Towing and repossession can be a challenging industry with a high risk of litigation. Consumers can be embarrassed, angry, and combative when their vehicles are claimed after defaulting on a car loan. Your towing and repo clients have to deal with potentially volatile situations as part of their jobs. We offer top-notch insurance for towing & repo companies, providing your clients with the protection they need.
Technology and economic difficulties have come together to make it easier for towing and repo companies to find the cars they’re looking for, which consumers have lost thanks to growing economic stress. According to a Federal Reserve Bank report, over 4% of auto loans were at least 90 days late at the end of 2017, and almost 10% for subprime auto loans. People are not paying their bills, which means towing and repo companies are busy.
General liability insurance is a good idea for any business owner, but insurance for towing & repo companies takes protection further in this booming but risky industry.
Types of Insurance for Towing & Repo Companies
There are a few different types of insurance for towing & repo companies from which your clients can choose. A comprehensive policy may also be an option depending on your client and their needs. Prime Insurance Company is happy to work with you to secure the appropriate coverage.
Wrongful possession insurance – This is a particularly beneficial product line. This type of coverage provides for damages arising from negligence, error, or omission by auto repossessors. Repossessing the wrong vehicle, for example, would likely be covered by this line. It goes beyond general liability.
- Garage keepers insurance – When the vehicle has been towed or repossessed, it is in the care and control of your client. Garage keepers insurance covers any damage done to the property in their care and control, an important piece of the insurance puzzle. To financial institutions, repossessed vehicles are collateral against outstanding loans, which means these are very valuable items. In the event of weather damage, criminal activity, or other issues that damage that collateral, garage keepers insurance ensures that the vehicle’s value is paid back.
- On-hook liability insurance – Sometimes referred to as motor cargo insurance, on-hook liability insurance protects your towing and repo clients when they have a vehicle on the hook of their tow vehicle. If anything happens to the vehicle while it is attached to your client’s tow truck, the insurance will repair or replace that vehicle, protecting the bank’s collateral and your client’s livelihood.
- Drive-away insurance – This is somewhat similar to on-hook liability insurance but covers insureds when they are physically driving a repossessed or towed vehicle.
- Physical damage coverage – This is important for towing and repo companies that want coverage for their own vehicles. If the tow vehicle is in an accident or damaged in a covered incident, this insurance line pays out to fix or replace the vehicle. The options include collision coverage or comprehensive physical damage coverage, much like personal auto insurance.
- Tow truck insurance – a more comprehensive option, this includes automobile liability, garage keepers legal liability, drive away coverage, on-hook coverage, and more.
- Medical payment insurance – for towing and repo companies, medical payment insurance offers protection for those dealing with the emotions and actions of people whose vehicles are being repossessed or towed. If someone injures your client on the job, this insurance provides for medical bills.
The cost of insurance for towing & repo companies changes based on variables, such as the number of trucks and employees, loss history, and the risk the business faces. Prime Insurance Company is proud to offer insurance even in hard-to-place situations. If your client has been turned down in the past, contact us to see what we can do.
Write More Business with Insurance for Towing & Repo Companies
As a producer, the more product lines you can offer, the more business you can write. For your existing towing clients, this coverage offers them more for their money. And, if you are not already focusing efforts on this industry, our accessible, comprehensive insurance gives you a competitive edge.
Insurance for towing & repo companies is vital to the industry. With auto repossession on the rise, it’s an area for huge growth for insurance producers. Clients will see the benefits of these kinds of insurance, from meeting mandated minimums to making a name for themselves as a towing and repossession company that works hard to be fair, decisive, and able to take action against risk.
Get in touch with Prime Insurance Company to learn more. Contact us online, call 800-257-5590, or email us at email@example.com. You can also keep up with us on Facebook, LinkedIn, YouTube, Instagram, and Twitter.