Avoid These Mistakes While Buying Tow Truck Insurance
There are lots of things that you need to consider before buying any Truck Insurance. Such is the case with tow truck insurance. It is a high-risk business, and you need to get the right coverage to protect your company, trucks, and drivers. That is why; we have compiled a list of mistakes that people make while buying an insurance policy for their tow truck business.
Common Tow Truck Insurance Mistakes
These common mistakes are as follows:
Choosing A Too Low or Too High Deductible
An insurance deductible is an amount that you agree to pay in case of a claim. You should pay a part of your losses, and the insurance company will pay for the rest of the damages. Suppose you have $2,000 deductible and have a claim of $10,000. In this case, you will only pay $2,000, and the insurance company will pay $8,000.
If you can afford significant losses, then we will recommend you to choose a policy with a high deductible. In this way, the premium of the policy will be lower, and you can only file small claims. On the other hand, it is not a good idea to choose a high deductible to put more financial burden on your business. Hence, it is essential to review the finances of your business and then decide which deductible you can afford at any time.
Ask About Discounts
Another mistake that lots of us make is we never ask for discounts. Many insurance companies offer discounts, which means you will pay less for the premiums. It will just take one second of your time to ask the agent about any discount provided by the insurance carrier. Furthermore, ask them whether you qualify for the offer or not. Every insurance company is different, and they have various discounts for the clients. To find affordable tow truck insurance visit Insured ASAP.
Not Reading the Policy Thoroughly and Not Doing Research Before Making A Decision
Whether you are buying tow truck insurance or auto insurance, it is essential to do some research about the company. Make sure that the insurance carrier you choose is reliable and trustworthy. You also need to make sure that the company has experience with tow truck insurance. Another mistake to avoid is not to read the policy. Sometimes, the agents do not tell all the things written in the system. You should read through the plan to know what is covered and whatnot.
Many insurance companies offer different payment options for paying the premiums. You should know about these payment options to stay within your budget. You need to know these options and select one that best works for you. Sometimes, there is a discount when you choose a payment option. Many companies offer handsome discounts when you pay in full. Maybe it is a financial burden, but on the other hand, you can save some on your premiums.
Garage Liability Insurance
Most of the two truck businesses do not have a physical garage location. So, they think that there is no need for garage liability coverage. But it is the right choice as it can come handy. Garage liability insurance covers you during your day-to-day operations, such as property damage or bodily injury. Furthermore, it keeps you covered when the new tires of the car come off and cause an accident.
Thinking That Auto Liability Will cover the Losses to Your Truck
You need to keep in mind that the auto liability insurance will cover the legal obligations to the other driver. If it is your fault, then the insurance will pay for the medical bills of the other driver. Furthermore, it will pay for the replace or repair of their car. However, it will not repair or replace your tow truck. If you want to cover the damage to your tow truck, then you need physical damage insurance for your business.
This kind of insurance will provide comprehensive coverage and collision coverage. With collision coverage, the insurance company will pay for the replace or repair of your truck. On the other hand, full coverage will pay for the repairs when your vehicle is damaged other than an accident such as falling objects, fire, or vandalism.
Long story short, the auto insurance does not cover your truck, so if you want protection for the two vehicles, then you should consider physical damage coverage while buying tow truck insurance.
Well, you should shop around for finding an affordable quote and save some money on insurance. There are lots of websites that can help you compare quotes of different companies. Make a list of companies and get their quotes. After that, compare them according to the price, coverage, and discounts. Then select one that best works for you. It may be a difficult task, but it can help you save some money.
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