The towing industry is an industry that comes with inherent risks. The drivers are exposed to broken glass and other kinds of wreckage when they respond to an accident scene. They also risk being hit by passing automobiles when they are acting in a roadside assistance capacity. Tow trucks operate in any form of weather.
With these inherent risks, tow truck insurance is an important business investment. This article discusses tow truck insurance from what it is to who needs it to how to find it. We hope to help you make the appropriate decisions regarding tow truck insurance and teach you how to find cheap tow truck insurance that works for you.
- How to find cheap tow truck insurance?
- Is cheap tow truck insurance worth it?
- How much considered cheap tow truck insurance?
- How much does tow truck insurance cost?
- Factors affecting tow truck insurance cost
- Who needs tow truck insurance?
- Types of tow truck insurance
- Best and cheapest tow truck insurance companies
How to find cheap tow truck insurance?
While tow truck insurance is necessary, it doesn’t necessarily have to break the bank. There are ways to find cheaper premiums for tow truck insurance. Here are a few tips for finding cheap tow truck insurance.
Speak to an insurance agent or broker specializing in truck insurance
These professionals can advise you regarding the coverages you should have to meet legal requirements or the coverages that would be the most beneficial to you financially. There are many insurance agents and brokers out there. You may not know that each and every insurance agent or broker has their specialized domain. Make sure you speak to an agent or broker who specializes in commercial truck insurance. They are knowledgeable and experienced in helping you figure out the coverages and the minimum limits that you need for your tow truck insurance since every tow truck insurance has nuanced differences.
Tow truck insurance is expensive because it could require several coverages. Different states may have different requirements of coverages, so you need to make sure you have the required coverages and may not need to have coverages that are not required of or not needed for your towing business.
Compare quotes from different companies
You don’t have to buy the first coverage you find. It’s wise to shop for the best deals. The rule of thumb is to get quotes from at least three companies for the best comparison. Make sure that you compare equal coverages with companies that will insure your particular business. For example, not every insurance company insures those companies who engage in repossession tasks. Getting several quotes from several insurance companies might require a lot of time and efforts since not many companies offer quotes online. Progressive is the only carrier offering tow truck insurance quotes online. Working with a top truck insurance broker like Simply Business, Commercialinsurance.net, or Smart Financial is an easier way to get several quotes since these top brokers can help you get several quotes from the companies that they represent at once.
Ask about available discounts
Some companies give discounts for bundled policies or having a CDL when you aren’t required to have one. Find out if your chosen company offers discounts and, if so, which ones might be available to you.
Even you may not be eligible for some discounts at the moment. Having the awareness that these discounts are available, you may be able to take actions to be eligible for these discounts in the next 3-6 months.
Look at online reviews
Rates are important, but they shouldn’t be everything you care about when you look for tow truck insurance. The reputation of the company and how satisfied and happy their customers are say as much as the rates they offer. Often, companies encourage their customers to give reviews of their service. Several positive reviews and good word-of-mouth discussions of the company usually indicate a company that does well for its customers. A competitive and affordable rate and a great customer satisfaction rating or review would be ideal for your final choice.
Choose a higher deductible
Selecting a higher deductible can save you money on your premiums. Just make sure that you can afford to pay the deductible amount out of pocket if you should be involved in an accident. Don’t let saving a few dollars on your premium cost you thousands of dollars you can’t readily afford later.
Keep your driving record clean
Ensure that your employees also maintain clean driving records. Clean records tend to mean safe drivers, which means fewer accidents, and insurance companies will often reward that conscientious driving with lower premiums.
Regardless of whether you find cheap tow truck insurance, it’s better to ensure you have adequate coverage than to save money upfront. The right coverage can save you money in the long run, should you be involved in an incident on the road.
Is cheap tow truck insurance always worth it?
You need tow truck insurance because you need the protection when something happens. Without insurance when accident happens, it can ruin or even bankrupt your business and your personal financial well-being.
A cheap tow truck insurance can also mean that when accidents happen, you may realize that you don’t have sufficient coverage that protect you 100% in an accident, or even worse, you are not covered in such an accident. For example, if you are involved in an accident when driving the tow truck outside of the working hours and don’t have non-trucking liability coverage, you may not be covered at all.
It is necessary not to overpay for your tow truck insurance, but sometimes too cheap tow truck insurance isn’t good either if it doesn’t cover you when you really need it.
How much is considered cheap tow truck insurance?
The average tow truck insurance cost is $448 a month, which means that half of the tow truck insurance policies are more expensive than $448 a month and the another half is less than $448 a month. If your tow truck insurance quote is less than $448 a month, you are probably in the good side.
However, if you receive a tow truck insurance quote for less than $100 a month, you should probably need to look carefully into the coverages that are included in the policy and study all the exclusions.
Does that mean if your tow truck insurance quote is more than $448 a month, that is an expensive quote? Not necessarily. Tow truck insurance cost varies significantly depending on several factors that we discuss below. One of those is whether you are a new truck driver. If you are, you should expect your premiums to be higher than the average.
How much does tow truck insurance cost?
The national average monthly cost for tow truck insurance coverage was $448 in 2020. Keep in mind that is just the average. That doesn’t necessarily mean that’s what you will pay for premiums. Several factors affect your premiums, as well as ways to find cheap tow truck insurance policies.
Again, these are just the averages. Be sure to shop around with a few companies to compare several quotes. Getting online quotes when available. Progressive is the only carrier offering a fast quote online. It shouldn’t take you more than 10 minutes to get a tow truck insurance quote on Progressive website. We recommend starting there. Working with a top broker like Simply Business or Commercialinsurance.net is a good way to get and compare several quotes more efficiently.
Learn more about the details of tow truck insurance cost.
Factors affecting tow truck insurance cost
There are some factors affecting tow truck insurance that a business can control, but others are affected by the industry itself. Some of those factors are:
- The profile of the policyholder: How many trucks or drivers are insured and how long the company has been in business
- The qualifications of the driver(s): The experience of the drivers, accident record, and motor vehicle records
- The kinds of trucks: Tow trucks are diverse in size and model as well as style of towing; the size of the truck also matters, as does age
- The services you offer: The towing you do affects the insurance you need, which also affects your costs
- The area in which you drive: If you cross state boundaries or travel long distances, your premiums will be higher; this also affects the kind of liability insurance coverage you need as well
These are just a few of the factors affecting tow truck insurance. There are more that we didn’t cover here. You are encouraged to familiarize yourself with these factors before shopping for tow truck insurance.
What is tow truck insurance?
Tow truck insurance is commercial auto insurance designed specifically for the tow truck industry. Many coverages are the same coverages other commercial trucking businesses maintain, such as liability and physical damage coverages. Some coverages are specific to tow trucks, such as on-hook coverages and garage keepers liability coverages. A qualified insurance agent can help you find cheap tow truck insurance with the coverage you need.
Who needs tow truck insurance?
Anyone who operates a tow truck or towing business needs to have tow truck insurance. Some companies that could benefit from tow truck insurance include:
- Auto body shops
- Mechanic’s repair shops
- Salvage and auction haulers
- Roadside assistance providers
- Contractors with auto clubs such as AAA
Types of tow truck insurance
Several types of insurance coverages are available for tow trucks. Some of them are required by law, while others are optional coverages that are recommended to help protect your business beyond minimums. Here are some of the coverages available.
Primary liability
Liability insurance is the minimum coverage that every tow truck needs. It’s mandatory in virtually every state. Liability insurance covers damage caused to other vehicles or injuries caused to other people in an accident you or your drivers have in your truck.
Trucking physical damage
Trucking physical damage insurance is needed to cover damages to your tow truck. Typically, these coverages include collision and comprehensive policies. Collision covers damage from accidents and comprehensive covers damage from things such as natural disasters or theft. Learn more at the best trucking physical damage insurance companies.
Medical payments:
Medical payment coverage benefits you, your employees, or any passengers in your truck if you are involved in an accident in the truck. This insurance is particularly beneficial for tow trucks since they sometimes carry stranded motorists to safety.
Underinsured motorist
Underinsured motorist helps protect you if the other driver in an accident either has inadequate insurance or no insurance. This is extra coverage that many find beneficial.
On-hook towing
On-hook towing coverage is for the cars you tow. It covers any damage to the vehicle being transported by your towing company.
Truck cargo
Truck cargo insurance covers theft or damage to any property stored in a vehicle you towed. Learn more at the best truck cargo insurance companies.
Garage keepers liability
Garage keepers liability insurance covers risks for any cars that are parked on your premises, shop, or garage. Learn more at garage keepers insurance cost and the best garage keepers insurance companies.
Trucking umbrella liability
Umbrella liability policies kick in when damage to your truck extends beyond your policy limits. Umbrella policies bridge the gap between mandatory coverages and accident expenses. Learn more at the best trucking umbrella insurance companies.
Many of these coverages are included in standard commercial coverages, while others are unique coverages explicitly designed for tow trucks.
Best and cheapest tow truck insurance companies
It can be overwhelming trying to find the best and the cheapest tow truck insurance companies. We have done the research and here are the best tow truck insurance companies that we recommend. They may also offer the cheapest tow truck insurance as well:
- Progressive: Best Overall and the only carrier offering tow truck insurance quotes online
- Simply Business: Best for comparing online quotes
- Liberty Mutual: Best for customer service
- Geico: Best for affordable rates
- The Hartford: Best for customized two truck insurance coverages
- Commercialinsurance.net: Best for the most knowledgeable agents
