Need Tow Truck Insurance? Fast Quotes and Great Rates Available Seven Days per Week!
When searching for tow truck insurance for your business call Pathway Insurance at 1-800-998-0662 or click on Tow Truck Insurance Quote to send us your request for information and quotes 24 hours per day.
We insure auto repair garages, dealership, and companies specializing in emergency service towing, hauling and repossession work.
Licensed agents are available seven days per week for quotes and coverage.
Tow Truck Insurance May Be More Complicated Than You Think.
Your business is your largest investment and it’s important to make sure that you have the right coverage to protect you financially.
If you are missing essential coverage from your policy that could mean the difference between the need for your company to pay a significant amount of money out of pocket versus a small deductible on your policy.
What Coverage Is Needed for Your Business?
It really depends upon the services your company offers.
For instance if you only offer emergency towing and recovery service and do not at any time keep customer vehicles it’s possible that you do not need Garage Keepers Insurance.
If you’re not sure what Garage Keepers Insurance covers click Garage Keepers Insurance to learn more.
However if customer vehicles are in your possession after being towed by your company you need Garage Keepers Insurance.
One of our licensed agents can help you know what coverage you might need. Call 800-998-0662 or click Commercial Truck Insurance Quotes to submit your request for information seven days per week. A licensed agent will call or email.
Tow Truck Insurance Policy – Coverage You Probably Should Not Skip.
Let’s consider a fictional claim scenario to learn about important coverage you probably should not skip even if you are short on funds.
Claim scenario: Patrick “Paddy” Henderson has worked for his cousin Bob for the last seven years at Big Bob’s Towing Service.
Paddy is a little envious that his cousin Bob. He lives in a big house, has at least 2 girlfriends, goes to Vegas every couple months, and is driving a brand-new Corvette.
Paddy doesn’t have time or the money for a steady girlfriend because he is only getting paid $11 bucks an hour plus he is constantly dealing with mad customers getting their vehicles repossessed, towed by the police, or dealing with hotheads who just smashed their vehicle up in an accident.
Paddy talks to his friend Jerry at the local tavern one evening about his situation. Jerry asks Paddy a simple question: ‘Why don’t you open up your own towing company?’
“Hmmm… Never thought about doing that, but that might be just the ticket.” Paddy states.
“Well how hard could it be?” Jerry asks, “shoot with all of the money Bob is making I’ll go into partners with you, how’s that sound?”
“Sounds pretty good to me, let’s do it. I can put up with a lot of nonsense from customers if I get 50% of the money.” Paddy replies.
Over drinks that evening, the Paddy and Jerry Towing Service is formed.
Paddy obviously doesn’t have any money so Jerry agrees to make the initial investment to buy a tow truck and the insurance, and he will also care for the management duties.
Paddy agrees to be the driver and he knows some of the banks to get repo work.
Paddy makes a few calls to some of the managers and promises a 25% rate reduction in their fees to take business away from his cousin Bob at Big Bob’s Towing Service, and they readily agree.
Paddy is also friends with a number of the police officers and promises free beer for city work.
Comprehensive Tow Truck Insurance Is Expensive, But Necessary.
To get started they need tow truck insurance so Paddy calls around and is a bit shocked at the price for a full insurance package.
Despite shopping around for cheap tow truck insurance the best rate they can find for the tow truck they purchased was about $10,000 per year.
Paddy talks to his partner Jerry and they decide to go with the basic coverage for now eliminating what they felt was unnecessary and upgrade later when they have extra money.
They buy the state minimum limit for their state and full coverage on the truck since they had to take a loan.
Work picks up pretty quickly for the Paddy and Jerry Towing Service Company, Paddy is making more than double what he was earning before but he is working about 75 hours per week which he doesn’t really mind because he can spend all that extra money later he figures.
Jerry made out on the deal as well because he keeps his full-time job as a police officer and handles dispatches on his work cell phone. Life is good financially for both Paddy and Jerry.
On a Saturday afternoon Jerry dispatches Paddy to pick up a brand-new BMW i3 that was just involved in a minor fender bender.
Paddy hooks up the small BMW to his tow truck and he starts heading to the dealership which is about 27 miles away.
Paddy gets on the highway traveling north and he remembered that he forgot to call Jerry to let him know where he was going. He and his business partner are chit-chatting about what a good decision it was to open up their new tow truck company.
Paddy takes his eye off the road for just one or two seconds and he did not notice, until it was too late, that all of the vehicles in front of him slowed down because of an accident.
Tow Truck Insurance -This is What Happens When Coverage Is Missing.
Paddy’s tow truck hits a cement truck in front of him as he was going about 15 mph causing a significant amount of front end damage to the tow truck and the BMW came off the lift, damaging it and the winch as well.
The BMW landed upside down on the right lane of the highway.
Fortunately the airbags in the tow truck protected Paddy from serious harm or worse but making impact with the cement truck landed him a trip to the emergency room, in addition to an overnight stay in the hospital for the concussion he sustained.
All told there was about $42,000 of damages to the tow truck, $21,712 in damages to the BMW, $5,000 in damages to the cement truck Paddy hit and Paddy’s hospital emergency room bill amounted to $19,872.
An insurance claim was submitted to Paddy’s and Jerry Towing Tow Truck Insurance Company and they paid the following amounts:
- $41,000 for damages to the tow truck (they had $1000 deductible)
- $5,000 for the damage to the cement truck
- $0 for the damage to the BMW
- $0 for the hospital and emergency room bill
Why did the insurance company not pay for the BMW or the hospital bill?
When Paddy and Jerry started their company they did not think they could afford the extra insurance premiums so they skipped on three important coverages:
- On Hook Insurance
- Medical Payments Insurance
- Workers Compensation Insurance
Skipping the above coverage ended up costing their new company almost $42,000 in out of pocket claims settlements.
Their company was doing very well financially so it did not cause them to close their business but both had to work for free for the next six months to pay for the claim.
Need Commercial Tow Truck Insurance Today?
We offer quick quotes seven days per week when you use our online rate quote request system in a number of states.
Otherwise you may call 1-800-998-0662 Monday through Friday 9 AM to 5:30 PM to speak with an authorized agent offering super competitive commercial truck insurance quotes.
Click on Commercial Truck Insurance Quotes to submit your request for online quotes seven days per week until 6 PM.
Commercial truck insurance quotes are available throughout the United States by licensed and authorized insurance agents.