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What does a garagekeepers policy cover?

Do you own a garage and operate a tow truck? If so, then you might need a garagekeepers policy. Garagekeepers insurance policies provide protection for a vehicle while it is in your garage. It protects the customer’s vehicle while it is parked or stored at your location. Covered events can include:

  • Collision
  • Fire
  • Theft
  • Vandalism

Garagekeepers liability is sometimes confused with on-hook coverage. Generally, on-hook coverage applies when the vehicle is attached to your tow truck. Garagekeepers insurance applies when the vehicle is in your garage or storage facility.

(To make things confusing, on-hook towing insurance is referred to as garage keeper’s legal liability insurance in two states — Texas and Virginia. So, in those two states, garagekeepers insurance refers to on-hook coverage. What is known as garagekeepers insurance in the other states is actually called storage location insurance in Virginia and Texas.)

When we talk about garagekeepers insurance here, we are referring to the insurance that covers vehicles located inside your garage or storage facility. So, what does garagekeepers cover? Who needs garagekeepers insurance? We’ll explain.

Who needs garagekeepers insurance?

Any business that transports or stores vehicles should have this coverage. For example, if you own a body shop and store customer’s vehicles at your location, then you need this insurance to protect yourself from risk.

A garagekeepers insurance policy kicks in and pays for damages to a customer’s vehicle that result from fire, theft, vandalism or extreme weather while the vehicle is stored at your location. So, if you tow a vehicle to your garage and someone breaks into the garage in the middle of the night and steals the vehicle, this insurance coverage would kick in and pay for damages to the auto.

Does garagekeepers provide protection while the vehicle is on-hook?

No, for on-hook coverage, you would need to make sure that your policy includes on-hook coverage. Otherwise, you will be responsible for damages to the auto while it is on-hook. (Like we said, it’s really important to make sure that you have the right insurance for your business.)

How to find the right insurance for your tow truck business.

The differences in types of coverages for a tow truck business can be confusing. The coverage will vary depending on what type of insurance you select, your limits, and deductible. Here are some tips to help you find the right coverage.

  • Compare quotes – Comparing multiple tow truck insurance policies and quotes will help you find the right coverage for your needs at a price that fits your budget.
  • Talk with knowledgeable insurance representatives – If you are still not sure what type of coverage you need, then talk with our helpful representatives. They have special expertise in truck insurance and can help you find the right policy for your needs.

There are so many things to consider when buying tow truck insurance. If you still have questions about your insurance coverage options, contact us today by filling out our online quote form or give us a call. Our team of tow truck insurance experts would be happy to help you get the insurance you need to protect your business.