Tow truck drivers and operators provide an essential service to the public, but their work is not without risks. Towing vehicles is a dangerous job, and accidents can happen even when proper safety measures are in place. That’s why tow truck insurance is critical for any towing business.
Tow truck insurance policies can provide coverage for a wide range of risks, including liability claims, physical damage to tow trucks, and injuries to employees. However, not all tow truck insurance policies are the same, and coverage options and costs can vary widely between insurance providers. That’s why it’s important to compare tow truck insurance quotes to find the right coverage at an affordable price.
In this article, we’ll discuss the benefits of comparing tow truck insurance quotes, the pros and cons of comparing tow truck insurance quotes online and through brokers, how to compare quotes to find the best coverage for your business, the different types of tow truck insurance coverage options, and the factors that affect tow truck insurance costs.
- Compare tow truck insurance quotes online
- Compare tow truck insurance quotes through brokers
- Benefits of comparing tow truck insurance quotes
- How to compare tow truck insurance quotes
- Tow truck insurance coverage options
- How much does tow truck insurance cost?
- Factors affecting tow truck insurance costs
Compare tow truck insurance quotes online
Not many insurance companies offer tow truck insurance quotes online. Below are the top 3 providers with a good reputation that we recommend:
- Progressive: The overall best provider with fast online quotes and several discounts
- biBERK: Best provider with affordate online quotes
- THREE: Best provider offering online quotes for small towing business
If you want to explore more tow truck insurance carriers, here are our recommendations of the best tow truck insurance providers for your consideration.
Getting and comparing tow truck insurance quotes online come with advantages and drawbacks:
Pros:
- Convenience: Getting an online quote is very convenient since it can be done from anywhere, at any time.
- Speed: The process of getting an online quote is very fast. You can get multiple quotes from different insurance companies within a matter of minutes.
- Control: When getting an online quote, you have control over the process. You can choose which insurance companies to get quotes from and can compare different policies side-by-side.
- Cost savings: Some insurance companies offer lower rates for online quotes since they save on marketing and sales expenses.
Cons:
- Limited information: When getting an online quote, you may not have all the information you need to make an informed decision. You may need to do additional research to fully understand the policy terms and conditions.
- Lack of personal touch: Online quotes may lack the personal touch that comes with working directly with an insurance agent or broker.
- Limited customization: Online quotes may offer limited customization options since they are based on pre-set policy options.
Compare tow truck insurance quotes through brokers
Another option is to work with a good broker to get and compare several quotes. If you are new to buying tow truck insurance, you should seriously consider working with a good broker to find the right coverage at the most affordable rates. Below are the top brokers that we recommend:
- Simply Business: Best for comparing several quotes to find the most affordable rates
- Smart Financial: Best to find the cheapest minimum coverage
- Tivly: Best broker to work with if you prefer working 1:1 with a knowledgeable agent
Additionally, here are the top tow truck insurance brokers for your consideration.
Working with brokers to compare tow truck insurance quotes has pros and cons that you should be aware of:
Pros:
- Brokers have access to multiple insurance companies: Brokers work with multiple insurance companies and can help you compare quotes from different providers, which can save you time and effort.
- Brokers can offer expert advice: Brokers have extensive knowledge about the insurance industry and can offer expert advice on the types of coverage and policy limits that would best suit your needs.
- Brokers can negotiate better rates: Brokers can negotiate with insurance providers on your behalf, potentially helping you to secure better rates.
- Brokers can provide personalized service: Brokers work closely with clients to understand their specific needs and can provide a personalized service that meets those needs.
Cons:
- Brokers may not have access to all insurance providers: While brokers work with multiple insurance companies, they may not have access to all providers, which could limit your options.
- Brokers may have biases: Brokers may have biases towards certain insurance providers, which could affect the quotes they provide.
- Brokers may not be licensed in all states: Brokers may not be licensed in all states, which could limit their ability to provide quotes in certain areas.
Benefits of comparing tow truck insurance quotes
Now that you know about the different types of tow truck insurance coverage and the factors that can affect insurance costs, it’s time to start comparing quotes. Here are some of the benefits of comparing tow truck insurance quotes:
Save money
By comparing tow truck insurance quotes from different providers, you can find the best coverage at the most affordable price. This can help you save money on insurance premiums while still getting the coverage you need.
Find the right coverage
Comparing quotes can also help you find the right coverage for your specific business needs. By comparing coverage options and limits, you can make sure you’re getting the coverage you need to protect your business from financial loss.
Evaluate insurance providers
Comparing quotes can also help you evaluate different insurance providers. By researching the reputation and customer service of different providers, you can make an informed decision about which provider to choose.
How to compare tow truck insurance quotes
Now that you know the benefits of comparing tow truck insurance quotes, here are the steps to follow to compare quotes:
Gather information
Before you start comparing quotes, gather all the necessary information about your business and tow truck operations. This includes the make and model of your tow truck, the types of towing services you offer, and the coverage limits you need.
Research providers
Research different insurance providers and compare their coverage options, prices, and customer service ratings. Look for providers that specialize in tow truck insurance and have experience insuring businesses like yours.
Get quotes
Request quotes from several different providers, making sure to provide accurate and complete information about your business and tow truck operations. Be sure to ask about any discounts or special rates for tow truck businesses.
Compare quotes
Compare the quotes you receive from different providers, taking into account the coverage options, limits, and premiums. Make sure you’re comparing apples to apples by looking at the same coverage options and limits from each provider.
Make a decision
After comparing quotes and evaluating different providers, make an informed decision about which tow truck insurance policy to purchase. Make sure you understand the coverage options, limits, and exclusions of the policy before making a final decision.
Tow truck insurance coverage options
Tow truck insurance policies typically include several coverage options. Trucking liability insurance is legally required in all states. However, other states have different tow truck coverage requirements. You need to make sure to research your state’s requirements to understand what you need to have.
Let’s take a closer look at some of the most common coverage options:
Liability insurance
Liability insurance is the most basic type of tow truck insurance coverage and is required by law in most states. This insurance covers bodily injury and property damage that may be caused by the tow truck. If a tow truck is involved in an accident that causes damage to another vehicle or injures someone, liability insurance will cover the cost of the damages up to the policy limits.
Physical damage coverage
Trucking physical damage coverage provides protection for your tow truck if it is damaged in an accident or by another covered loss. This coverage includes collision coverage, which covers damage caused by a collision with another vehicle or object, and comprehensive coverage, which covers damage caused by other covered events, such as theft or vandalism.
On-hook and in-tow coverage
On-hook and in-tow coverage provides protection for the vehicles that are being towed by your tow truck. This coverage can help cover the cost of damages to the vehicle being towed, as well as damage to the tow truck itself while it’s towing another vehicle.
Garage liability insurance
Garage liability insurance is designed for businesses that operate tow trucks and provide auto repair services. This coverage can help cover the costs of damages to vehicles while they’re in your care, custody, or control. For example, if a customer’s car is damaged while it’s in your garage for repairs, garage liability insurance will help cover the cost of the damages.
Garagekeepers insurance
Garagekeepers insurance is similar to garage liability insurance but provides additional protection for vehicles that are left in your care for storage rather than repairs. For example, if you operate a tow truck and impound lot, garagekeepers insurance can help cover the cost of damages to vehicles that are stored on your lot.
Workers’ compensation insurance
Workers’ compensation insurance provides coverage for your employees if they’re injured on the job. This coverage can help cover the cost of medical expenses and lost wages if an employee is injured while operating a tow truck or performing other job-related tasks.
How much does tow truck insurance cost?
The average cost of tow truck insurance is $448 per month or $5,376 per year. Most towing businesses pay between $350 to $920 per month per tow truck for a trucking liability insurance policy. This is the most important coverage and it is legally required in all states.
If you add more coverages such as physical damage, on-hook and in-tow coverage, and garage keepers coverage, you will pay more. A comprehensive tow truck insurance policy can cost between $820 to $1,430 per month.
Keep in mind that this is just the average rate. You will get a different rate. Be sure to shop around with a few companies or work with a good broker like Simply Business or Smart Financial to get and compare several quotes to find the cheapest one for your business.
Factors affecting tow truck insurance costs
The cost of tow truck insurance can vary widely depending on several factors. Here are some of the factors that can affect tow truck insurance costs:
Type of tow truck and its value
The type of tow truck you operate and its value can affect your insurance costs. Newer and more expensive tow trucks may require more coverage and will generally cost more to insure than older, less expensive models.
Towing services offered
The types of towing services you offer can also affect your insurance costs. If you offer heavy-duty towing services, for example, you may need more coverage than if you only offer light-duty towing.
Driving record and experience
Your driving record and experience can also affect your insurance costs. If you have a history of accidents or traffic violations, you may have higher insurance premiums. Similarly, if you’re a new driver, you may have to pay more for insurance until you gain more experience.
Location
Your location can also affect your tow truck insurance costs. Insurance premiums can vary widely depending on the state and city you operate in, as well as the crime rate and other factors in your area.
Coverage limits
The coverage limits you choose for your tow truck insurance policy can also affect your insurance costs. Higher coverage limits generally mean higher premiums, but they can also provide more protection if you’re ever involved in a serious accident or liability claim.
Conclusion
Tow truck insurance is an essential part of protecting your towing business from financial loss. By understanding the different types of tow truck insurance coverage options and the factors that can affect insurance costs, you can find the right coverage at an affordable price. Comparing tow truck insurance quotes from different providers can help you save money, find the right coverage, and evaluate insurance providers. By following the steps outlined in this article, you can make an informed decision about which tow truck insurance policy to purchase for your business.
