Best Tow Truck Insurance
From Auto Buying Tips.com
by Robert Osborne

Auto Insurance

You could consider yourself to be in the towing business if you receive income from repairing vehicles, towing disabled vehicles, providing roadside assistance, or even repossessing cars and trucks. As with any business, to protect yourself and abide by state and government laws, you will need the best tow truck insurance. But tow truck insurance isn’t like typical commercial truck insurance. Not only do have your investments to think about, but you are also responsible for the property of another person. Let’s take a look at what kind of insurance you will need for your tow truck.

Like any other vehicle, you’re going to need liability insurance. Should you be at fault for an accident, this type of insurance will cover injuries or damage sustained by another person or object. A portion of your liability insurance can cover hospital or medical bills, funeral expenses, and perhaps even lost wages as a result of the accident. This portion of your liability insurance is referred to as “bodily injury.” The “property damage” portion of your liability insurance will cover items lost or damaged in the case of an accident, such as other vehicles, lamp posts, personal property, and, in some cases, even pets. Liability limits are set by you, the policy holder, and can be designated into split limits or as a combined single limit. Split limits are decided as maximum bodily injury per person, bodily injury for all those involved in an accident, and total for all property damaged in the accident. With a combined single limit, no distinction is made between how much money is spent on persons versus property. In most cases, liability insurance is required by law.

Medical payment insurance pays for medical expenses for you and your passengers in an accident regardless of who is at fault. Just like liability insurance, you will need to select a limit for your medical payment coverage. Some states require commercial tow trucks to carry this kind of truck insurance while others do not. A knowledgeable broker will help you determine if you need this type of coverage or not.

Physical damage coverage deals with deductibles rather than limits and pays to repair your vehicle in the event of an accident, a tree falling on your vehicle, or vandalism. You will choose an amount that you can pay out of pocket at any given time as your deductible. Once your deductible is met, the physical damage insurance will cover the rest. To keep monthly premiums down, some people choose a higher deductible, but again you have to consider how much you could pay up front should something happen to your truck. Just like regular vehicle insurance there is a collision part to your physical damage coverage. This addresses collisions and rolled vehicles. Comprehensive trucking insurance is another subcategory of this type of coverage and covers pretty much anything the collision insurance won’t. Bigger trucks will need fire and theft with combined additional coverage insurance, which can also be referred to as specified perils insurance or limited comprehensive insurance. This type of coverage will protect your large truck from the elements, theft, vandalism, collision with an animal, and can even repair or replace your truck while it is being transported from one location to another. If you are leasing your tow truck, you may be required to carry this kind of insurance. If you have a newer, more valuable tow truck, this type of insurance would be a wise investment.

Uninsured motorist insurance will protect you and your passengers in the event of a hit and run. It will pay for damages sustained in an accident, lost wages, and perhaps even pain and suffering caused by persons with inadequate or no insurance. Rules and regulations pertaining to this type of insurance are mandated by state, and again you will need to ask your broker for assistance in obtaining the right amount of uninsured motorist insurance for your business. Uninsured motorist property damage insurance will pay for damages inflicted upon your vehicle by an uninsured or underinsured motorist and is not available in all areas. These coverages are determined by deductibles rather than limits.

If your tow company services cars and there is a chance of a customer’s vehicle being left on your property over night, you will want garagekeepers legal liability insurance. In Texas and Virginia, this type of insurance is referred to as storage location insurance. Garagekeepers legal liability insurance will help you pay for repairs to your customer’s car due to fire, theft, or vandalism. You will need to choose a limit for this type of insurance that will be available to you prior to an incident. You also need to choose a deductible per vehicle that you will be responsible for. Once that deductible is met, your insurance will help cover the rest of the repairs to that vehicle, up to your limit for the occurrence.

On-hook towing insurance covers the vehicle you are towing from damages caused by the elements, theft, vandalism, or explosion while the vehicle is being towed. In Texas and Virginia, this type of insurance is referred to as garagekeepers legal liability insurance. A limit pertaining to each occurrence must be set, as well as a deductible you will pay before insurance kicks in.

The majority of commercial trucking insurance companies will not provide repossession insurance. In fact, if a certain percentage of your revenue comes from performing repossessions, you may not be eligible for commercial tow truck insurance from many tow truck insurance companies. Repossession insurance is kind of a “specialty” product and only a handful of insurance companies, those that specifically handle tow truck insurance, will have it. If you are in the business of repossessions and your current broker is not familiar with the rules and regulations governing this field of insurance, it may be wise to get a referral elsewhere. When it comes to your assets and the property of those you serve, it is better to be safe than sorry.