Of course, the biggest mistake in buying tow truck insurance is not having enough coverage. But there is more to it. As commercial truck insurance is very broad, the chances of making blunders are also higher. To avoid making mistakes in the policy buying process, go through this post and make an informed decision.
Buying a tow truck is itself the biggest decision and getting into this business is even more challenging. There are n-number of potential risks that a tow truck operator faces through the towing session which can put the trucker, own truck as well as the towed vehicle at stake. Damage to any of these things can be very costly. Here, tow truck insurance acts as a financial safety net for your trucking business from numerous possibilities on and off the road.
But there is a catch! Providing your tow truck with the best coverage is very confusing. When you go on a policy hunt, insurance agents bombard you with several coverage policies that are either costly or unuseful. They persuade gullible buyers to purchase all the unnecessary coverages just to make money. Through this post, we want to help all tow truck insurance seekers to avoid making a few mistakes while buying the policy.
8 mistakes that you should avoid while buying tow truck insurance
Nowadays getting truck insurance is a lot easier and simpler. This is because competition among insurers has grown but this race has made things complex as well. This is because every insurance company projects themselves the finest ones. Most of them are good but a few are just there to make money.
You already spend a huge time and money on your towing business. You don’t need to stress out about getting the right insurance coverage for yourself. To do that, you need to avoid the following mistakes that are capable of making your business suffer financially.
1. Not shopping around
Every insurance company functions differently. You need to shop around and get the best coverage. Impulsive decisions never go well with anything. Even if you have truck insurance right now, consider doing some research and get the finest deal. You should at least talk to 3-4 insurers and analyze what each of them has offered. You might get comprehensive coverage with one of the insurers at the same price other insurers are not ready to give. Make sure you do the comparison fairly.
2. Don’t just focus on price
Undoubtedly, every person wants to save money on their truck insurance policy. But focusing only on this aspect fails to be advantageous in the time of need. Try focusing on the bigger picture like the insurance company’s repute, claiming process, customer service, experience, etc. Choosing the cheapest policy with a company that is unresponsive and causes delay doesn’t make sense.
3. Not being honest
The major part of getting tow insurance is filling out the applications. If you don’t provide the correct data about yourself then you might not get the insurance quotes accurately. The price of insurance is based on information like the type and size of the vehicle, driving records, operating radius, etc. Many people hide vital data to save on monthly premiums but when the time comes for the actual reimbursement their claims get rejected.
4. Buying little coverage
Sticking to minimum state requirements won’t be beneficial for your tow trucking business. As your business is full of challenges and risks, you need to add an extra layer of protection in the form of:
- On-hook towing insurance
- Garage liability insurance
- Trailer interchange
- Medical payment
- Physical damage, etc.
5. Purchasing more than needed
As already said, insurance agents will pitch unnecessary add-ons to be applied to the policy. Many people get swayed away by the offer and end up paying extra money. Therefore, avoid buying coverages that you don’t even require.
6. Don’t forget the deductibles
The deductible is the money you are supposed to pay before the tow truck insurance actually kicks in. Policies with low deductibles are definitely tempting but substantially reduce your share after the incident. It is recommended to opt for higher deductibles (if you can) to save money when an accident happens. This also lowers your monthly premiums.
7. Not changing insurance provider
Loyalty is good but it should also work in your favor too. You should not stick to only one insurance company all the time because you might be missing many discounted options around you. If the policy renewal time is sometime soon then consider reaching out to a couple of insurers. You might get blanket coverage at a cheap rate.
8. Not renewing the expired insurance
If you fail to renew your expired truck insurance then you might face a hefty penalty, imprisonment, or even both. Not having adequate coverage means if you cause or get affected by an accident then the financial suffering will be vast. Also, such date-stamped misconduct can affect the price of truck insurance whenever you opt for its renewal. Past driving experience and law violations can impact your impression in front of your insurer. As a result, your tow truck insurance rate will go on the higher side.
Investing money in anything needs deep consideration and buying tow truck insurance is one of them. You spend thousands on covering your commercial vehicle which should pay you out at the time of need.
Ensuring the safety of a towed vehicle until it reaches the service station or other location is risky. So, protecting your investment is essential. You should go through your tow truck insurance policy terms and conditions observantly. If you find ambiguity or are not sure about any segment, ask the insurer right away before putting your initials on the paper.
Make comparisons fairly, don’t just go by the price. Keep all the above-mentioned mistakes in mind while purchasing tow truck insurance. Once you are sure and see that the insurance company is providing the right type of coverage for your tow trucks then only go ahead with the deal.
Think prudently, and most importantly stay protected with the optimum coverage!