Tow Truck Insurance

Tow trucks come in all shapes and sizes. They are normally used for a variety of purposes. For instance, some tow trucks are used to provide roadside assistance for clients. Others may be used to clear roads after collisions. These trucks can also be used to repossess vehicles owned by people who are behind on their car loan payments. There are many tow truck companies in any given city that can offer any or all of these services. However, some tow trucks are owned by private tow truck companies that specialize in offering towing services to third parties. Others are owned by mechanics and garage keepers, and are used for their own towing needs. Depending on the type of business you run, be sure to purchase a policy that meets all your liability coverage needs.

Types of Tow Truck Insurance Coverage

i) Liability Insurance

Every type of vehicle that uses public roads must have this type of coverage. In fact, it is a legal requirement. The liability insurance covers all possible liabilities that may arise from an auto accident, including; bodily injury and property damage. In case you or your driver causes an accident, this insurance will pay the replacement or repair costs incurred by the other party. All medical bills incurred by third parties will also be covered by your insurance company.

ii) Collision Insurance

While liability insurance will protect you from third party liabilities, it will not pay for your own bodily injuries and damage to your tow truck. That is why you need to also purchase collision insurance. In case of an accident, the insurance company will pay the repair or replacement costs for your tow truck if it was damaged in the collision. This policy basically protects your asset to ensure you do not go out of business.

iii) Comprehensive Insurance

While collision insurance will repair or replace your truck after a crash, it will not pay for non-collision incidents. For instance, if your tow truck is stolen or razed down by a fire, the policy will not help you in any way. That is where comprehensive insurance comes in. If your tow truck is damaged in a fire or severe weather conditions, the insurance company will compensate you.

iv) Underinsured/Uninsured Motorist Insurance

While insurance may be a legal requirement, some drivers may be operating their vehicles with expired policies or with insufficient coverage for third parties. If your tow truck is hit by a vehicle that is not insured or is under-insured, this policy will protect you from all the resulting liabilities, including; cost of repairs/replacement and treatment of injuries among others.

v) On-Hook Towing Insurance

This is an important insurance policy as it protects the vehicle being towed. In case of damage to the vehicle you are towing, this policy will pay the repair/replacement costs. Most clients normally check if a tow truck has this type of insurance before calling them.

vi) Garagekeepers Legal Liability Insurance

Most tow truck companies have a garage where they keep vehicles they tow. Garagekeepers insurance provides protection for all the vehicles that are kept at the garage on behalf of clients.