Handling something as big and precise as a tow truck means you don’t want to slide by on coverage. So, here are some tips on how to get tow truck insurance that doesn’t suck.
How to Get the Best Tow Truck Insurance
Research your carrier and your policy
Make sure the carrier you’re dealing with is financially stable, has good reviews, and has a LOT of experience with tow truck insurance specifically. Also, READ YOUR POLICY. Make sure it actually covers what you need it to.
Know what your liability insurance covers
Also note that your auto liability doesn’t cover damage to your truck in an accident – just the other car’s. Your truck has to be covered by physical damage insurance. So, unless you want to pay thousands for a new tow truck, don’t stop at auto liability coverage.
Get Garage Liability insurance (Yes, even if you don’t have a garage)
Say you do roadside assistance, and you change a tire. The tire wasn’t secure, and the car wrecks about a mile down the road. You could be held liable since you’re the one who changed the tire. So, avoid paying out of pocket for the mishap, and get. garage. liability.
Pick the right deductible for you
There’s a balancing act that happens between your deductible and your premium. Usually, a higher deductible means a lower premium. It also means that you’ll have to pay more out-of-pocket before your insurance kicks in. So, choose this balance wisely.
Ask about payment plans
You don’t have to pay all of your premium all at once. You may get a discount for it, but if it’s not in your budget, go with the payment plan.
Ask about discounts
Ask and you shall receive! Most carriers offer discounts for things that your business already does.
Know that repo percentage means per job, not in revenue
If you also do repo, your insurance agent’s going to ask about the percentage of repo work you do. THIS IS NOT HOW MUCH MONEY YOU EARN FROM REPO. Think of it as how many calls you get to do repo work.
Different insurance companies look at risk differently and may quote you at different rates. So, going with the first option you find may not be the best idea.
That last step might be the last thing you want to do. We get it – you’re running a business. That’s why we want to help out. Click on the chat bubble in the bottom right-hand corner so our experts can start getting you the quotes you need.