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Who needs on-hook insurance for towing?

Tow truck operators are responsible for moving stalled, wrecked, or damaged vehicles from one place to another. What happens if the vehicle that you are towing is damaged while in your possession? You could be liable for repair or replacement costs. (And that’s why it’s so important to get the right tow truck insurance.)

For example, let’s say that you own a garage. A customer calls you because her car won’t start. You come and tow it into the shop. However, you get into an accident on the way, and the customer’s car is damaged. If this happens, your on-hook towing coverage could help you out.

If your business offers tow truck services, then you need to consider on-hook coverage. (It is important to note that on-hook towing insurance is called Garage Keeper’s Legal Liability insurance in Virginia and Texas.)

What Does On-Hook Towing Insurance Cover?

On-hook insurance helps pay to repair or replace a vehicle that you are towing from one place to another. This insurance can cover damages from:

  • Fire
  • Collision
  • Theft

So, you can see why this is an important coverage for tow truck businesses. There are a lot of risks associated with driving and towing cars.

What Does On-Hook Insurance Not Cover?

On-hook coverage only applies to vehicles that you do not own. So, it will not cover damage to vehicles that you own. Here are some examples of situations that on-hook coverage would not cover:

  • Towing race boats for personal use.
  • Transporting your boat.
  • Towing your car behind your mobile home.
  • Transporting your antique car to a show.
  • Transporting your personal motorcycle.

On-hook insurance would not provide any compensation in the situations above if the vehicles are damaged. There is another type of insurance for these types of scenarios. For more information about the type of insurance that you would need in the above situations, contact us.

How Much Does On-Hook Coverage Cost?

On-hook insurance is very reasonable compared to the costs of liability that you could face if you damage a customer’s vehicle during the towing process. Many insurance companies offer discounts for:

  • Safe drivers – A safe driving discount could be available for drivers who maintain a good driving record.
  • Multiple policies – If you purchase multiple policies with the same insurance company, you might qualify for a multi-policy discount.
  • Good credit score – If your credit score is good, then you could qualify for a lower rate.
  • The number of years in business– Are you a trusted business that has been operating in your community for a  long time? If so, then make sure you ask about discounts.

Comparing rates can help you get the cheapest rates on on-hook coverage. It can be a pain to compare rates yourself. Fortunately, we make the process simple by doing the work for you. We’ll also help you get the tow truck insurance coverages you need. You can get started with quotes by filling out our online quote form or giving us a call. We’ll do the rest, including checking to see what discounts you qualify for and helping you get them.