Not-For-Hire Insurance: A Must for Private Tow Truck Operations

When it comes to insuring your towing business, there are various options available, one being not-for-hire tow truck insurance. But what exactly does not for hire mean, and what sort of protection does this policy provide?

In this blog post, we’ll look more closely at not-for-hire tow truck insurance as well as the coverage options available.

What Does Not-For-Hire Mean?

A tow truck that is not-for-hire isn’t utilized for commercial purposes, like picking up stranded vehicles and transporting them to a repair shop. Instead, they’re often employed by a private company or an individual for personal use. For instance, they can be used for towing vehicles on private property, fleet management, repossessing vehicles, and so forth.

Not-for-hire insurance is primarily designed to cover the risks connected with these types of usage, as opposed to the dangers associated with running a standard commercial towing business.

Navigating Not-For-Hire Tow Truck Insurance: What You Need to Know

There are a few essential coverage options that are widely offered with not-for-hire tow truck insurance.

Third-party claims for property damage and injuries prompted by a tow truck or its driver are covered under liability insurance. This coverage is frequently required for non-hire tow vehicles. Many insurance plans may also offer collision and comprehensive coverage, which can assist in covering repairs to the tow truck if it’s damaged in an accident or other covered incidents such as vandalism, theft, or fire.

Medical payments coverage is an additional option that could be added to a not-for-hire tow truck insurance policy. If you’re injured in an accident, it could help compensate for medical bills incurred as a result. Lastly, this coverage kicks in regardless of who’s at fault in the accident.

Another optional policy that can be added is uninsured/underinsured motorist coverage. It can protect you and your passengers if you’re hurt by a driver who doesn’t possess insurance or doesn’t have sufficient insurance to cover the losses. This coverage can help with covering medical expenses, loss of income, and other expenditures incurred as a result of an uninsured driver.

For further details on how much is tow truck insurance.

Bottom Line

To summarize, not-for-hire tow truck insurance is essential for any individual who owns and operates a non-commercial tow truck. They’re instead used for personal or internal company functions.

As a not-for-hire tow truck operator, it’s critical to understand your coverage options and how they differ from those who are providing their services to the general public.

Talk with one of our towing insurance professionals to ensure you have adequate insurance in place. One of our professionals can tailor a policy to fit your individual needs. Give us a call today for a free tow truck insurance quote!


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