What is Car on Hook Insurance?

Car on Hook, some times referred to as just “On- Hook” is a type of insurance designed for companies that tow other people’s vehicles as a part of their business. It covers damages that happen to the vehicle being towed while under the towing company’s Care, Custody, or control. This protects a towing company against customer’s claims that their vehicle suffered damage while being loaded, unloaded, or sitting on you flatbed or connected to your wheel-lift. 

The liability insurance on the tow truck covers any damage the vehicle being transported does to other property or people, but the damage that is done to the vehicle(s) being towed falls under the “Car on Hook” coverage. The limits needed vary from state to state, in Illinois the limits required must be no less than $25,000.

Am I required to have on-hook insurance?

If your businesses offers towing services—You need On-Hook Towing insurance.  This  coverage protects your company from, what could potentially be, a costly claim. With the average cost of a new car running over $50,000, and even low-impact incidents being costly; a company would be taking a large risk operating without this protection. Additiomally, the Secretary of State’s office will need to see proof that you carry Car on Hook  marked on the Certificate of insurance prior to them selling you (TW) Towing Plates.

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Have Questions or Prefer to Talk to an Agent? No problem.
Just give us a call at 800-680-0707, or have one of our auto insurance agents call you.

 

 

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Urban Insurance Agency, LLC
915 W Huron St # C105
Chicago, Illinois 60642
312-664-8088

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