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Home > Blog > What you need to know about On-Hook Coverage
WEDNESDAY, SEPTEMBER 28, 2022

What you need to know about On-Hook Coverage

On-Hook Towing

  

Put simply, “On-Hook” Insurance Coverage is insurance against loss or damage to the tow company’s customer’s vehicle.  Imagine you are called to pick up a person’s vehicle from their place of work because it has broken down and needs to go to the Repair Shop.  You arrive and the owner is thrilled to see you.  You hook up the vehicle, which is a brand-new Lexus, and head to the Repair Shop as discussed with the owner.  All is going fine, until it begins to rain.  The roads become a bit slick.  Approaching a stop, your truck begins to swerve.  Before you know what is happening, the Lexus slams sideways into a telephone pole.  The damage is extensive.  This scenario could happen to anyone and maybe something similar has already happened in your business. 

This type of damage, to a customer’s vehicle that you are towing, would not be covered under the Physical Damage coverage on your insurance policy.  This is where “On-Hook” Insurance is imperative to a tow operation.   As a tow company owner or driver, you must be sure there is On-Hook coverage in place to protect you and your business from this type of event. 

 

What is the cost of on-hook insurance coverage?

Right now, you’re wondering how much On-Hook Insurance Coverage costs.  It’s a valid question.  When you are running a business, the cost of insurance is part of your equation.   There are many factors that go into the costs of On-Hook Insurance Coverage, such as:

·         What type of vehicles you normally tow (new, used, disabled, antique etc.)

·         Where and how far do you generally tow your customer’s vehicles

·         What is the make, model, and year of your tow truck(s)

·         How many tow trucks are owned by your business?

·         Have you had any losses or insurance claims against you regarding towing a vehicle in the past several years?

·         Do your drivers have good Department of Motor Vehicle records? 

·         Age of your drivers

·         What limit of coverage you choose?

·         What deductible limit you choose?

 

These are just a few of the details that can impact the cost of your tow truck insurance.  The professionals at Arrowhead Automotive Insurance can help you determine the final cost of this vital coverage. 

 

Saving on the cost for On-Hook Insurance Coverage

As every business owner wants to save money wherever possible, we want you to know there are ways to save on this vital coverage.  Most importantly, improving safety at your tow truck business can help you avoid claims and accident, which can, in turn, lower your tow truck insurance rates.  Some strategies for improving safety at your tow truck business are:

·         Having regular Safety Meeting with your staff

·         Investing in training for your tow truck drivers

·         Forbidding distracted driving, such as the use of cell phones while in transit

·         Keeping logs for vehicle inspection and maintenance

·         Being thorough when hiring new tow truck drivers, being sure to review their driving records

 

Are you required to have on-hook insurance for your towing business?

The requirement for On-Hook coverage varies by state.  In some states on-hook coverage is required to operate a towing operation.  It is important that you, as a business owner, check with your state to determine what that coverage are for this type of business.  If you are unsure, the professionals at Arrowhead Automotive Insurance can help you.  Just give them a call at 888-240-8803. 

 

In conclusion

On-hook insurance coverage can help protect your business from large financial losses.  It is imperative that owners of towing businesses seek out insurance professionals that understand the very unique needs of this industry to ensure they are covered against. 

Arrowhead Automotive Insurance is a leading national insurance agency providing products and services to businesses in the towing industry. Arrowhead Automotive Insurance brings national strength with local, personalized service. With a team that is as connected nationally as it is locally, we provide the personalized service of a local agency and the peace-of-mind that is expected from a top ten brokerage firm. We have become a leading insurance partner because we view insurance differently and utilize our vast experience and wide-reaching network. By leveraging our experience, carrier relationships, and customer-centric focus, we deliver superior service and solutions to our customers, both big and small.

If you are interested in getting a quote for your towing business, CLICK HERE.  

Posted 11:50 AM

Tags: on-hook insurance, towing, coverage
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