Tow Truck Insurance Programs: Your Guide to Purchasing Commercial Truck Insurance

Strong Tie Insurance October 25, 2021 Our Blog

You know that you need cheap commercial truck insurance to operate your tow trucking business. But with so many insurance providers, and with each plan offering various coverage types and with even more varied conditions, it’s difficult to choose which tow truck insurance program you should purchase. 

Check out the information below to help guide you as you shop for the best tow truck insurance program for you!

What is Tow Truck Insurance?

Tow truck insurance is a type of commercial truck insurance with a series of coverage variations that aim to protect a tow truck business.

Given the unique circumstances of tow truck companies, they face additional hazards on the road which require additional insurance coverage compared to those other commercial vehicles and trucks require.

Tow truck insurance has coverages ranging from primary liability and physical damages coverage to on-hook coverage and cargo coverage.

These coverage types aim to prevent unforeseen financial liability due to damages incurred by the tow truck, the driver, the towed vehicle, as well as the customer, and the personal belongings in the towed vehicle. 

How Does Commercial Tow Truck Insurance Work?

Any trucking business needs commercial truck insurance. This is because it is a specific type of commercial automotive insurance with coverages that protect a tow trucking company from the hazards the nature of the job brings.

This type of insurance is a requirement for any tow trucking company to operate. This is also a way to safeguard your business as well as others you will come in contact with as you operate your tow truck business.

There are many coverage types, limits, premiums, and deductibles available when looking to secure an insurance policy for a tow truck business. It’s up to the business owner to decide, depending on the nature of business and the hazards that they face, which coverages to include in their insurance policy.

Coverage type refers to the incidents covered, type of damages, and nature of expenses that the insurance policy will finance.

Meanwhile, limits refer to the maximum amount of coverage an insurance policy will cover and the deductible is the out-of-pocket charge one must pay to file a claim before their insurance company will cover the rest of the expenses.

Depending on the coverage, the premium or monthly fee to be paid in order to maintain an insurance policy can vary. In 2020, the basic roadside tow trucking businesses pays $1000 to $2000 for their commercial tow truck insurance per month on average.

How to Purchase Commercial Truck Insurance?

Whether it’s commercial tow truck insurance or any other type of commercial truck insurance, it is the responsibility of the business owner to purchase it from an insurance company. Check out the steps below to help guide you when shopping for commercial truck insurance.

  • Identify the risks and hazards of your trucking business

Before shopping for any insurance plan, first, assess your business and identify the risks and hazards that you face. Besides the possibility of getting into roadside accidents and causing injury or damage to property, what other hazards do you face?

For tow trucking businesses, truck drivers are exposed to a higher risk of accidents and deaths. They are also constantly around damaged vehicles, which may cause injury. 

Additionally, tow trucks transport vehicles, and oftentimes, their drivers also come along with it. This holds towing companies reliable for any loss, damages, or injury that may happen to their customer, their customer’s vehicle, and any item that is inside their customer’s vehicle.

These additional risks may result in hefty fees or even lawsuits.

  • Consider the coverage options and determine which ones your business needs

Once you’ve identified the risks and hazards your business faces, you should learn more about the many coverages offered by insurance companies.

Doing so helps you determine which ones you need to protect yourself against the risks and hazards you identified.

Some common coverages that come with commercial truck insurance are:

  • Primary Liability Coverage

Primary liability coverage protects other people and property from your negligence. When your truck injures someone or damages property, this coverage will pay for the damages within your policy limit.

  • Physical Damage Coverage

Physical damage coverage protects the truck itself against any damages caused by you or anyone else. This usually covers damages caused by road accidents, as well as fire, theft, and vandalism.

  • Medical Fees Coverage

Medical fees coverage covers medical costs for injuries incurred by your driver or anyone else riding in your truck such as a customer or another staff.

  • Uninsured or Underinsured Motorists Coverage

Uninsured or underinsured motorists coverage protects tow trucks against uninsured or underinsured motorists, hence the name—in case you encounter an incident where the other party can’t pay for your damages or can only pay for a part of your total damage costs

  • Collision Coverage

Collision coverage compensates you for damages or replaces your truck should it collide with another car by accident, regardless of whose fault it is.

  • Look for a reputable insurance provider that offers the coverage options you want

Once you know what coverages you want to be included in your commercial truck insurance, start looking for a reliable insurance provider.

This can be an agent or a company. Check out the insurance provider’s reputation and assess the insurance company’s financial capability before committing to one.

  • Seek professional advice

Even when you’ve gathered all the information you need to make an informed decision about where to purchase your desired insurance plan, it is highly advisable that you seek professional advice from seasoned insurance agents.

They can help you understand how your chosen coverages will apply to your situation, and they may also give you additional insights into the limit and premium you should choose to best protect your business.

  • Shop for an insurance plan

After identifying the company you want to purchase insurance from, start shopping! Consider the price and how able you are to pay the premium.  

Tow Truck Insurance Program 

Though costly, tow truck insurance is a necessity for all tow truck companies. It’s an investment for your business’ safety and a preventive measure against potential financial losses which may cripple your business.

Purchase a tow truck insurance program from Strong Tie Insurance. With over 20 years of experience protecting trucking companies, we can help advise you about cheap commercial truck insurance, so you can have the policy best suited to the risks and hazards faced by your tow trucking business.

Get a free quote, contact us at Strong Tie Insurance today!