Towing a Car that has No Insurance

Any vehicle that is being driven on the road and has been registered with the Department of Motor Vehicle should have a valid license. However, there are instances when a license will not be required on the towed vehicle and these are:

  • If the vehicle is not registered with the Department of Motor Vehicle; in this case, this vehicle should not be operated on a public highway. If you must use it, it should be on a private property.
  • If the vehicle is being towed to a shop or to a buyer’s home, you will not require having insurance on the vehicle being towed.
  • If the vehicle being towed is not currently in an operable state, insurance will not be required.

You may have a vehicle that has been sitting in the backyard for a long time and if you choose to have it sold or repaired, you will not need to have an insurance cover. There is a requirement to notify the Department of Motor Vehicles that your vehicle is no longer operational to avoid incurring penalties due to non-payment of insurance.

When towing a vehicle that does not have an insurance cover and the vehicle has been filed as non-operational, the cover on the towing truck will be extended to the towed vehicle. If the vehicle being towed accidentally damages another vehicle while in tow, the insurance company that has insured the towing truck will pay for the damages of the vehicle being towed.

There will be a need to confirm with the insurance company that is covering the towing truck if the cover will extend to the towed vehicle if it does not have an insurance cover of its own. There are insurance companies that will only agree to pay if both the towing vehicle and the vehicle being towed are registered in the same name.

In case an accident occurs during the towing of an uninsured vehicle, the insurance company that covers the towing truck will not pay for the damages caused to the vehicle being towed. The owner of the towed vehicle must pay for the damages caused to his vehicle during the towing.

There is an insurance cover that one can undertake that will cover any damages to the towed vehicle. Any person who is afraid that his car might be damaged while being towed can take this cover and if anything goes wrong, he will be compensated accordingly.

If you intend to tow your vehicle to a specified destination, it will be possible to buy an insurance cover through the towing company. This will give the towing company the responsibility of having the liability coverage and if any claims of negligence are made against the driver of the towing truck, the company will pay for the damages.

If you fail to purchase liability insurance with the towing company, it will be impossible to prove that the company’s negligence caused the damages done to your car and you will be forced to pay for your car’s damages. You have to consider the safety of your vehicle and the loss you would incur before you choose to have it towed without an insurance cover.