With more than 250 million cars and trucks on the road at every given time, there are going to be plenty of vehicles that also service those vehicles. If you’re in the auto body or towing industry, you’re going to be familiar with hauling cars or else you’re going to need to get to know about it fast. If you don’t have car hauler insurance yet, you should consider getting some ASAP.
In order to determine whether or not you need car hauler insurance and what it covers, ask yourself these 5 questions.
1. Are You The Type of Business That Needs It?
The most common types of businesses that need car hauler insurance are those that own specialized vehicles to move other cars. If you have commercial vehicles that have that design in mind and you frequently transport smaller vehicles with it, that could be you.
If you’re a car manufacturer, you definitely need this type of insurance. If you’re shipping vehicles from factories to dealerships, you’ll inevitably need a way to move multiple vehicles without putting mileage on them.
Towing companies often use this insurance as well. If you have a towing company that has flatbed trailers to move cars that can’t be towed, then you need hauler insurance.
For an auto repair shop, this is a commonly held type of insurance. If you end up picking up and delivering vehicles, you’ll need a way to insure yourself.
2. Is It Really Necessary?
Requirements for every type of insurance is in the hands of the state. There are a number of concerns you’ll have to take into consideration when deciding on whether you need insurance.
First, you need to assess whether or not you have the money to cover a major loss. If your car hauler gets into an accident on the highway, you could quickly do over a million dollars worth of damage to your own hauler, not to mention others. If you don’t have this money lying around, you should consider hauler insurance.
Secondly, if you want your business to perform well, it might be a necessity. Your potential clients might find it a major turn off if you don’t have adequate proof of insurance.
If you get a contract with a big agency or a government institution, you might not have a choice. You won’t be allowed to do business or even be on the road with your vehicles without it. You need coverage if you want to assure other people that you know what you’re doing.
3. Which Coverage To Get?
Car hauling insurance is much more than insurance for the car hauler itself. When you get this kind of coverage, you’re protecting your vehicle, the driver that is using the vehicle, and even your entire business. There could be massive losses to your business if your hauler hits something or gets hit by something.
Your hauler will be driving along the same roads as every other vehicle and will need to be insured like anyone else. Since you’re likely performing commercial work for profit, you’ll need special coverage.
Consider something that at least includes the typical comprehensive, collision, liability, and coverage for medical payments that you’d get as a personal driver. You can also get insurance that covers what happens in your garage and while you’re in operation. If there’s any kind of vandalism, theft, or severe weather, you want to be protected.
You should also have something to cover cargo. If you’ve just done a bunch of work on a vehicle or are transporting brand new vehicles, you don’t want to experience a huge loss in profit. It’s hard to bounce back from a loss that could come after damage to your cargo.
If you tow vehicles as well, there’s a special kind of coverage called “on hook” coverage. Your hauler should have this whether or not you intend to be hooking any cars.
4. How Much Does It Cost?
There are a variety of factors that contribute to how much your insurance could cost. It’s expensive to insure your car hauler because of the number of vehicles that you could be transporting at any given time.
The weight, the distance you need to travel, and the cost of the cars themselves could have you paying over $1,000 a month.
The size, weight, and capacity of your car hauler will be a factor in determining your insurance rate. The kind of business that you run will also come into play because that could determine how many vehicles you’re hauling at any given point.
It’s also important to know what kinds of vehicles you’ll be hauling. Prices could vary greatly depending on whether you’re moving new or used vehicles. If the vehicles you’re moving are already considered to be damaged, the cost of insurance could drop immensely.
If you’re hauling things locally, you’ll have a much cheaper rate than a company hauling across state lines. Where you’re located and the number of car haulers you’re insurance could also move the decimal point greatly.
Talking to a local independent agent can help you to figure out what you need. Finding an insurance agent who specifically knows auto hauling insurance is the key. Check out this link to find out more about auto hauler insurance.
Car Hauler Insurance Is a Necessity
If you’re going to be taking loads of cars and trucks up and down the highways and byways, you can’t expect every ride to go smoothly. With car hauler insurance, you can rest assured that you’re going to be protected regardless of what happens.
The one person who can help you find the perfect package for your company is an experienced insurance agent. Check out our guide to ensure you find an agent you can trust.