Secure Your Georgia Tow Truck Business with Barbee Jackson Insurance

Written by: Caleb Jackson, VP and TRIP certified in transportation insurance. He and his team insured hundreds of tow operations throughout the United States. 

It’s safe to say that the South is growing in record numbers of new residents fleeing cities that are over taxed and regulated. With new residents come bigger opportunities for tow operators as there are more accidents and emergency roadside assistance.

At Barbee Jackson Insurance we know the challenges of tow truck businesses and know what regulations are required for our tow truck drivers and are ready to help. For the past 20 years we have been dedicated to finding our clients the coverage required by the State of Georgia at the best price. As an independent insurance agency we are able to compare rates from a variety of different insurance companies to make sure you are getting the best rate on your insurance. Call one of our expert trucking agents today to get started - (850) 389-2001

Georgia Tow Truck Insurance Requirements 

Georgia Department of Public Safety and Motor Carrier Compliance require a minimum of the following:

• Commercial Auto Liability - $100,000 bodily injury per occurrence / $300,000 per accident and $50,000 in property damage. The limit is expressed as 100/300/50, but the majority of the time the insurance company will combine these limits into one coverage level referred to as Combined Single Limit (CSL). The CSL would be $350,000.
• Impoundment Facilities - Georgia Department of Public Safety requires $50,000 on garagekeepers legal liability insurance. Not required unless you have an impoundment facility.

Additional Coverage Options

Your tow operation may want to add additional coverages to protect the vehicle or the passenger vehicle.

• Physical Damage - Provides comprehensive and collision to the tow truck. This includes after market tow equipment that is permanently installed. To protect your investment it is important to add the tow equipment and truck for the total insured value.
• On-Hook Tow - An added protection for your customers' vehicle in transport. Protects against loss that you may be held legally responsible such as theft, fire and collision while in transport. This coverage is for “On-Hook” only. 
• Garagekeepers - If you plan to store the customers vehicle in your yard then garagekeepers is an additional coverage that provides the same level of protection as On-Hook, but for your facility. It is designed to insure your customers' vehicles while you are in the care, custody and control.
• Uninsured/Underinsured (UM / UIM) - Offers medical payments for drivers and passengers that are injured in an accident.
• General Liability - General liability can be purchased as a standalone insurance policy for those businesses that have an office or tow yard.

Tow Truck Insurance Cost

There are numerous factors that influence cost such as location (the more rural the less the price), driving record and coverage levels, but you can expect to pay between $5,500 - $12,000 per year / per unit. 

⭐⭐⭐⭐⭐Jeremy Mack “They helped me get exactly what I needed, and they were fast.”

Questions and Answers

These are the most frequently asked questions that we have received over the years.

Are Atlanta’s tow truck requirements higher than the rest of Georgia?

No, the limits required are exactly the same no matter where your tow operation is located. As previously stated, you can expect to pay a higher premium in Atlanta due to its population and amount of vehicles on the road.

It is important to point out that State of Georgia requirements are lower than operations that want to work on rotation programs, motor clubs, and property management contracts. They will often require $1 million in auto liability plus $100,000+ in garagekeepers and may want On-Hook coverage. 

What is one coverage option that is not required, but highly recommended?

On-Hook Tow, is the one essential coverage that is highly recommended. You want your business to have a great reputation and with this coverage if your customers vehicle is damaged while on-hook your insurance company is responsible for paying to repair the damages, not your clients.

What is the difference between Consensual and Non-Consensual Towing?

Consensual is when the owner of the vehicle or motor club calls you for roadside assistance. Non-Consensual is when the vehicle owner didn’t call you, but instead either the police rotation or private-property owner make the call for the vehicle pick up. This is referred to as Impound and requires $50,000 in garagekeepers legal liability insurance.

Can I use my tow truck for personal use?

There are no restrictions on use of vehicles. The only requirement would be the radius of operation that you would disclose to your agent during the initial phone call. The majority of tow operations have a 50 mile radius of operation.

At Barbee Jackson Insurance we are committed to helping anyone with questions concerning all types of insurance. Our expert agents will work with you to find the right coverage at the best price. Call today to get started (850) 389-2001

⭐⭐⭐⭐⭐Gio I “Fast and Best insurance agency around .. been with them for years and always surpass my expectations..”

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