What is wrongful repo insurance?
Repossessing cars takes a lot of courage. There are many risks involved with doing repo, and those risks make repo dangerous. That’s why it’s so crucial to make sure that your business has the right insurance coverages. You might be wondering what kind of insurance you need to repo cars or what kind of tow truck insurance you need. Along with other tow truck coverages, you might want to consider wrongful repo coverage. We’ll explain what repo insurance is and how it can protect your business. We can help you get repo insurance quotes, too.
Wrongful repo coverage will protect your business if you accidentally take a car that you’re not supposed to. You could get into major legal trouble if you repossess a car that doesn’t need to be repossessed, but wrongful repo insurance would help you cover the costs of legally defending yourself against claims of wrongful repo.
Think your business might need wrongful repo insurance? We can help. We’ll shop around for the best possible rate for your insurance, and we can get you multiple wrongful repo insurance quotes. We’ll take the time to get to know you and learn about your business so that we can best advise you on your insurance needs.
What does wrongful repo insurance cover?
There are a few things that could get you in trouble for taking a car that you’re not supposed to. Yes, it might seem a bit absurd, but taking the wrong car or a car that you’re not supposed to happens more frequently than you might think. Your business could end up in hot water if...
1. You fail to call the bank before taking a car.
It can take a while for a request to repo a car to get from the bank to you. In the time that it takes for the request to arrive in your hands, the owner of the vehicle may have made their payment. If you don’t check with the bank and repo the car, you could get in trouble.
2. You accidentally pick up the wrong car.
Wait a second. What do you mean, the car attached to my tow truck isn’t the right car?
You have to check the VIN number of the vehicle that you’re repossessing to avoid this situation. There are a lot of cars that look alike, so if you’re going by the make, model, and color alone you may end up with the wrong vehicle. The owner of the car you took most likely won’t be happy that you swiped their vehicle by mistake. Make sure to double check that you’re taking the right car.
3. You don’t have a written notice to take the car.
A verbal agreement in person or over the phone isn’t enough. You need to have the request in writing or you’re at risk of getting in trouble for wrongful repo.
How do I calculate what percentage repo I am?
If you do under 5% repo, your rates may be fairly similar to what you’d pay if you did no repo at all. If you do more than 50% repo, an insurance company will probably see you the same as if you did 100% repo. And that means that you could see a 100% increase in your rates over what you’d pay if you didn’t do any repossessions.
When an insurance agent asks what percentage of repo you are, calculate the percentage based on the number of tows you do, not the amount of money you bring in from your various jobs. Insurance companies want to see the number of jobs, not the earnings from those tows, because repos usually pay much better than regular, ordinary tows. So, let’s say that you do 50 tows in a month and eight of those are repos. You would be 16% repo.
Get multiple wrongful repo insurance quotes.
Our team of tow truck insurance experts can help you get wrongful repo insurance quotes so that you can get some peace of mind knowing that your business is protected. They’re pros at insuring tow trucks, and they’re also really good at making insurance easy. We know tow trucks and we understand the coverages that you need to protect your business. And we can help you get the best possible rate. All you have to do to get tow truck insurance quotes is fill out our online form or give us a call today - either method of communication is fine with us!