Owning a tow truck business can be a big responsibility as it can either make or break your success. While having a Texas tow truck business would certainly give you the opportunity to be your own boss and allow you to have flexibility in your time, this kind of business also comes with so many risks.
The good news is that there is a solution to mitigate these risks and avoid losing money from your tow truck business. By getting the right type of tow truck insurance coverage, you are protecting your Texas tow truck business as well as yourself and have a better chance towards success.
Getting Tow Truck Insurance in Texas
Handling a tow truck business is already very stressful by itself and you would probably want to spare yourself from further stress as you purchase the right tow truck insurance. In order to save money as well as time, going to the right insurance agency could be the best option as they can assist you in finding the right insurance coverage for your tow truck company.
By going to an insurance company, you will be able to ask about commercial auto as well as to inquire about a tow truck insurance quote. This way you can have an idea of how much a certain type of coverage can cost you.
Getting the right insurance for your tow trucks is very important because you want to be protected from any type of claims that might come your way. With this, an insurance company can help you find the right insurance for your tow truck business.
Because drivers of tow trucks are much at risk in terms of work-related injury or accident, getting workers’ compensation insurance is something that you should highly consider. Insurance companies that provide tow truck insurance in Texas have great expertise on this matter and can offer you many various types of coverage.
Through insurance agents, you also have the option of creating customized tow truck insurance that will perfectly suit your business. By building your own insurance policy, you can be more assured that your tow truck business is well-covered.
Under Texas law, a minimum amount of coverage for liability insurance is required for all commercial tow truck owners and drivers.
Types of Texas Tow Truck Insurance
Tow truck businesses need certain types of coverage such as liability insurance, comprehensive policies, medical payments coverage, physical damage coverage, garage service protection, on-hook insurance, underinsured or uninsured motorist protection, etc.
Liability insurance will cover bodily injury or property damage that is caused to other people by you or your driver. If your tow truck company is in Texas, you should have a minimum of $15,000 to $30,000 for this kind of coverage so it may also cover legal costs in case of a claim.
Comprehensive policies will protect you from damage that is a result of a non-collision. This includes if you are a victim of a certain natural disaster, vandalism, or if your vehicle catches on fire. Medical payment coverage on the other hand covers your medical costs if you suffer from an injury or an accident while on the job.
Physical damage coverage is a type of protection that will cover the damage to your vehicles regardless of who is at fault. Garage service protection will protect your truck from losses as a result of collision, fire, theft, or vandalism while it is stored or parked in a covered area.
On-hook insurance will save you from loss and damage due to vandalism, theft, collision, explosion, or fire when it is being towed. Uninsured or underinsured motorist protection saves you from costs due to other people’s fault who are either not insured at all or do not have sufficient coverage.
How Much Does a Tow Truck Insurance in Texas Cost
A tow truck insurance can cost you as low as $97 per month but the amount really depends on many different factors. Insurance agents can provide you with insurance quotes so you can decide which amount you would be comfortable with but would still give you maximum coverage.
The amount of your premium depends on the type of trucks that you own as well as your country of residence and it will also be based on your driving records and your employees’ and if your tow truck company provides other services apart from towing such as if you are operating a service station or offering mechanical services.
To get the best deal for your tow truck insurance in Texas, it is best that you shop around from different insurance companies and talk to different insurance agents about various coverages and policies that would perfectly fit your business.
A tow truck insurance usually comes with a business insurance policy and liability insurance such as garage keepers coverage. If you are getting tow truck insurance, be prepared to pay between the ranges of $4,000 and $15,000. The amount varies based on the number of vehicles that you own and what type of companies you have.
To cite an example for the average costs of tow truck insurance, general towing businesses and recovery services may cost around $4,500 while body shop or auto repair could be around $7,500. Repo businesses may cost about $10,000 and roadside assistance service could be about $11,500.
How does Insurance calculate the cost of Tow Truck Insurance
Calculating for a tow truck insurance is based on the risk that is involved in your business as well as other different factors. This may include the area of your property if the location has high accident rates or if it is an urban area, the premium may be higher than the regular rate.
The kind of vehicles that you have would also be a factor to be considered. Are your trucks light, medium, or heavy? or do you own a rollback carrier or an under-lift wrecker? The bigger the vehicle means more cost to insure.
Your hours of operation would be an aspect to include as well. Do you only operate from 8 am to 6 pm or 24/7? The kind of things included in your towing would also be noted which means that if you are towing expensive vehicles, then your premium would also be more expensive.
The cost of your tow truck insurance would also be based on your safety programs. These programs are typically required by federal and state laws.
For you to get the best tow truck insurance, call some insurance agents and inquire about the different coverages that they offer. Remember to always ask for those insurance quotes for free.
Commercial Auto Coverage