Jeffrey Wade
Whether your car insurance covers towing depends on your policy, premium, and provider. Many insurance packages include roadside assistance coverage, but some limit the number of calls or tows you can have to three or four a year. If your vehicle is disabled and needs to be towed to a mechanic, your car insurance may cover towing costs. If you're involved in an accident caused by another driver, the cost of towing your vehicle may be covered under the at-fault driver's liability coverage. However, if you're found to be at fault for the accident, you may be responsible for towing expenses, depending on your coverage.
AM Insurance Towing
| Characteristics | Values |
|---|---|
| Company | Amwins |
| Division | TUMI, part of the Amwins Underwriting division |
| Type of insurance | Towing Insurance Program |
| Target customers | Professional, for-hire tow truck companies |
| Ancillary operations covered | Auto repair, body shop, salvage, storage, gas sales |
| A.M. Best rating | "A" (Excellent) Admitted & non-admitted |
| Availability | 24-hour assistance |
| Services covered | Towing, debris clearance, roadside assistance, minor and major repairs |
| Additional benefits | Free services like changing flat tires, jump-starting, free delivery and installation |
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What You'll Learn
Towing insurance for tow truck companies
The towing industry has witnessed significant growth in recent years, with an annual growth rate of 4.7% and a market size of $8.4 billion in revenue. This growth has been driven by an increase in travel and the number of vehicles on the road, leading to a greater demand for towing services and roadside assistance. As a result, the need for specialised insurance for tow truck companies has become increasingly important.
Tow truck companies require insurance that covers a range of scenarios, including but not limited to:
- Garagekeepers Legal Liability insurance: This protects the customer's vehicle when it is parked on the tow truck company's property.
- On-Hook Towing insurance: This covers the customer's vehicle while it is being towed, ensuring protection against any damage or issues that may arise during transportation.
- Tow General Liability insurance: This type of insurance covers bodily injury, property damage, or personal injury claims that may arise during the course of the tow truck company's operations.
- Liability insurance: This insurance covers injuries caused to other people and damage to their property. It includes two types of coverages, providing protection for a range of scenarios.
- Medical Payments insurance: This aspect of towing insurance covers medical bills for the driver and any passengers in the tow truck in the event of an accident or auto-related injury.
Additionally, some insurance providers offer specialised programs for professional, for-hire tow truck companies that engage in approved ancillary operations. These operations may include auto repair, body shops, salvage, storage, and gas sales. By offering tailored solutions, insurance providers can meet the unique needs of tow truck companies and ensure they are protected against financial losses and legal consequences.
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Roadside assistance and towing services
Amwins offers a comprehensive towing insurance program tailored to meet the unique needs of professional tow truck companies. Their program, underwritten by their TUMI division, addresses the specific risks and challenges faced by towing businesses, ensuring they are well-equipped to handle various roadside scenarios. This includes not only towing but also approved ancillary operations such as auto repair, salvage, and storage services.
For drivers, having reliable roadside assistance can make all the difference when facing vehicle issues. AmAssurance, for instance, provides 24-hour auto assistance and towing services for its Private Car Comprehensive Motor Insurance policyholders. This includes minor and major repairs, flat tyre changes, jump-starts, and free towing within a specified radius.
Similarly, American Family Insurance offers 24/7 emergency roadside assistance, helping stranded drivers arrange towing services, battery charging, fuel delivery, and tyre replacement. Their coverage helps pay for these services when a car breaks down or requires repairs, providing much-needed support during stressful situations.
With the right insurance coverage and reliable partners, towing companies and drivers can navigate the challenges of roadside emergencies with greater ease and confidence. These services ensure that help is always within reach, providing a valuable safety net for drivers and efficient solutions for vehicle-related issues.
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Risk management strategies for towing companies
Risk management is essential for towing companies, as they operate in a high-risk environment involving heavy vehicles, roadside emergencies, and challenging weather conditions. Here are some strategies for risk management:
Compliance and Regulatory Requirements
Towing companies should stay up-to-date with licensing requirements, safety standards, and environmental regulations. This includes complying with labor laws related to minimum wage, overtime, and employee classification. Regulatory compliance is critical to avoid legal issues, fines, and damage to the company's reputation.
Proper Equipment and Maintenance
Towing companies should ensure their trucks are equipped with the right tools for each job, including flatbed trucks, wheel lifts, and towing dollies. Regular maintenance and inspections are crucial to prevent breakdowns and accidents, extending the lifespan of the vehicles. This includes following the manufacturer's recommended maintenance schedule and conducting pre-tow inspections to identify potential issues.
Comprehensive Insurance Coverage
Towing companies should carry comprehensive insurance policies to mitigate financial risks. This includes commercial auto insurance to cover accidents, property damage, and legal costs, as well as workers' compensation insurance to cover medical expenses and lost wages for injured employees. On-hook towing insurance is also valuable, as it covers vehicles while being towed, protecting against costly repairs or replacements.
Training and Safety Procedures
Providing ongoing training to employees is vital. This includes safety procedures, equipment handling, operating in high-traffic areas, first aid, and responding to emergencies. Proper training minimizes the chance of human error and reduces the risk of injury to operators and the public.
Customer Service and Documentation
Exceptional customer service, including polite, empathetic, and efficient interactions, is essential for building trust and a positive reputation. Documenting any pre-existing vehicle damage before towing and obtaining signed releases from owners can protect against false damage claims. Clear and itemized pricing, as well as incident reports for any accidents, help prevent disputes and misunderstandings.
Disaster Recovery Plan
Natural disasters or other unforeseen events can disrupt business operations. Having a disaster recovery plan, including securing vehicles and equipment, establishing communication channels, and identifying backup resources, helps reduce risk and minimize downtime.
Technology and Data Analysis
Investing in technology, such as GPS tracking systems, telematics, and advanced security systems, can improve operations and risk management. Telematics and dash cams can monitor driver behavior and provide data to identify risky patterns, allowing for timely interventions to prevent accidents. Analyzing claim frequency and types can also help pinpoint effective risk-management strategies.
By implementing these strategies, towing companies can effectively manage risks, ensuring smoother and safer operations while protecting their reputation and finances.
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Insurance coverage for towing due to accidents
If you're involved in an accident, your auto insurance policy may cover the cost of towing your vehicle, but this depends on several factors, including your insurer, policy, and the circumstances of the accident.
Roadside assistance coverage is often included in auto insurance policies and typically provides towing services up to a specified distance. This coverage is usually optional, and not all policies are eligible for it. If you have roadside assistance coverage and your car breaks down due to a non-accident-related issue, you can file a claim to utilise this service.
In the event of an accident, your auto insurance's collision or comprehensive coverage may include towing services to your home or a body shop of your choice. This is typically applicable when your vehicle is undrivable due to accident-related damage. The combined cost of the tow and the vehicle repairs is generally subject to a deductible.
If the accident was caused by another driver, the towing cost may be covered under the at-fault driver's liability insurance. However, if you are found to be at fault, you may be responsible for the towing expenses, unless your insurance policy specifically covers such instances.
Additionally, some insurance companies, like AmAssurance, offer 24-hour roadside assistance and towing services as part of their comprehensive motor insurance policies. This includes towing to a service provider's workshop or a specified destination within a certain distance for free.
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Towing and other services like auto repair
Towing services are often offered alongside auto repair services. Many companies that offer towing services also provide auto repair services, including body shops, salvage, storage, and gas sales. These companies usually have a team of certified technicians who are equipped with the latest technology and knowledge to handle various vehicle issues.
For example, Bob's Main Street Auto & Towing offers a wide range of auto repair services, including oil changes, brake repairs, advanced diagnostics, and climate control system services. They also provide towing services 24/7 to ensure that their customers can get assistance anytime they need it. Similarly, AAA, a well-known roadside assistance provider, offers towing services and partnerships with approved auto repair facilities for more comprehensive car repairs.
When it comes to insurance, some companies, like Amwins, offer towing insurance programs specifically designed for professional tow truck companies that engage in ancillary operations such as auto repair. This type of insurance helps manage the unique risks and exposures faced by towing companies.
It is important to note that auto repair services can vary depending on the company and your specific needs. Some common services offered include minor repairs, fluid checks, wire connection checks, battery replacements, tire changes, and locksmith services. Some companies may also offer specialised services for specific car brands or engine types.
By combining towing and auto repair services, companies can provide convenient and comprehensive solutions for vehicle owners, ensuring that they can get back on the road safely and efficiently.
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Frequently asked questions
It depends on your policy, premium, and provider. Some common types of insurance coverage that may include towing are collision coverage, comprehensive coverage, and roadside assistance coverage.
Roadside assistance coverage is an optional add-on offered by most major auto insurance carriers. It typically includes towing, battery jump-starts, tire changes, and locksmith assistance. Some common insurance companies that offer roadside assistance coverage include American Family Insurance and Progressive.
If your insurance doesn't offer roadside assistance coverage, you can consider adding it to your policy or purchasing a membership program such as AAA, which offers towing services as part of their membership benefits. Alternatively, some car manufacturers offer roadside assistance with a new car, and you may be able to get roadside assistance through the dealership when purchasing a used car.
