Tow Truck Insurance from Massachusetts Specialists

What is Tow Truck Insurance?

Operating a tow truck requires a sizeable investment and involves considerable risks. Tow truck operators must consider the risks they face and protect their investment whenever possible. Tow truck insurance can play an important role in protecting Massachusetts wreckers from loss and liability.

Tow truck insurance is specialized commercial insurance for tow truck operators. Policies normally come as package policies that combine coverages together, which allows the insurance to protect against many of the risks that wreckers face.

What Massachusetts Businesses Should Carry Towing Insurance?

Most Massachusetts businesses that provide towing services are required by state law to have minimum levels of towing insurance in place. In many cases, operators choose to purchase more coverage than is legally required so they’re better protected. 

Some examples of businesses that might need this insurance include:

• Traditional tow trucks and wreckers
• Auto repair shops that have tow trucks
• Independent operators who own tow trucks

Car transport companies may also find that this insurance suits them well, although some transport companies will be better served by a different commercial insurance policy. An insurance agent who specializes in towing insurance can help transport companies determine what insurance is best for them.

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What Coverages Does Towing Insurance Make Available?

Towing insurance can provide a range of coverages, offering a variety of standard and optional protections. Some of the more common coverages that towing operators might want to look for are:

• Physical Damage Coverage, which may protect a tow truck against damage occurring in accidents and some other incidents
• Comprehensive Coverage, which may protect a tow truck against damage occurring in non-accident incidents
• On-Hook Towing Coverage, which may protect against damage to vehicles when they’re towed
• Garage Service Coverage, which may protect against damage to towed vehicles if they’re in storage
• Tow Truck Liability Coverage, which may protect against injuries and damage that an operator is liable for
• Medical Payments Coverage, which may protect against injuries that occur during an accident
• Underinsured and Uninsured Motorist Coverage, which may protect against accidents that improperly insured drivers cause

Policies may offer still more coverages, which some tow truck operators might want.

Do Towing Policies Come With Workers Compensation Coverage?

Workers’ compensation coverage generally protects against workplace injuries, and this is an obvious concern when operating a tow truck. Most Massachusetts businesses that employ workers are required to carry the coverage.

Not all towing policies offer workers compensation among their standard and optional coverages, though. Although some may, many others leave operators to purchase the coverage through a separate policy. An insurance agent who assists with towing policies can also help find a worker’s compensation policy.

How Much Are Premiums for Towing Policies?

Towing policies are largely affordable when considered in light of a potential claim’s cost, but premiums for policies do vary. The following details are some of the items that frequently impact rates:

• Year, make and model of truck(s)
• Operators’ past driving records
• Roads that trucks tow from
• Types of vehicles that are towed

An independent insurance agent can help operators find out how much insurance will cost them. Independent agents are free to compare policies from multiple insurance companies, which makes it easy to select the right policy based on coverages and premiums.