A Guide to Tow Truck Insurance
If you own and operate a commercial tow truck business, or a business with a towing service, protect your investment with a commercial tow truck insurance policy.
Most accidents will require a suite of insurance coverage to protect you and your business. Licensed agents with tow truck insurance companies will help you dial in your coverage, but know going in that you need Liability, Medical Payments, Physical Damage and Uninsured Motorist Insurance policies.
Liability Insurance: Bodily Injury and Property Damage
If you’re determined to be at fault in an accident, commercial tow truck Liability insurance will cover damages and injuries to others. Costs covered by Bodily Injury Liability insurance include hospital and medical bills, rehabilitation cost, nursing care, funeral expenses, lost earnings, pain and suffering and other damages and legal defense. Property Damage Liability coverage is the second element of Liability insurance. As the name implies, it covers damage you cause to the property of others – vehicles, homes – as well as any legal representation costs you incur in the event of a lawsuit.
Medical Payments Insurance
Injuries to yourself or any passengers in your tow truck will require Medical Payments Insurance if you want to avoid or reduce out-of-pocket expenses. Medical bills for you and your passengers are covered by this commercial tow truck insurance policy.
Physical Damager Coverage
Physical Damage Coverage most often consists of Collision Insurance, Comprehensive Insurance, and Fire and Theft with Combined Additional Coverage (CAC) insurance. Together these will pay for damage to your tow truck, whether it’s caused by an auto accident or Mother Nature.
Uninsured Motorist Insurance
It’s an unfortunate reality that there are uninsured drivers on the road. That’s why you need Uninsured Motorist Insurance. If one of those uninsured drivers hits you, or you’re involved in a hit-and-run, an Uninsured Motorist Insurance policy will pay for injuries and damages to you and passenger as well as your car. Uninsured motorist insurance options for commercial tow trucks include Uninsured Motorist Insurance (UM), Underinsured Motorist Insurance (UIM), and Uninsured Motorist Property Damage Insurance (UMPD). Coverage varies significantly by state, so an agent will find commercial tow truck insurance that conforms to your state’s regulations.
Garage Keepers and On-Hook Towing Insurance
Because you’re responsible for a customer’s car when it’s in your possession – whether at your shop or garage or while you’re towing them -- consider including two types of coverage that are specific to the commercial tow truck industry: Garage Keepers Legal Liability insurance and On-Hook Towing insurance.
Commercial tow truck insurance is a must-have business investment for towing, auto body, auto mechanical, roadside service, and auto salvage/hauling businesses. Why? Because you’re responsible for a customer’s car while it’s in your possession. Taking time to carefully research tow truck insurance companies online can help you find the right coverage while minimizing tow truck insurance cost.
