We often make lots of mistakes when choosing a tow truck insurance. We all just want to get the insurance to start our business. But you need to keep in mind that towing is a high-risk business. Hence, it is crucial to find the right coverage to protect your trucks, drivers, and company. For this, we have made a list of common mistakes that people often make when buying two truck insurance.
Common Mistakes to Avoid
These common mistakes that you should never make are as follows:
Ask for Discounts
Who does not want discounts when it comes to business insurance? It means that you need to pay less for insurance. That is why; it is essential to take some time and ask your agents about any discount available for you. If there is any, then you should apply for it. You also need to keep in mind that all the carriers are different and they offer different types of discounts.
Choose A Reasonable Deductible
Another mistake that people make is they choose very high or very low deductibles. A low deductible means that you need to pay high for the premiums. A deductible is an amount that you agree to pay in case of a claim. In short, it is the portion of an application that you agree to pay, and the insurance company will spend the rest. For example, you have a deductible for $2,000, and your claim is $5,000. It means that you will pay $2,000, and the remaining $3,000 will pay your insurance carrier.
Hence, it is essential to choose a deductible that is affordable for your business. If you choose a high deductible, it means you will pay less for the premium. It also means that you can only file small claims. A too high deductible will put more financial burden on your business. So, keep the finances of your company in mind and select a deductible that you are comfortable with.
Do Your Research, Before Choosing A Carrier
Whenever you are going to buy tow truck insurance, you should do proper research. There are lots of companies in your state that are providing coverage, but not all of them are good. That is why; it is essential to make sure that the company is reliable and trustworthy. You also need to check their experience with writing tow truck insurance. Another important thing is to read through the insurance policy to see what this insurance covers and whatnot. To find affordable tow truck insurance visit Insured ASAP.
Ask for Payment Options
Another mistake that people make while buying insurance is that they do not ask for available payment option. It is essential to ask about it as it is crucial for your budget. Ask about the different payment options and choose one that best suits your needs.
Some of the carriers offer significant discounts when you pay the insurance in full. It may be a substantial amount for you, but it can help you pay less for the protection in the long run.
Garage Liability Insurance
Most of the business owners think that they do not need this insurance as they are not saving their vehicle inside a garage. However, we will recommend you to get garage liability coverage even if you do not own a garage. The reason is that it covers the cost of bodily injury or property damage during the day-to-day operations of your business. For example, you changed the tire of a vehicle, and somehow these tires come off, which causes an accident, then this insurance will keep you covered.
Auto Liability Insurance Vs. Physical Damage Insurance
Well, you should know that your auto liability insurance does not cover the damages to your truck. Auto liability insurance keeps you covered when an accident happens. If you are at fault, then the insurance company will pay for the other driver’s medical bills. But it does not pay for the replacement or repair of your tow truck.
You need physical damage insurance if you want to protect the damage to your tow truck. This indemnity includes collision coverage and comprehensive coverage. In the case of collision, the carrier will pay for the repair or replace the truck in case of an accident.
On the other hand, the comprehensive coverage can cover the damage to your truck other than an accident such as fire, theft, vandalism, or falling objects. In simple words, you need this insurance if you want to cover for your truck. So, keep in mind about physical damage coverage while buying a tow truck insurance policy.
Do not rely on an agent to find an affordable option for you. You also need to shop around to get multiple quotes. After that, compare them with each other and review the coverage they provide. Choose one that offers maximum coverage at a comfortable price.