Tow Truck Insurance

Commercial tow trucks help get stranded vehicles and people to safety after accidents and many other scenarios. But owning and operating a tow truck comes with a number of risks that must be addressed ahead of time with the right policy. If you own a tow truck or are considering purchasing one, tow truck insurance is critical to protect your investment. This coverage can help reimburse you for physical damage to your tow truck as well as the cost of lawsuits and more.

Fortunately, a local independent insurance agent can help you find all the tow truck insurance required for the job. They'll get you matched to a policy that includes the coverage you need at an affordable rate. But first, here's more about tow truck insurance and why it's necessary.

Common Risks Faced by Commercial Tow Truck Drivers

The commercial towing industry has been ranked as one of the most dangerous fields, period. Understanding the high risk level faced by tow truck drivers can help further illustrate the need for proper coverage. Here are a few recent towing industry stats to paint a better picture.

• There are more than 31,150 tow truck drivers currently employed in the U.S.
• There are an average of 43 deaths per 100,000 workers in the motor vehicle towing industry per year. The national average is only 2.8 deaths per 100,000 workers annually.
• About 1,280 tow truck drivers get injured on the job every year.
• Some risks that come with the job include being exposed to the elements of nature, working alongside oncoming traffic, loading and unloading heavy vehicles, and working while fatigued.
• Many tow truck drivers also reportedly face chronic stress due to the demands placed on them by the job.

Unfortunately, accidents and injuries aren't uncommon in this industry because of the natural, physical, and mental demands placed on tow truck drivers. That's why having commercial tow truck insurance is imperative. Facing just one accident or lawsuit without the proper coverage could lead to hefty financial losses.

What Is Tow Truck Insurance?

Tow truck insurance is a special type of commercial auto insurance designed to cover tow trucks and their owners and operators. A personal auto insurance policy won't cover vehicles used for business purposes, so additional coverage is necessary to protect tow trucks and their drivers. 

If your business relies on tow trucks or you own a tow trucking company, you'll need to get a tow truck insurance policy. A local independent insurance agent can help you find one at a great rate.

Who Needs Tow Truck Insurance?

Many different kinds of tow trucks and towing services exist, and they all need protection. If you work in any of the following fields, you likely need tow truck insurance:

• Auto body shops
• Auto club contractors
• Auto repairs
• Auto salvage and auction haulers
• Roadside assistance
• Roadside towing service providers
• Rotational towing services

Even if your business's category isn't listed above, if tow trucks are used for commercial purposes, they must be protected by tow truck insurance. Beyond providing your company with protection, maintaining at least a minimum amount of coverage is typically mandatory by state law in most areas.

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What Does Tow Truck Insurance Cover?

A tow truck insurance policy often comes with several forms of coverage bundled together. You can expect many tow truck policies to contain the following:

• Commercial general liability insurance: This covers expenses related to third-party lawsuits for claims of personal property damage or bodily injury caused by your business and its tow trucks.
• Tow general liability insurance: This covers expenses related to third-party lawsuits for claims of bodily injury or personal property damage not directly related to covered company vehicles.
• On-hook towing insurance: This covers expenses related to damage to customers' vehicles when they're being towed.
• Garagekeepers legal liability insurance: This covers expenses related to damage, theft, etc., to customers' vehicles while they're stored at your business premises. 
• Medical payments insurance: This covers expenses related to medical treatments to tow truck drivers and their passengers in the event of injuries in an accident.
• Collision insurance: Pays for damage to your tow trucks from a collision with another object, regardless of fault. 
• Comprehensive insurance: Pays for damage to your tow trucks due to a non-collision event such as a flood or theft. 
• Uninsured motorist insurance: This pays for damage to your company tow trucks, injury treatments to company drivers, and other expenses after an accident with an at-fault driver who doesn't carry adequate insurance of their own to reimburse you.

An independent insurance agent can help your business build a complete tow truck insurance policy.

How Much Is Tow Truck Insurance? 

The cost of tow truck insurance can vary significantly based on many different factors. In one recent year, the average monthly cost of tow truck insurance was $534. However, your business's premiums may differ depending on the following criteria:

• Location
• Number of tow trucks
• Industry
• Employee driving histories
• Type and amount of coverage needed
• Claims history

If your business has had to file claims before, it's likely that its tow truck insurance premiums will be higher as a result. Working with a local independent insurance agent is the best way to ensure your business gets matched to coverage at the most affordable rate available.

An Independent Insurance Agent Can Help You Find Tow Truck Insurance

Independent insurance agents can get to know your specific company and its tow truck usage. Based on what they find, they'll get you matched to the ideal tow truck insurance policy that offers the right amount of coverage. 

These agents have access to multiple insurance companies so they can shop and compare rates and policy options for you. Ultimately, they'll find the tow truck insurance policy that offers the best overall blend of coverage and cost.