What exactly is a towing business? A towing business is a business where broken-down vehicles, vehicles that cannot move or are disabled need towing service or roadside assistance. Tow truck drivers must be given some appreciation for their valuable service that they render while helping the stranded driver or motorist by risking their safety as well as life. The driver of the tow vehicles should take full responsibility for the vehicles they are towing irrespective of the cost and model of the vehicle while taking it to the closet vehicle repair outlet. Every business needs protection from natural calamities and other danger; likewise, you also need to protect your towing business. This protection can come from tow truck insurance, which includes various types of insurance coverage plans.
In recent years, the tow truck insurance requirement has grown rapidly, and they are currently on huge demand. You must be thinking which all businesses require tow truck insurance? The answer is simple, and they are
- Roadside service providers
- Full-service stations
- Auto club contractors
- Auto mechanical repair
- Rotational towing
- Auto body shops
- Auto salvage and auction handlers
You should know that the towing companies will have to incur all the damages when truck drivers have vehicles in tow. That is why towing companies must take the tow truck insurance for their vehicle as well as their drivers. If any towing company fails to take this insurance, then they will have to face huge loss when any mishap occurs while towing your vehicle. Without having the tow truck insurance, the towing company will have to pay for every damage, whether in the form of money or damage to life after an accident while towing the vehicle.
The popularity of tow truck insurance requirements is growing rapidly; however, this insurance depends on a few factors. These factors comprise the type of vehicle you have, the size and shape of the vehicle, driving record of the owner, area and others. Getting tow truck insurance is expensive as the cost of insurance depends on the truck and load that is being carried. Another factor is whether the load carried by the tow vehicle is going in or out of the state.
While towing the customer’s vehicle, it is the responsibility of the tow truck driver that no harm or damage should come to the vehicle. Moreover, if any scratch appears on the customer’s vehicle, then the towing company has to pay the cost of damage. This is where having the right tow truck insurance will ensure that all vehicles are well-protected. Different insurance coverage plan that is offered in tow truck insurance are:
- Liability Insurance
It covers for the injury that is caused by a tow truck driver to other people and also covers the damage that occurs to the other party property.
- Medical Payments Insurance
It covers the medical bills of the driver as well as the passenger who is hurt in the accident.
- Physical Damage Insurance
It covers the repair cost of your truck which might have got damaged due to an accident like a collision with another vehicle, falling tree, fire and theft etc.