Tow Truck Insurance

Whether you own a tow truck as an independent self-employed profession, you own a full fleet of tow trucks and have multiple drivers as employees, or you provide tow truck services as part of another business such as auto repair, those trucks are a key part of your business operations. Tow truck operators and owners depend on the vehicles to provide their business services. You cannot make money from customers if your trucks are incapacitated due to accidents and unexpected damages.

Your company trucks drive frequently as well. Regardless of weather hazards and road conditions, your tow truck is expected to go out at a moment’s notice to rescue stranded drivers. Constant driving puts your trucks at more of a risk for auto accidents and other perils. Many of these potential problems are quite expensive to repair and could force you out of business due to the financial hardships they cause. Protect your trucks and the viability of your company by carrying the right types of commercial auto insurance coverage.

  • Liability Insurance – Liability insurance pays for damages when you or one of your tow truck drivers is at fault in an auto accident. If for example, your tow truck rear-ends another driver in a heavy traffic jam, your company is legally obligated to pay for any repairs the other vehicle needs. If injury occurs, you must also pay the related medical expenses. Liability insurance pays these expenses for you instead.
  • Bodily Injury – The bodily injury section of your liability insurance pays the medical bills, hospital expense and related costs for other parties in an auto accident. If you are responsible for the accident, or an employee of your company is responsible, the bodily injury portion of your commercial coverage will pay up to a specified amount per person injured in the accident. Bodily injury can pay for ambulance transport, emergency medical care, hospital stays, funeral expenses, long-term care costs and additional related items. Coverage is limited per accident in addition to each person, depending upon the type of liability policy your business carries. A split policy designates the maximum amount paid per person injured and the maximum amount per accident that the insurance policy will pay. A combined limit policy simply specifies one total coverage amount. This can be helpful if one person is much more severely injured than others.
  • Property Damage – The property damage section of your commercial liability insurance policy pays for the costs of repairing the other vehicles involved in the accident. If your company tow truck runs into another vehicle for example, the property damage protection will pay for that vehicle’s repairs. Likewise, property damage protection can pay for repairs or replacement of inert objects that your tow truck runs into, such as a telephone pole or fire hydrant.

Medical Payments – Medical payments insurance pays for medical expenses and bills that arise for you and any passengers in your tow truck, regardless of who is at fault for the accident. This insurance option is not available in all areas so contact one of our licensed specialists to discuss this option fully.

Physical Damage Insurance – Physical damages insurance is protection for your tow trucks. It pays for miscellaneous events and hazards that cause damage to your truck. This coverage can be a combination of the following types of coverage:

  • Comprehensive Physical Damage Protection – Comprehensive damage protection pays for a wide variety of incident types that can damage your vehicle. This coverage is particularly important for companies that do not own their tow trucks in full. If you have a lien on the truck or it is leased, comprehensive damage protection can pay for a variety of problems that might arise. If a tree falls on the truck for example, or a hail storm creates dents, comprehensive damage protection can pay for the cost of repairs. Comprehensive coverage does not pay for damages caused by a roll-over or collision, but it does pay for vandalism repairs and theft.
  • Collision Damage Protection – Collision damage protection pays for collision and roll-over events. If your tow truck overturns on an icy road for example, or it backs into a parking meter, collision damage will pay for the necessary repairs.
  • Specified Peril (CAC) – CAC insurance is Fire and Theft with Combined Additional Coverage. This coverage also pays for non-collision events but it is limited to protection for only those hazards which are specified on your commercial insurance policy.

Uninsured or Underinsured Motorist – Even though auto insurance is required by law in most states, a percentage of people still do not carry even the basic liability protection. Those that do carry basic insurance may not carry enough to cover all of the costs for repairing or replacing your tow truck. When an uninsured or underinsured motorist is responsible for an auto accident, this insurance can protect you from having to pay the bills out of your own company’s pocket.

  • Bodily Injury – Bodily injury coverage pays for medical expenses when your tow truck is hit by an uninsured motorist, or is the victim of a hit and run. It can supplement medical expenses when the motorist is underinsured as well. Bodily injury coverage will pay hospital and doctor’s bills, rehabilitation treatment, long-term care, funeral expenses and more on a per person or per accident basis.
  • Property Damage – If your tow truck is damaged by another driver, the cost of repairs or replacement can be extensive. If the other driver does not have liability insurance, your uninsured motorist policy can cover the costs so that you don’t have to. If the responsible driver carries insurance but it is not enough to cover the full cost of your truck repairs, your policy can make up the difference.
  • Collision Deductible Waiver (CDW) – If your company carries an uninsured or underinsured motorist policy with bodily injury protection, you can also get a collision deductible waiver. This CDW makes it so that you do not have to pay your insurance deductible when the other party was at fault but not insured, or not adequately insured to cover all costs.

Other Important Commercial Auto Insurance For Tow Trucks Includes:

  • Rental – Your business auto insurance policy can pay for the cost of a rental tow truck while you’re waiting for yours to be repaired.
  • Towing – Towing coverage kicks in when your vehicle needs to be towed away for a repair.
  • On hook towing – This insurance specifically protects your customers vehicles when they are attached to your tow truck.
  • Accessories – The specialized equipment that you use inside of the tow truck can be protected from damages and loss as well. Navigational GPS devices for example, and communications radios are examples of the types of accessories and equipment protection that can be added to your commercial insurance policy.