If you’ve got a tow truck business in Colorado or if you’re thinking of a starting a tow truck business, you’re probably wondering about this question: how much is tow truck insurance in Colorado? You want to know how much you should expect to pay for your towing insurance. But the thing is that tow truck insurance premiums depend on a lot of different factors, so rates vary widely among towing businesses. We’ll explain some of the things that affect your rates and we’ll throw in some tips for saving money on your tow truck insurance.
How much is tow truck insurance in Colorado?
It’s really important that we explain something before we proceed any further.
Tow truck insurance rates can be very, very different between various businesses.
There are many details that insurance companies look at when setting rates, and those details about your business affect how much you’ll pay for tow truck insurance in Colorado. Even if there’s a similar business in your area – maybe they have the same number of trucks and drivers – they will probably have a different premium than your business will.
With that being said, keep in mind that the numbers we’re going to mention are only a loosely estimated range – your rates may fall within this range, or they might not. Your drivers, your location, your loss history, and so on affect your rates.
Tow truck businesses in Colorado could pay between $7,000 and $14,000 per power unit per year for tow truck insurance. The lower end of that range could be a rural business, and the upper end of that range could be an urban business. However, your location is only one of many factors that affect your rates.
What factors affect the cost of tow truck insurance in Colorado?
Here are some of the details about your business that can have an effect on your tow truck insurance premiums:
- Speeding tickets/Traffic violations
- Your loss history
- Your tow trucks (year, make, model)
- How many trucks you have
- What kind of towing you do (roadside assistance, repo, towing disabled cars, etc.)
- What kind of cars you’re usually hauling
- Your location
- Your drivers
- Your towing radius
The reason these details play a part in your premium is that they give the insurance company an idea of how risky your business would be to insure. It shows them how likely you are to have a claim. If you’re a lower risk, you’ll probably see lower rates. If you present more risk, you’ll probably see higher rates. So, following that logic, a business with a history of traffic tickets or claims will probably have higher tow truck insurance rates. The insurance company sees them as being more likely to have an accident or claim.
The best way to give yourself an accurate idea of how much your tow truck insurance will cost is to get quotes for tow truck insurance. That way you’re getting a true reflection of what you’ll be paying for Colorado tow truck insurance. A ballpark estimate will most likely not be very accurate.
How to save money on tow truck insurance
You might be a little nervous about how much your insurance is going to cost. We’ve got some tips for managing your rates and getting lower premiums. Note that many of these tips are about improving safety at your business so you can avoid claims (and get better rates because of it.)
- Have a thorough hiring process for new tow truck drivers.
- Have a pre-trip vehicle inspection process.
- Create workplace safety policies outlining your expectations for employee behavior.
- Take advantage of insurance discounts.
- Maintain your tow trucks properly.
- Consider raising your deductible if you’re financially comfortable doing so.
- Avoid filing minor claims.
- Get multiple quotes for Colorado tow truck insurance.
So, that’s what you need to know about the cost of tow truck insurance in Colorado. Insurance companies look at a lot of different factors about your tow truck when they give quotes, which is why rates can be very different from towing business to towing business. That’s why it’s a good idea to get multiple tow truck insurance quotes.
We have a team of tow truck insurance experts who can help you get great coverage for a great rate. We work with lots of towing businesses, so we understand the coverages you need. We can help you get multiple quotes so that you can compare coverage and pricing. Get started with your quotes by filling out our online form or giving us a call.
