AUTO LIABILITY INSURANCE
What is auto liability insurance?
Liability insurance covers the damages that you’re legally required to pay someone that your business has harmed. Auto liability insurance will help you cover your legal obligation to someone that you injured in a car accident, and it will also help you cover the costs of replacing or repairing their vehicle.
There are many different types of liability insurance that your tow truck business might need. The key is to make sure that all of your bases are covered when it comes to your insurance. Some of the different coverages are...
- Bodily injury liability insurance covers the costs of medical bills and lost wages if your business causes someone bodily injury.
- Property damage liability covers the cost of damages that your trucks or drivers might do to someone else’s property while it’s not in your care, custody, or control.
- Uninsured motorist liability provides coverage for medical expenses and property damage caused by a driver without liability insurance for their car.
- Personal injury protection provides protection for drivers and passengers who are involved in an accident, no matter who was at fault. It covers medical expenses, lost income, and funeral expenses.
- Medical payments liability covers the medical expenses of the driver and the passengers, no matter who is at fault.
- Hired/Non-owned auto liability covers your employees if they’re driving a car that’s not owned by your business for business purposes. This provides bodily injury and property damage coverage.
Why do I need auto liability insurance?
Legal defense and medical bills add up quickly if someone brings charges against your business for being responsible for causing them harm. If one of your tow truck drivers caused a car accident, for example, your business would be held responsible for paying many different bills - medical bills, legal expenses, repair bills. And that's where insurance comes in. Accidents happen, and you need to make sure that your tow truck business is protected from all of the liabilities that you face every day.
How much does auto liability insurance cost?
The cost of auto liability insurance depends on many details about your business. An insurance company is going to want to take a look at the specifics of your business before they decide whether to insure you and how much to charge. Some of the factors that affect the cost of your tow truck insurance are...
- Your drivers: The age, experience, and driving records of your tow truck drivers play a role in your rates because they indicate how much of a risk your business is.
- Your trucks: The year, make, and model of your tow trucks or wreckers will affect your rates.
- Your radius of operations/Your location: Where you drive and how far you go can affect your rates.
- Your claims/losses: If your business has a history of claims or losses, that indicates that you're a higher risk. And that means you could face higher tow truck insurance rates.
- Speeding tickets: Speeding tickets also indicate risk.
- How long you've been in business: If you're an established business that's been around for a while and you have a good loss record (meaning few claims), you will most likely get lower rates than a new venture.
The only way to get an accurate idea of how much auto liability insurance will cost for your tow truck or wrecker business is to get a quote. And we can help with that. We'll help you find the best coverage at the best possible rate. All you have to do to get started is give us a call or fill out our online form - we would be happy to help with your insurance needs.
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