Have you ever heard about not for hire tow truck insurance? Whether it is a commercial or non-commercial tow truck, you better have insurance for it. Because we do not know what could have happened on the way. Keep reading this article if this topic piques your interest.
What is Not For Hire Tow Truck Insurance?
Unlike commercial tow trucks that are being used for transporting vehicles at the cost of money, not for hire tow truck is owned by individuals or private companies. The uses of the tow truck are only for moving personal vehicles belonging to individuals or companies.
With specific purposes, not for hire tow truck is considered less damaging and has low risk rather than a commercial truck that has many functions. This usage certainly affects the cost of insurance. Noncommercial tow truck insurance is a type of insurance specifically covering a noncommercial truck.
The cost will change according to the use of the tow truck, ranging from $4,500 – $10,000 annually. The less risky it is, the lower the price for not for hire tow truck insurance will be.
What Affects the Not For Hire Tow Truck Insurance Cost?
As mentioned above, the price for not for hire tow truck insurance costs changes a lot depending on many factors. So, what factors affect the insurance price?
1. The Size of the Tow Truck
Quick check the size of your tow truck. If you have a vast and heavy tow truck, the cost for not for hire tow truck insurance will be more expensive than a smaller truck.
2. The Age of Tow Truck
People who own the newest tow truck model will need to prepare more money than people who own the old tow truck model. It is because the new one is considered more valuable than the old one.
3. The Drivers
The more drivers you have, the more expensive your insurance cost will be. Especially if your drivers do not have good driving safety records. That is why it is better to choose a small number of designated drivers with good records, they will help you to save your money.
4. Your Location
A location that is crowded and packed with vehicles is riskier because there are high chances of an accident. Thus, living in that kind of area will automatically make you pay higher for the not for hire tow truck insurance.
5. Operating Time
In case your tow truck is part of a private company and operates for 24 hours, you will need to pay more rather than operating at a standard business hour. Operating 24 hours means there is a higher risk of accidents, which is why the price is more expensive.
6. Your Longevity
How long have you had the tow truck? The longer you have it without any accidents, the more trustworthy you become. Your insurance company will consider it and cut the expense of your insurance.
7. Safety Programs
According to law, your states will tell you to choose safety programs. The safety programs that you choose will influence the price of your insurance.
The Types of Not For Hire Tow Truck Insurance Coverage
After understanding the definition and price of not for hire tow truck insurance, now is the time to learn what type of coverage is usually offered for tow trucks.
1. Collision and Comprehensive Coverage
When your truck is damaged after getting in an accident, you can claim collision coverage. Meanwhile, if your truck is damaged due to other incidents such as theft, vandalism, and fire, you can claim comprehensive coverage. Your insurance company will pay for the repair costs for that
2. Liability Insurance Coverage
Assuming there is an accident between your tow truck and other vehicles, this coverage will pay the cost for any injuries, damages, and legal fees resulting from the accidents.
3. Medical Payments Coverage
No matter whose fault it is, if you and your passengers are injured in an accident, claim the medical expenses from your insurance company with this coverage.
4. Uninsured or Underinsured Motorist Coverage
If you get into an accident caused by someone who does not have insurance, this coverage will be helpful. It will cover your medical fees and loss of income. Anything related to that accident can be claimed with this type of coverage.
Insurance Companies that Offer Not For Hire Tow Truck Insurance
You may wonder which insurance companies have good noncommercial tow truck insurance and are worth buying. Well, let’s continue reading this article to find out the answer.
1. Geico
This insurance company offers insurance for commercial and noncommercial tow trucks. You can get insurance quotes and make claims online, no need to meet with their agents. Besides that, you can also bundle your tow truck insurance with auto insurance and pay less than needed.
2. Prime Property and Casualty Insurance
Are you a driver with a bad record of accidents? Or perhaps your business is a high-risk one? No more worries, because this company allows you to customize your insurance policy.
Prime Property is not scared to cover risky tow trucks. However, they are not available nationwide, only in specific states. Therefore, you better check out which states have this company before contacting them.
3. Progressive
Progressive offers various insurance coverage for tow trucks, commercial or noncommercial. Their insurance quote can be requested online or by phone and they are available in many states.
Is Not For Hire Tow Truck Insurance Recommended?
This insurance is highly recommended because it can protect the drivers and the vehicles at the same time. We cannot predict what kind of things might happen on our way, so it is best to be careful and prepare insurance beforehand, especially if you own a tow truck.
Some insurance companies have great policies for tow trucks, so you better start looking for the most suitable one. Do not choose in a rush, take your time and compare insurance quotes from different companies before deciding. Good luck with choosing an insurance company.