Insurance Requirement for Tow Truck Operators

Commercial tow truck insurance includes liability insurance cover as it is the most common type of vehicle insurance that is required for basic coverage benefits. It will also help you compensate for any other costs related to accidental injuries suffered by a third-party by you or your drivers. Read more

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Tow truck operators need to work in risky circumstances while transporting cars/heavy vehicles through busy roads and extreme weather conditions. Working in these situations increases the possibility of an accident and having to file an insurance claim. And commercial vehicle insurance can protect the tow truck operators from sucks risks that may arise.

Tow truck insurance is a specialized form of truck insurance that is designed for towing companies keeping in mind the needs of tow truck operators. The main coverage areas that tow truck policies cover are Liability insurance that includes property damage and bodily injury cover, and medical payments.

Truck insurance cost depends on the type of coverage you opt for. If you opt for i.e. Liability only cover or a Comprehensive cover.

Buying a Commercial Truck Insurance for your Business

As per the Motor Vehicle Act, we all are aware that a Liability only policy is mandatory for all the vehicles including commercial vehicles like tow trucks. The insurance covers and protects for financial losses if the truck causes any loss or damages to third-party property, vehicle, or person. You need basic truck insurance in place to be able to drive your trucks legally around India.

Owing to the huge size of trucks and their frequent use, a Standard Package Policy or comprehensive commercial truck insurance policy is advised. It not only protects from third-party damages but also covers the losses/damages caused to an insured truck and the owner-driver.

It will compensate for the:

  • Loss or damage caused to the vehicle due to natural and man-made disasters
  • External damages  caused to the vehicle after an accident 
  • Third-party death and bodily injuries
  • Third-party property damage 

Coverage Extension

You can extend the coverage by an extra amount of premium. Here are some of the important additions-

  • Loss of accessories cover
  • Legal liability cover to non-fare paying passengers
  • Personal accident protection cover to the owner/driver and any named person ( apart from an employee)
  • Personal accident benefit to the  vehicle cleaner/conductor/paid driver
  • Legal liability cover to the conductor/paid driver

How to choose the best Truck Insurance for my business?

Given the variety of insurance options that are available today, it becomes important to pick insurance that is simple, affordable, and offers protection to you and your business in emergency situations. After all, that is what insurance is for!

Here are a few tips to buy the Right Truck Insurance as per your Requirement

You need to look at the Insured Declared Value (IDV), which is the manufacturer’s listed selling price of the commercial vehicle that you need to insure. Based on this your policy premium will be decided. So, when you are planning to buy the right truck insurance online, its IDV needs to be correct.

  1. Service Benefits: When buying a commercial truck insurance, wide network garage for cashless repair, 24x7 Customer Support, roadside assistance are some of the important requirements. When an emergency strikes all these services matter.
  2. Claim Settlement: Timely claim settlement is one of the most important aspects of insurance and should be the first thing that comes to your mind. It is best to go with a vehicle insurance provider that quickly helps you settle your claims.
  3. Review Add-Ons: When buying commercial vehicle insurance for your tow truck, do consider the add-ons to avail maximum benefits.
  4. Best Value: From the right premium to add-ons and after services, and claim settlements; pick motor insurance that covers all the risks at a reasonable rate

How is the Insurance premium calculated for a Tow Truck?

The premium for Own Damage cover is calculated as a percentage of IDV as per the Indian Motor Tariff. Thus, the formula to calculate the Own Damage premium amount is:

Own Damage premium = IDV X Commercial Vehicle Premium Rate (as per the insurer) + Add-on cover - Benefits & discount (theft discount, no claim bonus etc.)

Bottom-line

No wonder everyone wants to protect their business from any losses that can be caused due to any road accident, natural calamity, and collision. To know more details you can call our experts at 1800-208-8787 from 10:00 am to 7:00 pm.

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