If you have a tow truck business, you’re probably wondering what kind of insurance you need to tow cars. Is just having auto liability insurance enough, or is there other insurance you need? One coverage that you might want to consider to protect your business’s bottom line is physical damage insurance. But what exactly is that, and why do you need it for your Atlanta tow truck business? We’ll explain what physical damage insurance is and why it’s important to think about when considering insurance for your business.
What is physical damage insurance?
Physical damage insurance is the coverage that can help you get your tow truck back on the road following an accident or another loss. Basically, if your tow truck gets smooshed, scratched, squashed, or otherwise damaged, your physical damage insurance helps with the repairs (or, in dire circumstances, replacement) of your vehicle.
The thing to keep in mind about tow truck insurance is that auto liability insurance won’t cover the repairs of your tow truck. If you’re at-fault in an accident, liability insurance pays for expenses like the other driver’s medical bills and car repairs – and it can help cover your legal expenses if you get sued over the accident. It protects the other driver…not your vehicle.
Bodily injury liability helps cover the other driver’s medical expenses. Property damage liability helps cover the repairs or replacement of the other driver’s car (or other property you might damage.)
Moving on, physical damage insurance consists of two parts: collision coverage and comprehensive coverage.
What is collision coverage?
Collision coverage helps you repair or replace your tow truck if you’re in an accident (or if you collide with something else, like a tree or telephone pole.)
You’re driving along on the way to help a driver whose car has broken down. On the way there, you accidentally run a red light and get into an accident. Fortunately, everyone is fine, but your tow truck is pretty smashed. Your collision coverage can help you cover the repairs.
What is comprehensive coverage?
Of course, getting into an accident isn’t the only way your tow truck could come to harm. If your truck is damaged by something other than an accident, comprehensive coverage helps you cover the repairs or replacement of the tow truck.
Covered losses can include…
- Animal strikes
- Falling objects (i.e. trees)
To give an example, let’s say that you park your truck outside in the yard. You happen to be located in a spot that’s near a lot of trees. That night there’s a surprise storm that knocks down a bunch of the aforementioned trees…and a huge tree branch crash-lands right into your tow truck. Which now resembles a pancake. Comprehensive coverage can help you repair the truck and get it back on the road.
Why is physical damage insurance important?
So, here’s the deal:
If you run a tow truck business, you’re kind of dependent on, well, your tow trucks. You can’t have a tow truck business without vehicles. If something were to happen to one of your trucks – for example, you get into an accident that’s your fault or your truck gets stolen out of your yard – you would need to get that tow truck either repaired or replaced and back to work. You need all of your trucks operating to protect your bottom line and keep your business running smoothly.
The only problem is that tow trucks are expensive. That’s why having the proper coverage for your tow trucks is essential. Those trucks are a major investment, and physical damage insurance is a crucial part of protecting that investment. If you only carry auto liability insurance, you would not be financially protected if something happened to your tow truck – meaning that the repairs or replacement of your truck would fall on your shoulders.
So, that’s what physical damage insurance is and how it can protect your bottom line and your business’s finances. Collision insurance helps you repair or replace your tow truck if it’s damaged in an accident. Comprehensive insurance helps you repair or replace your tow truck if it’s damaged by a loss other than an accident, such as a fire, falling trees, animal strike, vandalism, and theft. When you’re getting Atlanta tow truck insurance, be sure to consider physical damage insurance for your business.
To get started with tow truck insurance quotes, fill out our online quote form or give us a call. We can help you get great tow truck insurance at a great rate by getting quotes from multiple insurance carriers.