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Philadelphia Tow Truck Insurance

Philadelphia Tow Truck Insurance — Same Day Quotes and Coverage.

Philadelphia Tow Truck InsuranceIf you’re shopping for a better deal on Tow Truck Insurance in Philadelphia or the nearby areas there’s only one number for you to call: 1-800-998-0662, available until 5 PM EST.

In some cases, depending on the size of your towing operation, we might be able to obtain same-day quotes and coverage as long as you call us early enough in the day. Companies that are being canceled or that have more than five vehicles in their fleet may take longer than one day as we will need to obtain loss runs.

If it’s after 5 PM, use our convenient online chat system to speak with a licensed agent or, if our chat system is not activated, send us a request for quotes and information around-the-clock by clicking on any of the links below:

Here at Pathway, one of our primary specialties is Tow Truck Insurance.

We Know Towing so You Can Get Going! ™

Philadelphia Tow Truck Insurance — Who Do We Insure?

We insure new companies (not sham new business ventures), existing companies with or without a good claim record, and we insure companies that have been canceled because they have a bad claim record.

We offer Insurance for Repossession Companies, companies that offer roadside assistance, and those who work for motor clubs offering 24 hour per day service.

The only towing businesses we don’t work with are those who try to hide drivers or trucks, those who falsify information to our representatives, and those who try to pull a fast one on the insurance companies we represent either by claiming they are a new business venture when in fact they are not (we call this the New Business Venture Sham Scam – more about this in the next subheading) or by pretending they are a tow truck company when in fact they are hauling vehicles exclusively for auto auction companies (Tow Auto Hauler Scam).

Some towing operators think they can outsmart the insurance companies by either pretending to be something they are not or claiming they are a new venture when in fact they can’t find low rates on Tow Truck Insurance in Philadelphia because they have so many claims on their record; they have been canceled or their rates have doubled or tripled and now the towing operator finds themselves in a position where they can’t afford or do not wish to pay the new, higher rates.

We will share with you a few loopholes shady towing operators have tried in the past to get lower rates on Philadelphia Tow Truck Insurance. Trust us when we say avoid what you will see below or you will regret it later!

Philadelphia Tow Truck Insurance — Avoid these Ways to Lower Your Rates.

Remember the old TV commercial slogan, you can’t fool mother nature? The same is true of insurance companies. Because of the progress of technology, insurance underwriters are far savvier at detecting the New Business Venture Sham Scam or the Tow Auto Hauler Scam.

What is the New Business Venture Sham Scam and the Tow Auto Hauler Scam?

Here is how the New Business Venture Sham Scam works:

A tow company gets into trouble because of excessive claim activity and/or hiding vehicles or drivers, and they receive either a massive rate increase or a cancellation from their insurance underwriter.

Next, the owner gets the idea of starting up a new company to try to begin from a blank slate, thinking “if I rename my company and get a new DOT or state designation I can get a fresh start for my insurance and stay in business.”

In the past this was often successful. However, due to technology improvements, as was mentioned above, insurance underwriters are able to detect this in most cases. Still, some insurance carriers underwrite after the policies are already issued.

This creates a problem for the owner who thought they were getting away with the New Business Venture Sham Scam. We will take time to explain how this can burn those who are trying to pull a fast one in our next article, but first of all, let’s answer this question:

Philadelphia Tow Truck Insurance — Why Do We Call the New Business Venture Sham a Scam?

Because, in reality, the towing operator is being less than truthful. Any time a policyholder misrepresents their circumstances intentionally in any way they are openly trying to scam the insurance company to obtain lower premium rates.

This is insurance fraud, plain and simple. Insurance fraud is a crime and the perpetrators, i.e. the policyholders who misrepresented their circumstances, can be held criminally liable for their actions. This is most well-known in workers compensation.

An employer wishing to reduce his workers compensation rates will not disclose all circumstances to obtain lower prices, taking the chance that the insurance company will not investigate.

When a worker’s compensation claim occurs, this opens the door for insurance investigation. Once that’s complete, the truth becomes readily apparent. At this point in the investigation the employer can be charged with insurance fraud and actually go to prison for defrauding the insurance company.

The same could be true for any instance in which a policyholder misrepresents their circumstances to the insurance company which results in a fraudulent lower price or a higher claim payout than what is merited.

For this reason, you should never misrepresent your circumstances to the insurance company when you apply for quotes or insurance or when you file a claim.

What About the Tow Auto Hauler Scam?

Here’s how it works. A towing business represents themselves as a towing service when, in reality, their principal means of revenue is hauling vehicles for auction companies or car dealerships.

What’s the problem with this method? Technically you are towing vehicles, right? Yes, but if you represent yourself as a towing company the insurance company takes this to mean a business that offers towing for disabled vehicles, motor clubs, roadside assistance, or even repo business.

Auto hauling is a premium rate classification by itself which typically demands much greater premiums versus a traditional towing service because the operator is exposed to greater hazards.

For example, a traditional towing company will have a radius of operation typically less than 50 miles and will not usually require federal filings unless they are crossing state lines due to their business being located near another state.

An auto hauling company, in contrast, may travel great distances. This places more inherent risk to the insurance company because the auto hauling transport company is on the road for a greater period of time. So, there are more opportunities for something to happen.

For this reason, an auto hauler, sometimes referred to as a hotshot transportation operation, will incur significantly higher premiums, sometimes two to three times more money compared to a traditional towing operation.

Some individuals thought they could outsmart the insurance company and be rated as a traditional towing operation, thereby paying lower prices.

In the event of any type of claim, this tactic could lead to a claim denial.

We’ll consider a fictitious claims scenario that involves this very issue in a subsequent article.

To reiterate: avoid misrepresenting who you are and what you do; otherwise, you may suffer great financial penalties and/or charges for insurance fraud.

We will discuss this in more detail in future posts.

Philadelphia Tow Truck Insurance — Call Right Now!

No matter if you are a new business venture, a towing company with years of experience, or you been canceled because of claims, we can help you! 

Call to speak with one of our licensed agents today by dialing 1-800-998-0662 or use our convenient online chat system to speak with an agent up until 8 PM Monday through Friday. 

Send us your request for quotes and information any time by clicking one of the links that you see listed below that is closest to your business address: 

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