What Type Of Transportation Business Do you Operate?
As a commercial auto/trucking insurance specialist, this is a question that we get quite often. The common misconception is that if it is a tow truck that is being operated, that it must be a towing operation. That is not true. It is not what you are driving, but how you are using the vehicle.
Instead of looking at what the vehicle is, let’s define the different classes of business to better determine how the policy should be rated.
A true towing operation would be a risk that picks up, or tows, wrecked or disabled vehicles. Vehicles are usually picked up after an accident, or broken down, and towed to a yard or repair facility. This can include being on rotation for a roadside assistance company such as AAA or Agero. Another rotation would be for law enforcement or municipality. The towing operation may also include repossession or recovery services. A towing operator will typically stay in a local radius, 25 to 50 miles, although occasionally they may go up to 100 miles.
Auto Hauling Operation
An Auto Hauler is someone who picks up and or delivers vehicles from the point of purchase to the point of sale and vice versa. This includes new cars, used cars, and salvage autos. Auto Haulers may have a local radius, for example, they live in Orlando and pick up at local dealers and deliver to the auctions there in Orlando. They could also have an unlimited radius and may take vehicles across country.
Whether you are an Auto Hauler or a Tow Operator, it is very important that you are rated correctly and have comprehensive transportation insurance. Incorrect rating could result in denial of a claim or improper coverage on the vehicle. If you are still unclear as to which you would be, speak with a knowledgeable agent who can help discern the proper rating.
Barbee Jackson Insurance is Your Trusted Transportation Insurance Agency
Barbee Jackson Insurance is a leading commercial insurance agency with a focus on transportation insurance. This allows us the flexibility to offer package discounts and provide you with general liability, pollution, workers compensation, and many others with one single phone call. Give us a call today for your free quote! 1-850-389-2001