If you’re getting into the tow truck business in New Jersey, you might have a few questions about start-up costs. How much will a tow truck cost? How much should I charge for towing a car? But one of the most important things you can ask as a businessperson and fleet owner is, “How much is it going to cost to protect my business properly?” The answer varies state by state and business by business. So, while we can give you a roundabout estimate, your tow truck insurance rates may look a little different. Here are some of the factors that can determine your rates and about how much tow truck insurance will cost in New Jersey.
How much is tow truck insurance in New Jersey?
As we’ve said, New Jersey tow truck insurance rates can vary from company to company, even if your business is in the same state. Sometimes, even if you have the same number of trucks and drivers as another company in your area, you could end up paying very different premiums.
That being said, the average range of tow truck insurance premiums in New Jersey is about $7,000 to $18,000 per power unit per year. Businesses in rural areas with clean driving records and claim history could fall on the lower end of that spectrum. However, businesses in urban areas with not-so-great driving records and claims histories could end up having premiums somewhere on the higher end of the scale.
Again, your rates will depend on your particular tow truck fleet. So, insurance premiums for your tow truck business may be higher or lower than this range. For a true idea of your rates, you’ll have to get a quote with an insurance agent. They’ll be the ones who will ask you about certain business factors that can determine what your rates will be.
What factors affect the cost of tow truck insurance in New Jersey?
There are various factors that can determine a towing company’s insurance rates – some that you may not even expect. Usually, the following factors affect your tow truck insurance rates:
- Your drivers and their individual Motor Vehicle Records (MVRs)
- Your business’s claim history (also called loss runs)
- The type of tow truck(s) you have (i.e. their year, make, and model)
- What kind of towing you do (i.e., repo work, secondary movement, roadside assistance, etc.)
- Your business’s location
- How many trucks you have
- Your towing radius
- Traffic tickets
These are the factors that can give your insurance company an idea of how risky your business is to insure and how likely it is that you’ll file an insurance claim. That’s why the more tickets and claims you have on your record, the more your insurance rates will probably be.
How to save money on tow truck insurance
There are also other great ways to save money on tow truck insurance – most of which focus on improving safety and business practices. This is why it’s important to look at your tow truck insurance as something that grows and changes with your business over time. Some of the best ways to get cheaper rates on your tow truck insurance are to:
- Avoid filing small claims
- Raise your deductible, if possible.
- Have solid pre-trip vehicle inspection standards
- Have routine maintenance on your tow trucks
- Ask about tow truck insurance discounts
- Clearly outline workplace safety behaviors
- Have a thorough process for hiring new, safe tow truck drivers
You may also want to ask if there’s a payment plan available for your policy. Depending on the carrier, there may be discounts for paying in full at the beginning of your plan year, but if it’s easier on your company, ask your agent about a consistent payment plan.
So, that’s the nitty-gritty on how much tow truck insurance in New Jersey may cost. Again, it’s important to note that each business and their situations are different. So, even asking about the tow truck rates of other companies in your area aren’t going to give you a clear picture on what you might pay. Truly, the best way to know what you may pay for tow truck insurance is to get quotes.
We know that the quote process might seem time-consuming, but that’s why our agents are here. We’ll take the time to get to know your business and get customized quotes for your business. We’ll go over the best options for you and find ways to save you money on your policy. We’ve already helped tons of tow truck businesses get great insurance at a great rate. So now, it’s your turn. To start getting quotes for the best tow truck coverage and rates, just fill out our easy online form, give us a call, or chat live with one of our insurance experts.
