So, you’ve decided to go for it – you’re going to venture out on your own and start a tow truck business. That’s great! You’ll be able to enjoy the freedom of owning your own business and being the master of your own destiny. However, you have to be willing to put in long hours, rain or shine, and do hard work. A day in the life of a tow truck operator is driving to the car that needs to be transported, hooking the car up, driving it to its new location, and then unloading it…and then doing it all over again. Now, if you know this is the life for you, you’re probably wondering how to start a tow truck business.
Insurance
There are a lot of different types of tow truck and wrecker coverage out there. In this section of the blog, you’ll find various articles that deal with different topics relating to the insurance aspect of running a towing business. Our goal is to help decode all of the tow truck insurance-speak that’s out there so that you can make sure your business is getting the coverage that you need. There are a lot of risks for tow truck businesses, and we want to help you stay protected from them.
From garagekeepers insurance to wrongful repo, to garage liability, to physical damage, to auto liability, to on-hook/in-tow coverage, we can help answer any questions you might have about the coverage that you need to protect your tow truck business. Check out the articles below for some handy information about tow truck insurance. And feel free to call us to discuss your specific business and the coverage you need – we’re here to help!
Five Ways to Cut Workers Comp Costs
When a towing company encounters considerable increases in workers comp costs, internal initiatives targeted at lowering tow truck insurance costs and spending are typically launched. More than merely averting a few accidents is necessary to cut costs; you also need a sound safety program. Thus, a safety program that complies with OSHA requirements can result in significant financial savings by lowering injuries.
Fortunately, the following actions will ultimately lower workers comp costs. Now let’s discuss.
Do I Need Commercial Towing Insurance?
When you run a towing business, you may be in charge of a large fleet of tow trucks, all of which have a chance of suffering significant damage out on the road.
Commercial towing insurance would help in this situation. This type of insurance, which is created specifically for tow truck businesses, is a necessary expense.
With the help of commercial towing insurance, you can rest assured knowing that your assets and drivers will be taken care of in the event of a mishap.
What Does Towing Business Insurance Cost on Average?
Tow truck companies offer a variety of services beyond the standard tow. For instance, they do roadside repairs if you have a flat tire or need a jumpstart. They also tow away vehicles that are illegally parked. Lastly, a tow truck can be sent to retrieve a vehicle if an automobile owner stops making payments on it. This task is often referred to as repossession work.
Whatever the case may be, the towing sector is exposed to a lot of risks. Therefore, business owners in the industry need to take the necessary precautions and insure their tow trucks. With the help of tow truck insurance, you can rest assured knowing your business is safeguarded. However, you can only reap the benefits if you understand what protection it provides and how rates are calculated.
In this article, we’ll discuss the average cost to insure your towing business, as well as the many factors that can affect your rates. Let’s get started!
How much does a tow truck cost?
You might be thinking about starting a tow truck business. Maybe you’ve been thinking about it for a while now, but you’ve got this question on your mind: how much do tow trucks cost? That’s a great question. The cost of a tow truck depends on the options that you choose for your truck. Most towing equipment is customized to suit the needs and convenience of the end user, and the choices that you make influence the tow truck cost. Depending on the options you choose, the cost of a typical tow truck can be anywhere between $58,000 and $850,000.
Anyways, that’s our disclaimer. Below we have some typical pricing for different types of tow trucks.
Workers Compensation for Towing Businesses: Why You Need It
Workers compensation is required in most states for businesses that have one or more employees. However, the requirements vary from state to state. The purpose of this insurance is to compensate employees who are injured on the job and no longer able to work.
Therefore, businesses that entail a high level of risk should be more inclined to protect themselves and their workers. So, if you run a towing business you’ll definitely fall into this category! It’s important to note that this insurance coverage doesn’t come cheap, and as a towing company, it would be wise to shop around for a pocket-friendly insurance policy.
Let’s discuss further the importance of workers compensation for towing businesses.
What Is Garagekeepers Liability Coverage?
Companies in the business of storing customer vehicles need to be protected. For example, tow truck drivers who are called to tow a car in the middle of the night frequently must store the cars in their shops for the night. If a few hours later, someone breaks into the shop and vandalizes the customer’s vehicle, the driver can be held liable. So, in instances like these, you’ll want garagekeepers liability coverage.
In this article, we’ll discuss the importance of this insurance, as well as who needs it and what isn’t covered. Let’s get started.
How to Choose the Best Tow Truck Insurance Company
As the population grows, so does the number of cars on the road. That means there’s a growing demand for towing services and tow truck drivers. To combat the risks on the road, businesses need tow truck insurance.
Due to the size of tow trucks, they have an increased chance of getting into a collision. Also, due to the nature of their job, they’re more likely to sustain life-threatening injuries. Therefore, to protect your towing business and drivers, you need quality tow truck insurance.
We understand commercial auto insurance isn’t cheap; therefore, it’s our mission to help you find the best coverage.
How to Get Cheap Tow Truck Insurance
Reliable commercial auto insurance is often very costly; however, it would be detrimental to go without it. Tow truck insurance is vital for many reasons and not having it could land you in a great deal of trouble. Fortunately, there are a few ways to get cheap yet reliable tow truck insurance. This way your drivers and your business will be protected.
Here are some ways to save big on your tow truck insurance. Let’s get started.
Actual Value vs Stated Value for Tow Trucks
Unfortunately, as a towing business owner, you have to combat many risks. Even if you comply with regulations, follow protocol, and make sure your drivers maintain a clean record, the risk of an accident is always there. Therefore, understanding an insurance policy is crucial for the sake of getting adequate coverage.
Since your tow trucks are high-dollar pieces of equipment, you want to make sure they’re fully protected. Therefore, you’ll want to understand the difference between actual value and stated value. Failing to know the difference can possibly leave your tow trucks underinsured!
In this article, we’ll go over in-depth actual value vs stated cash value for tow trucks. This way you can fully understand your tow truck insurance policy and coverage options.
