An insurance policy for a tow truck business often includes liability coverages for personal injuries, property, and other damages. Moreover, a tow truck insurance policy offers comprehensive coverage for collision, fire, and theft. If you run a business that deals with trucks or heavy vehicles, you might have questions regarding insuring them. For a new trucker, understanding the tow truck insurance policy is a little overwhelming.
Don’ fret if you don’t know how to go about it. Here, we’ve listed the top three common questions regarding tow truck insurance.
Commonly Asked Questions Regarding Tow Truck Insurance
1. How Much Can Tow Truck Insurance Cost?
It’s important to keep in mind that tow truck insurance costs vary, depending on your business. Different aspects of your business can impact your rate. For instance, an insurance carrier looks at the following aspects when providing a quote for a tow business.
- How long you’ve been in the tow truck business
- Your location
- Tow radius
- How many trucks your service has
- Type of tow trucks you use ( model, age, and condition)
- Loss-runs ( number of claims or losses you have had in the past)
- Your risks (roadside assistance, towing business type, or repo)
- What cargo haul you carry
- Number of drivers you have
To answer the question precisely, you can reduce your tow truck insurance costs plenty of ways. The best way to do it is to raise your deductible, which decreases insurance rates. Typically, the larger deductible has the lowest premium to pay. It’s because you share the risk of a crash or any damage with your insurer.
Keep in mind that the driving records of your towers can also affect the insurance rates. That’s why you must check each driver’s motor vehicle record (MVR) before recruiting them. Also, provide training to make an efficient team with excellent driving skills.
3. Why is Getting Tow Truck Insurance Important?
If you own a towing company, know that face many risks. And to tackle them, you need optimal protection. Buying tow truck insurance is one way to get auto-risk that can help you manage your expenses when any driver accidentally injures a person or causes harm in a crash.
All in all, if your business has anything to do with towing, it needs some kind of tow truck insurance. Thus, the given questions will help you understand some important aspects related to tow truck insurance.