments.
You may get roadside help from Allstate, Geico, and State Farm anytime, day or night. This coverage provides round-the-clock access to rapid roadside assistance.
CoverWallet Tow Truck Insurance
CoverWallet offers tow truck owners a variety of insurance policies, including business auto, property damage, liability, rental car, and uninsured/underinsured drivers. Collaborate with CoverWallet since there are no penalties for insurance cancellations. In addition, the business’s website and mobile app make it easy to pay for insurance and get evidence of coverage digitally.
Final Note
The coverage options offered by one tow truck company may not be suitable for another. But tow truck coverage is something any company that offers professional towing services should think about getting. Accidents involving tow trucks may happen to even the most seasoned drivers at any moment, putting businesses at risk of significant financial damages. Any company that owns or runs tow trucks, whether flatbed, hook and chain or wheel-lift vehicles, may benefit from towing insurance.
