If your company uses tow trucks, you’ll need to invest in tow truck insurance. It will protect you if the unimaginable happens and one of your trucks gets into an accident. But what type of insurance do you need? What are all the ins and outs of these policies? Don’t worry – we’re here to help!
With regular commercial auto insurance, any individual who owns a vehicle or needs to drive it regularly should be insured. The same goes for tow trucks – anyone who owns the tow truck or operates it on a regular basis should be insured to drive it. The business owner is responsible for buying the tow truck insurance policy, regardless of whether or not they are the person behind the wheel.
The difference between tow truck insurance and auto insurance is that a tow truck also needs to be insured for the vehicles being hauled. It’s similar to cargo insurance, which says that the goods carried on a cargo truck must be insured.
Even if you don’t own a straightforward towing company (for example, an auto body shop that offers towing services), you still might greatly benefit from tow insurance. Many businesses use tow trucks in their day-to-day operations and should invest in tow insurance, such as:
There isn’t just one type of coverage for tow trucks. There are many types of business insurance protections available. Finding the right combination of protection types and coverage for your business is essential. You don’t want to overpay for coverage you don’t need, but you also want to ensure you’re covered in worst-case scenarios.
Business owners with operating tow trucks should select a series of coverages that will insure the truck, driver, business itself, and any individuals or property that could be harmed due to tow truck activity. When choosing an insurance policy, the business owner should work with a reputable insurance company to determine the policy/coverage, premium, limits, deductible, and system for filing claims.
If you’re unfamiliar with what some of these insurance terms mean, we’ve broken it down for you:
Insurance policies for tow trucks are composed of several individual coverages that will protect an array of entities. This could include the tow truck driver, the tow truck itself, the vehicle being towed, passengers, and more.
In addition, tow truck policies consist of lists of specific incidents that will be covered. These can include collisions, theft, vandalism, and other accidents.
Tow truck insurance is divided into various policy options to be purchased separately to fit the business’s needs best. Some options apply to commercial automobiles, and some are specific to tow trucks. The primary coverage options for tow truck policies include:
As noted above, not all incidents are covered under each specific type of coverage. For example, some policies, like bodily injury liability coverage, only apply to third parties but not the tow truck driver. This is why purchasing a collection of policies is vital to have the best coverage for your business.
Even with a broad range of coverages, certain events will never be included, such as:
If you work in repossession, towing, or other businesses that include towing, consider investing in the Minute Man XD Wheel Lift. The Minute Man XD Wheel Lift is a slide-in wheel lift designed to offer you the best in light-duty towing and repossession. Featuring a hydraulic-powered auto-load head and in-cab controls, the Minute Man XD makes short work of loading and unloading vehicles, helping you do more work in less time.
By investing in a wheel lift, you can instantly make your light-duty towing tasks safer, more efficient, and more profitable. Their proven versatility enables low operational expenses, exceptional durability, and successful towing jobs, time after time. Plus, when you use safety features, you might be able to save money on insurance costs.
Contact our team today to learn more about the Minute Man XD Wheel Lift, its features, and its pricing.
The material and information contained on this website is for general information purposes only. You should not rely upon the material or information on the website as a basis for making business, legal or other decisions.
Are you looking for ways to increase profitability for your light-duty towing operation? Whether you…
If you own a business that involves moving cars from point A to point B,…
When it comes to efficiently handling vehicle breakdowns or towing operations, businesses often face a…
If you need to transport vehicles or do some light-duty towing, you might be wondering…
When you work in the towing industry, you know that you always have to be…
Are you trying to start a business that involves tow trucks? You’ll find that investing…