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Tow Truck Insurance

Tow truck companies and other companies who might also own and use tow trucks for their business (e.g., auto repair shops) must have truck insurance.

Financial risks from operating a tow truck can eclipse those of personal vehicles, so it’s extremely important to purchase the right insurance to protect yourself and your business from these risks.

Tow Truck Insurance Coverages

Not all tow truck companies or operators are the same, and what may be necessary for one may not be necessary for the other.

This remains true where tow truck insurance is concerned. Fortunately, there are several tow truck insurance coverages that allow you to customize your policy to fit your business’ needs.

Common commercial tow truck insurance coverages include:

  • Liability insurance – This is the most required type of auto insurance and is made up of the following coverages:
    • Bodily injury – The coverage will help pay for costs related to injuries suffered by others from an accident caused by you or your drivers.
    • Property damage – If you or your employees cause an accident while driving your tow truck, this coverage will help pay for the repair or replacement of the other party’s property that was damaged in the accident.
  • Collision – This coverage will help with costs related to the repair or replacement of your tow truck if it is damaged in a crash.
  • Comprehensive – This coverage will help with repairs and replacement of your tow truck if it is damaged in a wide variety of non-collision incidents (including fire and severe weather).
  • Uninsured/underinsured motorist – This will help you cover your cost if you are hit by a driver who has either no coverage at all, or coverage with limits that are inadequate to cover your damages/injuries.

Towed Property

Towing companies not only have to worry about their trucks and the vehicles they may damage in an accident; they also have to be concerned about the vehicles that they tow.

Most commercial auto insurance companies offer coverages for these towed vehicles. Examples of these types of coverages include:

  • On-Hook Towing Insurance – This will help pay for damages to vehicles you are towing.
  • Garagekeepers Legal Liability Insurance – This will cover vehicles you are storing for clients.

Tow Truck Insurance Filings

Some states require you to submit filings to certify that your tow trucks meet the state’s required insurance laws.

These states include:

  • Colorado.
  • Montana.
  • Oklahoma.
  • Texas.

Your commercial auto insurance is responsible for submitting these filings. Ask your representative for more information.

You can also learn more by reading our Intrastate Truck Filings page.

Purchasing Tow Truck Insurance

Most commercial auto insurance companies offer tow truck insurance, and commercial auto insurance quotes are readily available online to help you with your comparison-shopping.

After you have received your quotes, remember to work closely with your commercial car insurance agent to make sure you get a policy that best fits your business needs.

Towing for Repossession

Companies who tow for repossession purposes may have a difficult time purchasing tow truck insurance. Because of the extra risks related to repossession towing, several commercial auto insurance companies will not provide tow truck insurance to repossession companies.

Continue to shop online and work with insurance agents to find a commercial auto insurance policy that will work for you.

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