Tag truck insurance

Tow truck insurance is essential for anyone who owns and operates this kind of vehicle. Tow trucks are a necessary part of keeping our roadways clear and safe. They remove disabled vehicles, so they don’t remain obstacles for other drivers.

It isn’t an easy job and one that comes with risks. According to AAA, a tow truck driver is killed every six days. They are considered a type of emergency vehicle but aren’t always treated that way. This can put the truck and driver at risk while handling jobs on the road.

Starting a towing business takes a lot of money. A new tow truck costs between $50,000 and $100,000, with some models going much higher. Buying a towing license in most urban communities costs around $200,000. And then there are fuel costs, which have risen significantly this year.

Overhead expenses for things like power bills usually range between $5,000 and $7,000. And then there’s the cost of tow truck insurance.

Skipping the insurance may seem like a way to save money, but this can become a huge financial mistake. Even the safest driver can be in an accident. It’s impossible to know what will happen out on the road.

Tow trucks are very heavy, especially when they are loaded down with another vehicle. All that extra weight can lead to accidents if it isn’t properly secured and driven with safety in mind.

That’s just one more reason why you need to have tow truck insurance for your business.

What Kind of Companies Need Tow Truck Insurance?

If you describe yourself as a towing company, then you need tow truck insurance. Other related businesses may also need this type of coverage, including auto body shops and repair shops that need to move vehicles as well as roadside assistance companies and auction and salvage companies.

A good way to look at it is if your company offers towing, even if it isn’t your primary or most popular service, then you need to have coverage. A tow truck insurance company can review your information and suggest a policy that offers what you need.

What Kind of Tow Truck Insurance Do I Need?

As mentioned above, it is usually best to find a reliable tow truck insurance provider and talk to them about your specific needs. Different policies will provide different levels of protection. For example, if you own your company, then you may need a business owner’s policy.  This includes basic coverage for just about everything.

A business owner’s policy should include property insurance for office equipment, supplies, and buildings. It should also have business interruption coverage that pays out if your business is damaged in a way that requires you to pause operations. 

Basic liability is also a good choice, although tow truck businesses may want to pay for additional coverage like insurance for medical payments, garage service, physical damage, and tow truck liability.

On-hook tow truck insurance is important as well. This coverage will pay to repair or replace vehicles that are damaged while towing. This is for vehicles that you don’t own and will pay out if the car or truck is damaged due to explosion, fire, theft, vandalism, or collision.

Towing companies also need to have Workers’ Compensation insurance. This coverage pays if an employee becomes ill, injured, or is killed while on the job. Tow truck drivers have a high-risk profession that they must do in all weather conditions. 

The Bureau of Labor Statistics reported that accidents are the leading cause of death for tow truck drivers. Experts estimate a rate of over 40 deaths per 100,000 workers. That is very high when you consider that other industries are usually around 3 deaths per 100,000 workers.

Having enough coverage to protect them and their families in case of an accident is a necessity. Make sure you have adequate insurance for your employees.

What Is Not Covered by Tow Truck Insurance?

It is important to understand the fine print when buying tow truck insurance. Some companies will only cover a manufactured tow truck and not a modified vehicle. Some companies use pickup trucks that have a hook welded on. These vehicles may be ineligible for coverage while others may be eligible but at a higher rate.

Also, keep in mind that on-hook tow truck insurance doesn’t cover damage to vehicles you or your business owns or any vehicles that are not hooked to your tow truck. It also won’t pay for personal injuries sustained by two truck drivers and passengers.

If you plan to store vehicles for customers, then also keep in mind that on-hook only pays when damage happens during towing. If you are storing vehicles, you need a garagekeepers policy. This provides coverage in case damage happens while someone else’s vehicle is stored on your property.

There is sometimes a little confusion because insurance companies in Texas and Virginia use the name “garagekeeper’s insurance” to describe on-hook coverage. If you operate in either of these states, then you need to also ask for “storage location insurance.”

Where Can I Get Low Rates on Tow Truck Insurance?

Finding low rates on tow truck insurance is easy. Just visit InsureTrucking.com and click the “Get a Quote Now” button. You can also contact us at 866-307-5480 with questions or to learn more about our insurance rates and coverage options.

Read More

Semi truck insurance is a must-have for anyone who wants to open a trucking business. You need to be covered or you could end up losing everything. 

Any vehicle can easily rack up thousands of dollars worth of damage in an accident. However, when you are dealing with something the size of a semi, that amount quickly skyrockets. Just looking at crashes involving an injury, the average cost of a semi truck accident pulling one trailer is around $334,892. If two or three trailers are being pulled, the average shoots up to more than $1.2 million.

Do you have the funds to cover all of that or even more? What about the fines and penalties that come with not being insured? 

Total losses can also increase based on what was being transported. High-value cargo will automatically raise the costs. Many things have to be paid for in an accident, including towing, storage, vehicle damage, injuries, ongoing medical expenses, loss of revenue, administrative fees, and lost cargo.

Indirect losses can also be felt by a company after an accident. Clients may be lost as well as sales. Employees may lose work hours, or you may need to cover the bill to hire and retrain new workers. More money may be needed if a government agency gets involved or if you face a lawsuit.

It’s easy to see just how quickly one accident can add up. If you don’t have semi truck insurance, then you will be on the hook for all of it.

What Kind of Semi Truck Insurance Do I Need?

There are several different types of semi truck insurance available. These cover different parts of an accident or incident. General liability insurance will pay for damage to third-party property and bodily injury. Primary liability insurance covers the same thing if it is the result of a semi truck accident.

Other types of semi truck insurance include:

  • Non-trucking Liability Insurance – This type of coverage protects your semi truck while it is used for non-commercial purposes. This could be times when you use it for personal trips, like stopping at the bank, going to the store, or picking up the kids. Anytime you are not driving for your business, you need non-trucking liability coverage.  
  • Physical Damage Insurance – This coverage pays out if there is damage done to your vehicle. It is a general term that covers things like theft, natural disasters, collision, or vandalism. It may also help pay for towing and storage costs after an incident. You should speak to your insurer to find out what is covered.
  • Motor Truck Cargo Insurance – Motor truck cargo coverage will compensate you for direct physical loss to property while in transit. This also includes while cargo is being loaded or unloaded as well as while it is sitting at a terminal or dock. Some insurers may allow coverage extensions that will pay for losses related to spoilage or broken heating or refrigeration equipment.
  • Bobtail Insurance – When a truck is used without a trailer, it is considered “bobtailing.” Bobtail insurance provides coverage when the truck is operated without a trailer. This works much like non-trucking liability but only pays if the truck is not transporting cargo. 
  • Workers’ Compensation Insurance – Most companies will be required to hold workers’ compensation coverage with their semi truck insurance. It is mandatory in almost every U.S. state. It ensures that some of the cost of injuries, medical expenses, lost wages, rehabilitation, and death benefits are covered if an employee is injured or loses their life in an accident.

The type of semi truck insurance you need may vary. You should speak to your insurer to find out which coverages are required, and which are good to have based on your personal and business needs.

What Factors into the Cost of Semi Truck Insurance?

Many things are considered when providing a semi truck insurance quote. If you lease to a company, then you may already have primary liability insurance under that business. You may need to add non-truck and bobtail coverages, which will typically come at a lower cost.

Some states have higher rates for semi truck insurance, so location is a factor. You may also have to pay more depending on your federal filing status. Federal filing is required for some trucking companies, like those who haul hazardous materials or those who operate across state lines. These have much higher minimum liability limits, which leads to higher premiums.

Used vehicles typically cost less to insure than brand new models. The type of cargo you haul and the routes you take will also be determining factors. If you have a bigger operating area, then you’ll likely have to pay more for semi truck insurance.

Just like cars and smaller trucks, driving history is reviewed when estimating insurance rates. If you have a good driving record, then you’ll get a better price. If you have a lot of violations and accidents, then you should expect to pay more. Even a minor accident can increase insurance premiums. This is especially true for semi trucks because they are much bigger, heavier, and more capable of causing catastrophic damage should something go wrong.

How Much Will My Semi Truck Insurance Cost?

The only way to know exactly how much your semi truck insurance will be is to request a quote from an insurer. They can review your specific situation and tell you what they will charge for the types of coverage that you need.

Owner-operators that lease on to a motor carrier usually pay $3,000 to $5,000 annually. If you are an owner-operator without a motor carrier, then that average increases to $9,000 to $12,000 per truck. 

Rates have increased over the years for newcomers to the industry. You could pay as much as $12,000 to $16,000 for your semi truck insurance. The best way to get started is to request a custom quote. This will help you see what you need and how much you’ll have to pay to stay legal and protected on the road.

Visit Insure Trucking now to learn more about semi truck insurance or to get a personalized quote.

Read More