Tow Truck Insurance in California

What is Tow Truck Insurance?

All commercial tow truck owners and operators are responsible for the well-being of their drivers, customers, and the vehicles they’re serving, which is why U.S. law requires them to carry adequate tow truck liability insurance.

Although tow truck owners face more or less similar risks as commercial vehicle owners, they should also be aware of some unique perils. Accordingly, tow truck drivers have additional coverage options they can include in their basic commercial policy to provide full protection for themselves.

Who Needs Commercial Towing Insurance?

A tow truck business consists of towing disabled vehicles and providing services regarding roadside assistance. Therefore, any firm that earns money by performing such jobs should have commercial tow truck insurance – for example:

• Auto body shops
• Auto club contractors
• Auto mechanical repair
• The auto salvage and auction haulers
• Full-service stations
• Roadside service providers
• Rotational towing

What is Covered with Tow Truck Insurance?

Our insurance agency offers the following coverages you can add to your primary policy. For example:

• Tow truck liability insurance includes coverage for bodily injury and property damage you or your drivers can cause. You can be held liable in case of the following situations:
  • You’re at fault in an accident
  • You’ve damaged the car you were towing
  • You’ve caused an injury to a passenger in the vehicle
  • You’ve damaged another car vehicle while on the roadway.

You should know that tow truck liability insurance also covers legal fees and court costs if you’re sued for a covered liability claim.

• Medical payments insurance protects you from the medical costs due to the injuries to your driver and passengers while in your tow truck. This policy is vital for tow truck owners since their business often provides rides for the owners of the vehicles they are towing.
• Physical damage insurance helps you cover the costs of repairments of your truck, no matter who’s liable for the accident.
• Comprehensive insurance is the one that protects you from all the perils and disasters, but it doesn’t include collision. Therefore, you’ll be protected from natural disasters, fire, theft, vandalism, and any damage caused by an object.
• Uninsured/Underinsured motorist insurance will compensate you in case you’re involved in an accident where another driver doesn’t have enough insurance or has no coverage. It will also cover a collision with a hit-and-run driver.
• Garage service insurance is an optional policy you can choose, and it will cover all the damages done to a vehicle while it is parked or stored in a protected location. Covered losses include fire, theft, vandalism, and collisions.
• On-hook towing insurance pays for repair or replacement costs if any vehicle you don’t own gets damaged while you’re towing it. The covered damages include collision, theft, vandalism, explosion, and fire.

Calculating your risks and choosing all the coverages that may help you prevent a substantial financial loss that may bring severe consequences to your business is vital. The more coverage you buy, the more protection you get for your vehicles and other business assets. If you need more options, please get in touch with us here.