Common Mistakes When Purchasing Tow Truck Insurance

Insurance coverage is essential for larger vehicles and especially tow trucks. With so many options at your disposal, it can feel a little overwhelming. The insurance costs tend to be very high due to the risks involved in the towing industry. The injury and accident rate is quite high, to say the least. Here are a few mistakes that you should avoid when choosing your tow truck insurance.

Not Doing Enough Research

This is possibly the biggest mistake that you can make when you’re looking for an insurance provider. Make sure that you do enough research on your intended policy and the insurance company that you will be working with.

Proper research will ensure that you get the best coverage for your vehicles. Researching the carrier and their history will show you a lot about how well they handle claims. You should check up on their experience, history with customers, and if they have misrepresented their clients.

Choosing the Wrong Deductible

For the most part, this point carries over from the previous one. If you don’t do your research, you will not know the right deductible for you. Since customers sometimes choose deductibles that are either too low or too high, they can run into some trouble.

Lower deductibles mean that the premiums are much higher, which can be a problem for your business. By choosing the right deductible, you will be able to strike the perfect balance between paying premiums and getting good coverage.

You Didn’t Ask About Discounts

Discounts are a great way to save some money on your insurance plan without there being any other catch. Of course, insurance agents rarely bring something like that up, but they cannot deny giving you a discount if you qualify for one. Ask them about the discount policies and ask them if you can qualify for one.

It’s also important to remember that different carriers offer vastly different discounts. The requirements for the discount and the amount will vary depending on the insurance provider. Again, this comes down to research.

Garage Liability Insurance

Garage liability insurance is the type of policy that most will overlook because of its name. Now, why would you need garage liability insurance, especially if you don’t have a garage? The answer is if the vehicle you’re hauling gets damaged you could be held liable.

These damages usually involve people who fall into some sort of accident with your vehicle. In these cases, your company will legally have to pay for the damages. Garage liability insurance can help you avoid having to pay these damages. It can be quite useful and can help your company escape a very dangerous lawsuit.

Summing Up

Tow trucks are heavy vehicles that can get into a lot of accidents. But with the right kind of insurance coverage, you can easily make up for these damages. Just be sure to contact your insurance agent and ask for their advice on the best coverage for your business.


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