On Hook Insurance Definition
On-Hook Towing Insurance is defined as a type of liability insurance that covers damage to vehicles that may occur while they are being towed. If a vehicle is being towed by one of your tow trucks and it gets damaged, on-hook towing coverage pays for repairs or replacement up to the policy limits.
What On-Hook Insurance Covers
On-Hook Towing Insurance covers others’ vehicles hooked up to your tow truck when they are damaged by:
What On-Hook Insurance DOES NOT Cover
On-Hook Towing Insurance does not cover:
- Damage to vehicles owned by you or your business
- Damage to vehicles not hooked up to a tow truck
- Personal injuries sustained by your drivers or passengers while in a tow truck
Where to find On-Hook Insurance
Not every insurance agency can write a policy that covers tow trucks and their specialized needs like On-Hook coverage. By filling out our quick form, we will bring you three agents who can offer you a quote on On-Hook Towing insurance. With 3 agents competing for your policy, it’s easy to find the best deal. It’s fast and free!
On-Hook Coverage vs Garagekeepers Insurance
Garagekeepers insurance protects other people’s vehicles when they’re being stored on your property. On-Hook coverage and garagekeepers coverage are sometimes confused with one another. There’s a reason for this. In Texas and Virginia, on-hook towing insurance is referred to as “garagekeeper’s insurance.” If you live in one of these two states, ask your agent for garagekeeper’s insurance to get the equivalent of on-hook towing insurance. (In these two states, what is normally called garagekeeper’s insurance is called “storage location insurance.” Confusing, we know.)
On-Hook Coverage vs Cargo Coverage
On-Hook Coverage is often confused with cargo insurance. On-Hook insurance only protects the vehicle itself. It does not protect personal items, like purses, laptops, and cell phones, left inside the vehicle. That’s the purview of cargo insurance. Cargo insurance protects any personal item left inside a towed vehicle from physical damage, theft, or vandalism. Cargo insurance is usually a good idea for towing businesses and can be bundled in with on-hook coverage.
How to Get the Right On-Hook Insurance for Your Business
1. Custmoize Your Policy
Every on-hook insurance policy comes with a different limit and deductible—it’s up to you to choose a limit and deductible that fit the needs of your business.
- The Limit is the maximum amount that the insurance company will pay for any given accident. A $20,000 limit will cover up to, but not over, $20,000 worth of damage.
- The Deductible is the amount you pay after an accident. $500 is a typical duductible amount. After an accident, you pay the insurance company $500 and they pay for the repairs to the vehicle.
2. Customize Your Payment Plan
Insurance companies allow flexibility when it comes to payment plans. You can pay monthly, quarterly, or yearly. Typically, the more you pay upfront, the lower your premium will cost.
3. Get the Insurance Company’s Rating
Independent agencies like Moody’s and A.M. Best score insurance companies on their financial reliability. If you’re going with a smaller insurance company, it’s a good idea to see how they score with one of these agencies.
4. Shop Around
The best way to get a good deal on an On-Hook Towing Insurance policy is to shop around. The more companies that you look at, the more likely you are to find one that meets the needs of your business.
The easist way to do this is to use our Request 3 Quotes form, which gets you in touch with three independent tow truck insurance agents, who will each assess your business and offer you a unique quote. It’s free, it only takes two minutes to fill out, and it can save you hundreds of dollars a year! Get started now!