Denied Insurance Coverage | Ogden Tow

Insurance Coverage for Tow Company

Reasons why a Towing Company May be Denied an Insurance Cover
Insurance companies may refuse to provide insurance cover to a towing truck if they realize that the drivers of those towing trucks are at a high risk of causing an accident. Below are some of the other reasons that may make insurance companies keep off from insuring a towing company:
  • If the drivers of the towing trucks have a negative driving record: If you employ drivers who are always causing accidents and getting involved in other traffic offenses including over speeding and dangerous driving.
  • If you have a record of not paying your insurance premiums on time: If you are always being pushed to pay your insurance claims, you may be denied insurance covers in the future. Insurance companies want to insure people who will not have to be forced to play their part.
  • You have no experience in driving or any insurance history: If the driver who is responsible for the towing vehicle does not have any experience in driving, the insurance company may have reservations in insuring your company since they do not have a record they can refer to.
  • If the towing company is located in a high-risk area: there are locations where the towing vehicles will be more prone to theft, damage or even vandalism, the insurance company may refuse to offer an insurance cover since it is most likely that the risk insured against will occur.
If you own a fancy towing truck that would attract a huge payment in case the risk insured against occurs, an ordinary insurance company may now wish to insure the vehicle.
 A poor credit rating may also make insurance companies to deny you an insurance cover. You should have a good credit rating as this is the only way the insurance cover can be assured of getting the premiums paid on time.
You should be careful in the choices you make in regards to towing trucks so that you will not miss out on the benefits of having your property insured against the risks that will be encountered in the course of providing towing services.

 
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