On-Hook Towing insurance will pay to repair or replace a vehicle you don't own if it is damaged by a collision, fire, theft, explosion or vandalism while you are towing or hauling.
In Texas and Virginia, On-Hook Towing insurance is called Garage Keeper's Legal Liability insurance. In these two states only, what is actually Garagekeepers Legal Liability insurance is called Storage Location insurance.
Who Needs On-Hook Towing Insurance?
Businesses that offer towing services need On-Hook Towing insurance to protect them while they're hauling vehicles owned by a customer or someone else.
Limits, Deductibles and Other Details
With On-Hook Towing insurance, you must select both a limit and a deductible. The limit is the maximum total amount paid per occurrence for damage done to all vehicles.
The deductible is the amount you will pay out of pocket per occurrence for repairs or replacement of the damaged vehicle before your insurance pays.
On-Hook Towing Insurance Example
A customer's car won't start, so she calls you to pick it up. You're towing it to your shop for repairs and stop to refuel your tow truck.
When leaving the gas station, you take a turn too sharply and accidentally scrape the car you are towing against a low hanging tree branch and rip off the mirror and put a large scratch into the passenger side door.
The $15,000 On-Hook Towing limit with a $500 deductible you selected covers replacing the mirror and repairing damage to the passenger door. You would pay $500 toward the repairs, and your On-Hook Towing insurance would pay the rest.
Exceptions and Restrictions
You must purchase Liability insurance to be eligible for On-Hook Towing insurance.
If one towing vehicle has On-Hook Towing insurance, all towing vehicles insured on the same policy must have On-Hook Towing insurance with the same limits.
On-Hook Towing insurance is only available for the following business types:
- Towing or service station services
- Trucking for hire, when hauling vehicles not owned by the insured
On-Hook Towing insurance is only available for towing certain vehicle types. It is not available for:
- Towing your car behind your mobile home
- Transporting your own vehicles or vehicles owned by your business
- Towing antique cars, race cars or boats for personal use