What is on-hook insurance and do I need it for my tow truck business?

As a tow truck driver, you’ve got a lot of responsibility. Your client is trusting you to get their car from Point A to Point B without incident – they expect that vehicle to be in the same condition as they left it. That puts a lot of pressure on you to take extremely good care of the car. But what if something happens to the car while you’re towing it – what if you get into an accident? Well, good news – there’s a coverage that can protect the client’s car while you’re transporting it. It’s called on-hook insurance. Let’s take a look at what on-hook insurance is and how it can help protect your business.

What is on-hook coverage?

On-hook insurance can cover your client’s car while it’s hooked up to your tow truck. Tow truck and wrecker companies need on-hook insurance because anything can happen on the road. And while you might have physical damage insurance to protect your tow truck from disaster, that insurance does not extend to the car hooked up to your rollback or wrecker. It only covers your truck. So, that’s why towing businesses really ought to consider on-hook coverage – the car attached to your wrecker or rollback represents a huge potential loss for your business.

What does on-hook insurance cover?

Here are a few situations where your on-hook coverage could kick in.

Scenario 1.

You get a call to help a driver whose car has broken down on the side of the road. You arrive on the scene and hook up the car no problem. (And it’s a nice car. A really nice car. You’re actually a little scared.) Anyways, the car needs to get to a mechanic’s shop, so you set off on the next leg of the journey. But on your way there, it starts raining really hard. The roads get slippery and you spin out around a curve, sliding off the road and into a tree. You’re fine, and so is your tow truck…but not the driver’s car. Uh oh.

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Scenario 2.

You get a call to pick up a car that’s broken down. The driver is very happy to see you. They need the car to be taken to an auto repair shop, so you cheerfully say, “No problem!” and set off to the shop. All is well on the drive to the destination. You make it to the shop and go to unload the car. Unfortunately, the car seems to have developed a mind of its own. It rolls backward as you’re trying to unload it and it crashes into a telephone pole. And, of course, the telephone pole wins. The car is fairly smooshed. But your on-hook insurance could help you out.

What does on-hook insurance cost?

Right about now you’re probably wondering how much on-hook insurance costs for a tow truck. It’s a valid question. But the thing is that the price depends on a lot of different factors, which is why it’s important to get a tow truck insurance quote. Anyways, some of the details that could affect the cost of your towing insurance are…

  • The type of cars you typically tow (new, used, disabled, etc.)
  • Where you tow and how far you tow
  • The make, model, and year of your tow truck
  • The number of trucks in your fleet
  • Your losses and claims (Your loss run)
  • Your drivers
  • Your deductible

These are just a few details that can impact the cost of your tow truck insurance. We encourage you to get multiple tow truck insurance quotes so that you can get an accurate idea of how much your coverage will cost.

Am I required to have on-hook insurance?

You might be required to carry a certain amount of on-hook insurance in order to operate your business, meaning that you need at least that much on-hook insurance in order to run your business. The requirement for on-hook insurance varies from state to state, so it’s important to check what it is in your state.

How to save money on on-hook insurance.

Improving safety at your tow truck business can help you avoid claims and accidents, which can, in turn, lower your tow truck insurance rates. Some strategies for improving safety at your business are…

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On-hook insurance can help protect your business from a big financial loss. If you’re interested in getting some quotes for on-hook insurance, fill out our online form or give us a call today. Our team of tow truck insurance professionals would be happy to help you with any of your insurance needs.