What is tow truck insurance?

*Tow Truck Insurance is one of the many types of vehicle insurance that you can purchase. If you have a towing business, a towing company or simply want to insure a tow truck to use for personal use then you will need commercial auto liability insurance just to operate your tow truck in the state of California.

*The lowest amount of liability insurance that you must maintain is $750,000 BI/PD. However, depending on what tow contracts you have you may be required by your contracts to maintain the higher limit of $1,000,000 BI/PD.

*Additionally, there are coverage options that are only available to the towing industry. These include but are not limited to;
o On-hook (covers vehicles that are being towed);
o Garage keepers (covers vehicles while in the care and custody of an owner);
o Garage liability (covers premises, operations, products, and completed operations);
o Cargo coverage (covers goods and contents while in the care and custody of an owner).

Why is tow truck insurance necessary?

* Like any commercial vehicle, tow trucks will need to be insured for at least $750,000 BI/PD in the order to operate legally in California. Owners should also insure their tow trucks for physical damage so that they can protect their investment.

* Because tow trucks or car carriers are involved in the transportation of heavy items, tow trucks face unique liability risks.

* There are a few insurance companies that cater to towing risks and they will extend garage-keepers coverage to include the vehicle that is in tow. Other insurance companies, however, will reserve this coverage to only specified locations.

* Some insurance carriers exclude certain things in their on-hook coverage (for example, some policies won't cover you in the event that a car gets "dropped" or if improper towing techniques cause damage to the vehicle in tow).

* Typically, the most expensive part of a tow truck insurance policy is primary commercial auto liability.

The Insurance Store, Inc. has been writing towing risks and tow truck insurance for more than 20 years. We have many different companies that we can write tow truck insurance through. We can offer fair and competitive pricing. We are able to service large to small size businesses giving you security and confidence behind each truck.

To get an Insurance Quote just fill out the form here or give us a call on one of our contact numbers.