How do tow truck insurance coverages work together?

So, if you have a tow truck business, you’ve probably heard it time and again: you need the right insurance to protect your business. Towing is a unique industry with a lot of risks, and that’s why having the right coverage is so crucial. There are many different tow truck insurance coverages that work together to protect your business in the event of an accident. We’ll explain how that works by going through a hypothetical accident that occurs within a hypothetical towing business

Here’s a scenario. 

Okay, so like we said, we’re creating a hypothetical tow truck business that you run. With having tow trucks on the road, anything could happen. 

Let’s say that one of your drivers is cruising along, towing a car to a mechanic’s shop. But something happens and they look away, just for a second, and accidentally run a red light. They cause a wreck. The other driver’s car is damaged, the tow truck is damaged, the customer’s car that was attached to the tow truck is damaged, the other driver is injured, and your tow truck driver is injured. 


(In our hypothetical, we’re going to say that no one was severely injured, but the other driver and your tow truck driver do need medical attention.) 

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So, how can your tow truck business get back on its feet after that? The total costs of the accident are really high. Here’s how the tow truck insurance coverages do their part to cover various expenses resulting from the accident. 

The other driver’s medical bills. 

Like we said, the other driver had some injuries from the accident and needed medical care. The bodily injury liability portion of your tow truck insurance can help cover their medical bills, and it can even cover lost wages if they need to take time off work. That’s why this is such an important part of your tow truck insurance. 

The other driver’s car. 

The other driver’s car was also damaged in the accident. The property damage liability section of your tow truck insurance can cover the costs of repairing or replacing the other driver’s car. The costs of car repairs can be really high, after all, so this is another important piece of the insurance puzzle. 

The car that was being towed.

Now, in our hypothetical scenario, the tow truck driver who got into the accident was towing a customer’s car at the time of the wreck. And the customer’s car … well, it got pretty squished. That’s where on-hook coverage comes into play. On-hook insurance can help cover the customer’s car, so hopefully that helps you explain the situation to the customer whose car is now toast. 

The tow truck. 

In the accident, the tow truck the driver was operating was also damaged. That’s where your physical damage insurance can help you. The collision coverage portion of your physical damage insurance can cover the repairs to the tow truck itself. (Comprehensive coverage is another portion of physical damage coverage, and it can cover losses like theft, fire, falling objects, and animal strikes.)

The tow truck driver’s injuries. 

If the tow truck driver was injured in the accident, workers’ comp can help cover the costs of their medical bills. (And it could also help cover a portion of their lost wages if they need time off to recover.) With workers’ comp, your tow truck driver can get the medical attention and care they need to get better. 

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So, that’s how the different tow truck insurance coverages work together in the event of an accident. It’s so important to make sure that you’re getting the proper coverage, and our team can help with that. We would be happy to help you get the coverage you need to protect your business. You can get in touch with our team by filling out our online form, giving us a call, or messaging us on LiveChat. 

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