Towing Services - What You Need to Know

Posted by Rachel Monroe on July 24th, 2023

Everyone experiences vehicle problems from time to time. When it happens, you need a fast and reliable towing service.

A towing company provides roadside assistance and private property impound for vehicles that have stopped working or are illegally parked. They also work with law enforcement and trucking companies on non-consensual vehicle seizures.

Roadside Assistance

Roadside assistance is a service that can help drivers when their car breaks down. It can include replacing a flat tire, fixing a dead battery and jump starting the car. It can also cover services such as towing a vehicle to a repair shop, if necessary. This type of assistance is often included as a rider on automotive insurance policies or offered as a membership.

Towing companies use dispatching centers to receive requests and send drivers to the scene of the breakdown. The dispatching center can receive calls via phone or electronic devices, such as laptops or tablets. The dispatcher can then assign the nearest driver to the call.

You should establish long-term goals for your towing company. This includes how much revenue you expect to bring in and what other services you plan to offer. You may also want to list startup costs, equipment and insurance needs. You should obtain business insurance, including general liability, property and auto, to cover the costs of lawsuits, damage to your towing trucks or a settlement.

Vehicle Recovery

Getting your car stuck on the side of the road is an awful experience, and you’ll probably want to call a towing service right away. These companies are trustworthy, and their drivers can help you get your vehicle back on the road quickly and safely.

The towing industry is heavily regulated, particularly with regard to recovery work following road accidents. This may involve licensing and post accident allocation schemes, to limit the number of vehicles attending accident scenes.

If you’re a new tow truck owner, it’s best to register your business as a limited liability company and obtain an employer identification number. This way, you can open a business bank account to separate your finances from your personal ones and keep track of what expenses are legitimate business costs. You’ll also need liability and business insurance to operate your towing San Jose services. You should also consider buying a quick-pick or self-loader towing truck. These trucks are equipped with a hydraulically inclined bed that can be lowered to the ground and used to haul vehicles to a secure storage area.

Vehicle Storage

Towing services aren’t just for car owners – they can also help with other vehicles, such as motorcycles and all-terrain vehicles. Additionally, they can even handle commercial vehicles like trucks and buses.

The first step in starting a towing business is determining what kind of towing services you’ll offer and who you’ll serve. For example, are you going to go the B2B route and target companies that need roadside assistance, such as AAA? Or are you going to focus on heavy load towing, such as transporting motorhomes or semi-trucks?

If you’re a consumer, make sure the towing company you’re working with is licensed by checking their medallion number or calling 311. Additionally, look for a firm that treats customers with respect and doesn’t try to take advantage of them. This is especially important in a crisis, such as an accident or a vehicle breakdown. A good towing service will be able to respond quickly to your needs.

Insurance Coverage

When you are stranded after a crash and in need of towing services, it is important to only work with licensed towing companies. Be especially careful about private companies that boot cars from private driveways or on private streets. They often do so without properly checking the car for safety and security issues. For example, they may not inspect the vehicle for fluid leaks or damage to the steering and braking systems, and they may even try to convince you that your car needs to be towed when it's still drivable.

If you are starting a towing business, make sure your company has the proper liability and commercial insurance. There is a high level of risk involved in this line of work, and you don't want to be held responsible for any mishaps. If your business focuses on transporting vehicles over long distances, you may also need specialized hauling equipment. Some of this equipment includes hydraulically inclined beds that can be lowered to ground level to load vehicles, and a winch that can pull vehicles up and over tall obstacles.