If you run a tow truck business, you know that you face plenty of risks every day. To cover those risks, you need to protect your business with tow truck insurance. Since every tow truck business is different, every tow truck business needs a unique insurance plan that’s customized for its specific risks. One type of insurance that you might want to consider for your operation is garagekeepers liability insurance. We’ll explain what garagekeepers is and how it can protect your tow truck business.

What is garagekeepers insurance?

Garagekeepers insurance will protect your business while you have clients’ vehicles in your care, custody, and control. That basically means that you’re responsible for the vehicle. Let’s say that you’re called to a tow in the middle of the night. The car needs to go to an auto service shop, but the client’s favorite mechanic doesn’t open until morning. You take the car to your own premises to store it until you can get it safely to the shop. The client’s car would be in your care, custody, and control while on your property.

But what would happen if there was a fire at your shop and the vehicle was destroyed? Chances are that your client wouldn’t be too happy that their ride’s been torched. But garagekeepers would come to the rescue and help you take care of the loss. So, when you’re considering what kind of insurance you need for your tow truck business, you may want to consider garagekeepers insurance.

What losses are covered by garagekeepers insurance?

There are several losses that garagekeepers will protect your businesses from – and of course, there are plenty of ways that your clients’ cars could run into trouble while in your care. The losses that are typically covered are…

• Fire
• Theft
• Vandalism
• Explosion
• Lightning

How much garagekeepers insurance do I need?

To determine how much garagekeepers insurance you might need, think about how many cars you have in your care, custody, and control at any given time. Then figure out the average value of the vehicles. If you multiply the two numbers together, you’ll get a good idea of how much coverage you need. For instance, let’s say you usually have six cars in your care. The average value of those cars is $20,000. You would need at least $120,000 of garagekeepers insurance.

Does garagekeepers have a deductible?

Yes. Garagekeepers does have a deductible, which is the amount you agree to pay before insurance will cover the rest of the claim. The type of deductible that it usually has is a per-vehicle deductible. This means that you have to pay the deductible for each vehicle that was damaged or destroyed by a loss.

For example, let’s say your per-vehicle deductible is $1,000. If there was a fire at your shop and three cars were destroyed, you would have to pay $1,000 for each car, so your cost before insurance stepped in would be $3,000.

When you’re selecting your deductible, you have to consider how much money your business can comfortably afford to pay if you had a claim. Even though setting a higher deductible may help you save some money on your premiums, you don’t want the deductible to be a huge financial burden that would put a strain on your business if you had to pay it.

What’s excluded from garagekeepers coverage?

There are a few things that are not covered by garagekeepers insurance.

Exclusions include…

• Contractual obligations
• Theft of vehicles by the insured
• Defective parts/faulty work
• Loss to sound equipment (unless the system is installed permanently)
• Radar detection equipment

The risks faced by tow truck businesses are numerous. When a client leaves their car in your business’s care, it becomes your responsibility. Life often takes unexpected turns, so it’s important to be prepared for anything. Garagekeepers can protect your business if anything ever happens to your clients’ vehicles while your tow truck business is taking care of them.

Do you want to save some money on your tow truck insurance? We can help with that – we have relationships with numerous tow truck insurance carriers, so we can help you shop for the best rate. We know that tow truck insurance rates have been going up, so our mission is to help save tow truck businesses like yours some money. To get tow truck insurance quotes, just fill out our online quote form or give us a call today.