One of the reasons that you have tow truck insurance (specifically auto liability insurance) is so you can take care of your legal obligation to someone that you injure or whose property you damage in an accident. Your insurance will help you cover the money you owe to that person. But what if someone hits your tow truck and doesn’t have the insurance to cover their legal obligation to you? Well, that might not be good. However, there is a solution you can consider – uninsured motorist and underinsured motorist coverage (a.k.a. UM/UIM coverage.)
What’s uninsured motorist and underinsured motorist coverage? We’ll explain what this coverage is and why you might want to make it a part of your tow truck insurance plan.
What is uninsured motorist coverage?
Uninsured motorist coverage protects you if you’re hit by a driver who does not have insurance to help you cover your medical expenses. It can even help with the repairs to your tow truck if that coverage is available in your area. The coverage applies if the other driver is at fault in the accident. So, if you were in an accident caused by a driver without insurance, you’d still be covered by your insurance.
Here’s a sample scenario:
You’re on your way to pick up a disabled vehicle on the side of the road. You go through an intersection, but a big SUV runs a red light and hits you. You have a concussion and a broken arm…but the other driver doesn’t have insurance.
What is underinsured motorist coverage?
Underinsured motorist coverage will help you if another driver is at-fault in an accident but does not have enough insurance to completely cover your medical expenses.
Here’s an example of underinsured motorist insurance in action:
You’re on your way to help a driver who has a flat tire. A car traveling in the opposite direction veers over the double yellow line and into your lane. They collide with you. Your truck is totaled and you have to spend quite a while in the hospital to recover from your injuries. The other driver only has the minimum level of car insurance, so they don’t have enough coverage to take care of all of your expenses.
Pro tip: It’s a good idea to review what to do if you’re involved in a car accident so that you’re prepared.
What if I’m in a hit-and-run accident?
Uninsured motorist and underinsured motorist coverage can also protect you if you’re involved in a hit-and-run and the driver that struck you takes off. Since they didn’t stop, you don’t exactly have their insurance information, name, or license plate number. But your UM/UIM insurance can help you cover your medical expenses.
You can control your own actions and the amount of insurance that you carry for your tow trucks, but you can’t control the actions of the drivers that you share the road with. That’s why you might want to consider whether or not uninsured motorist and underinsured motorist coverage is right for you. It will cover the expenses of your medical bills if you’re hit by a driver without insurance or without enough insurance to fully cover their legal obligation to you. It can also protect you if you’re in a hit-and-run. If you think this would be a good coverage to carry, talk to your insurance agent today.
And if you want to save money on your tow truck insurance, we would be happy to help with that. Our team of insurance experts can help you shop for the best tow truck insurance at the best rate. Since we’ve worked with lots of towing businesses just like yours, we understand the risks you face and the coverages you need to protect you from them. Get started with your insurance quotes by filling out our online form or calling us today.