Are you an owner of a towing company having trouble finding the right tow truck insurance for your business? Here is an easier way that we have found to solve your problem.
All you need right now is to read this article and find tow truck insurance that suits you best.
What is tow truck insurance? Who needs it?
Tow truck insurance is a specialised form of commercial truck insurance that helps protect your truck from many risks on the road.
Types of businesses that need this insurance include:
- Roadside assistance companies
- Auto body shops
- Auto mechanical repair shops
- Salvage and auction companies
- Auto club contractors
- Full-service stations
Types of Cover:
- Commercial Motor Vehicle Insurance: This coverage protects the tow trucks and other vehicles owned by the company against damage, theft, and accidents. It typically includes coverage for collision, comprehensive, and third-party liability.
- Public Liability Insurance: Public liability insurance is crucial for tow truck companies as it provides coverage for third-party bodily injury or property damage claims that may arise during towing operations. It protects the company against legal expenses and compensation costs.
- Carriers’ Legal Liability Insurance: This coverage is specifically designed for tow truck companies and provides protection against damage or loss to vehicles being towed or transported. It covers the company’s liability for any damage that may occur while the vehicles are in their custody.
- Workers’ Compensation Insurance: Workers’ compensation insurance is mandatory in Australia and provides coverage for employees who suffer work-related injuries or illnesses. It helps with medical expenses, rehabilitation costs, and lost wages for employees who are injured on the job.
- Business Interruption Insurance: This coverage helps tow truck companies recover financially from unexpected events that may disrupt their business operations, such as natural disasters or accidents. It provides compensation for lost income and helps cover ongoing expenses during the interruption period.
- Equipment and Tools Insurance: This insurance protects the valuable equipment and tools used by tow truck operators, such as winches, chains, and other towing equipment. It provides coverage against theft, damage, or loss of these items.
- Cyber Insurance: With the increasing reliance on technology, tow truck companies may also consider cyber insurance. This coverage protects against cyber threats, data breaches, and potential liability arising from the loss or theft of sensitive customer data.
Why do you need tow truck coverage?
Your businesses need this insurance for two main reasons:
- Compliance with law
- Financial loss reduction
Choosing the right tow truck coverage is a way to protect your assets against possible disasters, damages, and lawsuits that could hit your business.
Without the required insurance, your business will face more operational difficulties or legal problems.
How much is tow truck insurance?
It depends on:
- Type of towing: Heavy-duty tow trucks cost more than light-duty trucks. Insurance costs for large, expensive trucks are more, and the cost of coverage for an under-lift wrecker or rollback carrier is different.
- Location: Your premium rates will be higher if your business is in an urban area with high-traffic roads and frequent accidents.
- Driving history: Your premiums will be lower if you hire experienced drivers with safety records.
Why are your insurance rates going up?
Many truck owners fill claims causing insurance companies to pay more than they collect. This issue happens for the below reasons:
- The rising in accidents due to driver distraction
- Repair fees for modern vehicles are increasing day by day
- The distance of driving is further than before
To make a profit, insurers have to raise the rates of premiums, which leads to the cost of tow truck coverage being higher than before.
Tow truck consumer advice to help you manage your company’s insurance costs:
- Hiring experienced drivers with safe records
You must check your driver’s records carefully because it is the key to business growth. Young drivers under 25 sometimes can cost you more because of their lack of experience. Providing a safe working environment and salary is also a way to make them want to work for you. - Find an agent who can offer you a perfect Tow Truck Coverage
An agent with broad knowledge and experience in tow truck insurance can provide you with the best choice, and easy access to top-tier markets that offer top premium rates with optimal coverage.
Let Truck Insurance HQ – Australia’s leading insurance broker do all the work for you. Our experienced insurance experts will provide the exact coverage for commercial tow truck insurance you need at an ideal price. Contact Truck Insurance HQ on 1300 815 344 or request a FREE quote.