What is Tow Truck Insurance?
Driving a tow truck comes with a significant amount of risk, for operators frequently find themselves working in non-ideal circumstances. Poor weather conditions, dangerous roadside locations and driving itself are just some of the factors that contribute to the various risks operators face. Tow truck insurance won’t prevent an accident or disaster from taking place, but it can help operators in Vermont recover from the financial consequences of a covered incident.
Tow truck insurance is a specialized form of commercial trucking insurance that’s designed to meet the unique risk mitigation needs of tow truck operators. Because operators are exposed to multiple risks, policies generally have several coverages that work to create a web of protections.
What Vermont Businesses is Towing Insurance Right For?
The vast majority of businesses that offer towing services are required by Vermont state law to carry minimum levels of insurance coverage because they operate vehicles on public roads, and most businesses should consider purchasing much more than the minimum-required protections. A few businesses that this type of package policy is especially well-suited for include:
- Businesses that only offer towing services
- Auto service centers that have a tow truck
- Independent operators who drive a tow truck
Depending on the specifics of their trucks and services, car transport companies might also find this insurance meets their needs. An insurance agent who’s familiar with the details of towing insurance policies can help businesses determine whether this is the most appropriate kind of policy if there’s any question.
What Protections Does Towing Insurance Provide?
Depending on a business’ particular needs, a towing policy might provide a number of different protections. Some common ones are:
- Tow Truck Liability Coverage, which may cover injuries and damage that an operator is responsible for
- Physical Damage Coverage, which may cover damage to a truck that occurs in an accident or certain other incidents
- Comprehensive Coverage, which may cover damage that occurs in other, non-accident incidents
- Medical Payments Coverage, which may cover injuries that are sustained in an accident
- On-Hook Towing Coverage, which may cover vehicles while they’re connected to a truck
- Uninsured and Underinsured Motorist Coverage, which may cover accidents caused by improperly insured drivers
- Garage Service Coverage, which may cover towed vehicles that are in storage
(The exact coverages that policies make available varies from one policy to the next.)
Is Workers Compensation Included in Towing Insurance Policies?
Although many towing companies need workers compensation, this coverage isn’t always purchased through a towing insurance policy. It might be occasionally, but many businesses instead procure workers compensation via a separate policy that stands by itself.
Agents who are familiar with towing policies typically also assist with workers compensation.
How Much Do Towing Policies Cost?
Insurance companies take into account many factors when setting premiums for towing policies, and rates vary as a result. Some of the items that may influence a policy’s cost are the:
- Year, make and model of any trucks used
- Driving records of all operators
- Roads that a company services
- Kinds of vehicles a company tows
- Limits, coverages and deductibles selected
Even with variances in cost, though, towing policies tend to be affordable. They’re almost certainly more affordable than facing legal fines or major accidents with no insurance in place.
How Can Businesses in Vermont Get Tow Truck Insurance?
For help insuring a towing business in Vermont, contact the independent insurance agents of T.S. Peck Insurance. Our agents have helped many businesses in the state find tow truck insurance that provides them with robust protection, and we’re ready to assist you.