Tow Truck Insurance Texas

Regarding towing, it’s essential to keep safety in mind for truck drivers and other road users. Towing in hazardous conditions can be risky, so taking all necessary precautions is essential. It’s also worth noting that insurance coverage may not cover all potential risks, so it’s best to err on the side of caution. However, tow truck insurance can offer Texas towing operators crucial financial protection if something goes wrong. Towing truck insurance is designed specifically for towing companies. Policies further help protect tow trucks, the vehicles they tow, and the individuals and businesses who own them.

Tow Truck Insurance Texas

Tow trucks meet particular challenges and risks, requiring insurance. Conversely, operating a tow truck company is not without its risks. Therefore, it’s wise to invest in comprehensive tow truck insurance. With these choices, you may construct a policy that fully addresses your requirements.

Owners and operators of commercial tow trucks are responsible for the safety of their drivers, clients, and the vehicles being towed. To keep the business safe, they require particular sorts of coverage. Not to mention the legal obligation to maintain general liability insurance. Here are several businesses that need commercial tow truck insurance:

Auto repair shops
Automobile mechanical repair
Roadside service providers
Towing by rotation
Full-service stations

What Isn’t Covered by Tow Truck Insurance?

The following are some standard exclusions from commercial tow truck insurance:

Intentional Losses

Tow truck insurance does not cover damages or injuries caused by willful harm to another person or property.

Damages Exceeding Policy Limits

Each insurance policy has a maximum limit, and any further damages beyond the coverage limit are not covered.

Certain Cargo Types

Among them are jewelry, wine, tobacco, money, explosives, and pharmaceutical items.

Protection for Towing and Storage

Tow truck insurance includes the following coverage:

Garagekeepers legal liability insurance: protects your clients’ vehicles while parked on your property.
On-hook towing insurance: This insurance protects your customers’ automobiles while you are towing them.
Towing general liability insurance: Likewise, this protects you if you are legally accountable for bodily harm, property damage, or personal injury unrelated to your insured cars.

How Does Tow Truck Insurance Texas Work?

Tow truck insurance in Texas is designed to protect tow truck drivers, their vehicles, and the property they tow. It can also protect tow truck companies from liability claims. Liability insurance, comprehensive policies, medical payments coverage, physical damage coverage, garage service protection, on-hook insurance, underinsured or uninsured motorist protection, and other types of coverage are required for tow truck operations.

Liability insurance will cover bodily injury or property damage caused by you or your driver to others. Furthermore, if your tow truck firm is located in Texas, you should have a minimum of $15,000 to $30,000 in coverage to cover legal costs in case of a claim.

Your comprehensive insurance will pay for damage resulting from a non-collision. This includes being a victim of a natural disaster, vandalism, or having your vehicle catch fire. On the other hand, medical payment coverage covers your medical expenses if you are injured or have an accident on the job.

Physical damage coverage is a type of insurance that covers vehicle damage regardless of who is at fault. Garage service protection will cover losses caused by a collision, fire, theft, or vandalism while your truck is stored or parked in a covered location.

On-hook insurance protects you against loss and damage caused by vandalism, theft, collision, explosion, or fire while the vehicle is towed. Uninsured or underinsured motorist coverage protects you from costs incurred due to the negligence of others who are either not insured or do not have adequate coverage.

Note: All tow truck drivers in the United States are required by federal law to carry auto liability insurance, and some states also require medical payment coverage. 

If your tow trucking company employs people, you should consider investing in workers' compensation insurance to cover medical bills for injuries.

Tow Truck Insurance Texas Cost

A tow truck insurance policy can cost as little as $97 per month, but various criteria determine the cost. Insurance agents can present you with insurance estimates so you can select which quantity is comfortable for you while providing you with maximum coverage.

Your country of residence and the type of truck you own will determine your rate amount. Additionally, it depends on your driving history and that of your employees, as well as whether your tow truck company offers services besides towing, such as running a service station or offering mechanical services. To obtain the best bargain on Texas tow truck insurance, shop from multiple insurance companies and speak with insurance agents about various coverages and policies that would adequately fit your business.

Tow truck insurance typically includes a business insurance policy and liability insurance, such as garagekeeper coverage. If you want tow truck insurance, expect to pay between $4,000 and $15,000. The sum varies depending on the number of vehicles you possess and the type of business you run.

To give you an idea of the usual cost of tow truck insurance, general towing and recovery services may cost roughly $4,500. In contrast, body shop or auto repair services may cost around $7,500. Repo companies may cost about $10,000, and roadside assistance services may cost around $11,500.

Cheapest Tow Truck Insurance

The typical monthly cost of tow truck insurance for most towing businesses amounts to $448, resulting in a yearly price tag of $5,376 for a general liability coverage of $1 million.

According to eastinsurancegroup.com, tow truck liability insurance can range from $300,000 to $1 million. Tow truck insurance costs an average of $450 per month.

Every business is unique and requires unique coverage to defend itself from threats. Just as your tow truck company is distinct from the one down the street, insurance providers consider numerous aspects when calculating the cost of your tow truck insurance:

The number of trucks that must be insured
Size, age, model, and condition of your truck
Anyone who will be driving the vehicle’s experience and driving record
Your annual coverage and the routes you’ll take
The types of loads you will transport

When estimating the cost of tow truck insurance, remember that the insurance company will consider the factors listed below when determining your premium price. These are the criteria that determine your risk, and they are as follows:

Your company’s location
The kinds of vehicles you own
The type of cargo you tow
The hours of operation
The kinds of safety programs you use

How Can You Reduce Tow Truck Insurance Costs?

There are various options for lowering your tow truck insurance cost, including:

1. Full payment of the annual premium

2. Bundling insurance coverage

3. Having a substantial deductible

4. Employ drivers with a clean driving record.

5. Using risk management methods

How Much Is Tow Truck Insurance Per Month?

The typical monthly tow truck insurance cost varies depending on your business type. Towing is lucrative, but you may spend money on damage control if you don’t protect your firm against significant repercussions. A trained insurance professional with towing industry experience can assist you in navigating the processes involved in purchasing the correct insurance coverage.

Tips:

Going to a Texas business insurance provider will allow you to inquire about commercial auto insurance and a tow truck insurance quotation. This will give you an estimate of how much a specific sort of insurance will cost you.

Tow truck insurance is calculated depending on the risk associated with your business and other considerations. If the location of your property has a high accident risk or is in an urban region, the premium may be greater than the usual rate.

The type of vehicles you own will also be taken into account. Is the weight of your truck light, medium, or heavy? Do you have a rollback carrier or an under-lift wrecker, for example? The higher the cost of insurance, the larger the car.

Your operating hours would be another consideration. Do you solely work from 8 a.m. to 6 p.m., or do you work around the clock? The items included in your towing would also be recognized, implying that your premium would also be higher if you tow valuable automobiles.

Your safety programs will also influence the cost of your tow truck insurance. Federal and state legislation frequently mandates these programs.

What Do I Need to Operate a Tow Truck in Texas?

Tow truck operators (drivers) must hold one of the following licenses: To operate a tow truck with an incident management permit, you must have an incident management license. An incident management license holder may drive a tow truck on private property or consent to a towing permit.

Who Regulates Towing Companies in Texas?

Towing and storage companies in Texas must be licensed. Use the Texas Department of Licencing and Regulation Licence Data Search to see if they have a license. Within 14 days following the tow, request a hearing in justice court.

Do You Need a CDL to Drive a Tow Truck in Texas?

The tow truck and vehicle are treated like any other powered unit, pulling a non-powered unit for CDL purposes. If the tow truck’s GCWR is 26,001 pounds or more and the towed vehicle exceeds 10,000 pounds GVWR, the driver must have a Class A CDL.

Who Has the Best Commercial Truck Insurance?

It’s tough to say who offers the best commercial truck insurance because many variables exist, including the firm’s size, the type of trucks being towed, and the quantity of coverage required. However, Progressive ranked best among commercial truck insurance carriers in Texas.

Can a Tow Truck Driver Carry a Gun in Texas?

With limited conditions, someone in Texas can transport a handgun in their vehicle or a vehicle “under the person’s control” if they are otherwise permitted to possess a firearm. If the weapon is in “plain view,” the owner must be over 21 or have a Licence to Carry (LTC), and the firearm must be in a holster. House Bill 1927 eliminated the requirement for a License to Carry (LTC) to keep a pistol visible inside a vehicle.

In general, eligible individuals can transport a handgun in their vehicle or a vehicle “under the person’s control” in Texas. They must otherwise be permitted to possess a handgun.

Why Is My Commercial Insurance So High?

One of the primary reasons for the high cost of business insurance is that businesses are at increased risk. Your place of business sees far more people than your home. All of those consumers, vendors, and workers mean more potential claims.

See: Commercial Truck Insurance Companies: Top 7 Best in 2023

What State Has the Cheapest Commercial Truck Insurance?

Mississippi has the lowest commercial trucking insurance premiums of any 50 states. The amount of freight the truck will carry and the firm’s travel radius determine the minimum coverage Mississippi owner-operators are required to have.

Are Older Trucks Cheaper to Insurance?

Insurance rates for vehicles at least five years old tend to be lower due to the increased availability of body components. After approximately 15 years, there is a deterioration of body parts.

Are Trucks a Lot to Insure?

Trucks have higher insurance rates than smaller vehicles, like sedans.

Conclusion

Since a variety of businesses operate tow trucks, many of them purchase towing policies. Police departments, independent mechanics, standard wreckers, heavy-duty wreckers, and vehicle service centers frequently buy these plans. Other companies may also purchase towing coverage.

Are you still confused about tow truck insurance, or do you need assistance obtaining an appraisal for your company? Contact a specialist today to receive all the information you need quickly and for free!

Tow Truck Insurance Texas Services; 2023 Guide

Tow Truck Insurance Texas