Tow Truck Insurance
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Tow truck insurance
Tow truck commercial insurance NZ
Tow truck insurance, as the name suggests, is a type of insurance specifically tailored to meet the unique needs of tow truck operators. Just like any other vehicle on the road, a tow truck is exposed to the potential risks of accidents, damage, and theft. Tow truck insurance, however, extends beyond basic vehicle coverage. It often encompasses protection against liabilities that arise from vehicles in tow, equipment damage, and even personal injuries to third parties.
Why is tow truck insurance important?
Tow truck insurance is vital for several reasons. Foremost, towing businesses face specific risks inherent to their operations. Whether it’s the potential of damaging a car being towed, an accident caused during the towing process, or equipment breakdowns, the financial implications can be substantial. Insurance provides a safety net, ensuring that tow truck operators are not overwhelmed by unforeseen expenses or legal implications.
In New Zealand, the average cost of tow truck insurance typically ranges between $150 – $300 per month.
It’s crucial to have tow truck coverage if your business:
- Operates on busy streets
- Tows high-value vehicles
- Uses specialized towing equipment
- Faces potential third-party injury claims
What covers are typically included in tow truck insurance?
Truck Insurance
Protects tow trucks. It covers accidents, damages, and injuries related to the vehicle while it’s being used for business activities.
Best For
- Repair costs
- Third party damages
- Injuries
Loss of use
Coverage that helps when your vehicle is unusable due to an accident. It covers the cost of a temporary replacement vehicle, so you can still get operate your business whilst it is being repaired.
Best For
- Temporary vehicle
- Reimbursement expenses
- Accident downtime
Public Liability
This policy covers common tow trucking business risks including bodily injuries, customer property damage, and advertising injuries.
Best For
- Business Accident Coverage
- Third-party Damages
- Legal Cost Protection
Carriers Liability Insurance
Carrier’s liability insurance in New Zealand covers tow truck operators for their liability when goods they’re transporting for customers are lost, damaged, or delayed.
Best For
- Goods damage
- Transit loss
- Theft
Management Liability
Management liability insurance in NZ shields tow trucking company leaders from legal and financial risks due to their managerial responsibilities.
Best For
- Directors liability
- Employment disputes
- Legal defence
Statutory Liability
This cover is a type of protection that helps tow trucking businesses cover costs if they accidentally break certain laws or regulations.
Best For
- Unintentional breaches protection
- Legal costs
- Fines and penalties
How much does tow trucks insurance cost?
Tow trucks insurance premiums are calculated on several different factors including:
- Types of cover
- Turnover
- Location
- Claims History
Tow truck insurance in NZ typically costs between $150 to $300 per month
Who needs tow truck insurance?
Any business or individual operating a tow truck in New Zealand needs tow truck insurance. This includes:
- Independent tow truck operators
- Towing companies with multiple vehicles
- Roadside assistance providers
- Mechanic shops offering towing services.
- Repossession services
No, insurance is not mandatory for vehicles, including tow trucks, in New Zealand. However, considering the specific risks associated with the towing business, it’s highly recommended for operators to invest in comprehensive coverage. This ensures protection against potential liabilities and unexpected damages.
Typically, yes. A standard tow truck insurance policy will often include on-hook towing insurance, which covers damages to a vehicle while it’s being towed. However, there might be limitations based on the value of the vehicle or specifics of the policy, so operators should thoroughly review the policy details.
How do I get proof of tow truck insurance
You can usually get proof of tow truck insurance same day when you purchase insurance through Gerrards.
Acquiring a tow truck insurance certificate from traditional insurance brokers may require a few weeks, a delay that could create problems for policyholders who need instant insurance proof for an imminent contract or lease.
To obtain insurance coverage promptly, contact one of our trucking insurance brokers. We may require you to provide some fundamental details about your business, such as:
- The name of your business
- The total number of employees
- Predicted annual income
- Years of experience in the industry
What does tow truck insurance not cover?
Normal Wear and Tear
Routine deterioration of trucks and equipment isn’t covered.
Contractual Liabilities
If you’ve agreed to take on certain liabilities via a contract, these might be excluded.
Operation Beyond Capacity
Damages resulting from operating the tow truck beyond its recommended capacity are usually not covered.
Other common questions about tow truck insurance
Absolutely! Insurance providers and brokers, especially those like Gerrards, understand that each towing operation has unique requirements. You can adjust deductibles, add on specific coverage options, or exclude certain aspects to tailor your policy.
It’s possible. Insurance premiums are calculated based on risk assessment. If you make a claim, providers may view your operation as higher risk. However, factors like the nature of the claim, your track record, and how long you’ve been insured play a role in determining future premiums.
Comprehensive coverage can protect your tow truck from damages even when it’s not in use, such as from vandalism, theft, or natural disasters. However, breakdowns due to wear and tear while off-duty will not be covered.
There are several strategies to potentially reduce your premiums:
- Maintain a clean driving record for all operators.
- Implement and document regular safety training sessions.
- Install safety and anti-theft devices in your trucks.
- Opt for higher deductibles, if feasible.
- Bundle insurance policies, like combining tow truck insurance with general business liability.
