You might be starting a tow truck business in Tennessee. Or maybe you already have a towing business that’s been around for a while. Either way, you’re probably very involved in the financial side of operating the business. You might have a few questions about running your business, and one of those questions might be this – how much is tow truck insurance in Tennessee? The recent trend has been that tow truck insurance rates are rising. You want to know how much you’re going to have to pay. We’re going to go over how much tow truck insurance costs in Tennessee, and we’re also going to explain why rates vary from business to business. We’re also going to give you a few tips to save money on your tow truck insurance.
How much is tow truck insurance in Tennessee?
So, how much is tow truck insurance in Tennessee? Well, first we have to make a very important point. Tow truck insurance rates are extremely different from business to business. Even towing operations that look similar to each other can have very different insurance premiums.
Why?
There are a lot of factors that determine tow truck insurance rates. Insurance companies look at a lot of details when they set insurance rates. As we said, two businesses that operate in the same area, have the same number of trucks and drivers, and use similar vehicles can pay very different premiums.
Okay. Now that that’s been established, we can give you a range of numbers for how much tow truck insurance costs in Tennessee. However, this is only a general range. Your rates could fall between these two numbers, but they might not.
Tow truck insurance in Tennessee could cost anywhere between $4,500 to $11,000 per power unit per year. A rural business with a clean loss record could be at the lower end of that range. A business with tickets and accidents could fall at the upper end of that range. But there are many factors that can determine where your business falls in that range – or if your business will fall outside of that range.
What are the factors that will affect the cost of Tennessee tow truck insurance? Let’s take a look.
What factors affect the cost of tow truck insurance in Tennessee?
Below are some factors that can impact the cost of tow truck insurance in Tennessee.
- Claims/losses/accidents
- The drivers who work for you
- Traffic tickets
- The tow trucks or wreckers – year, make, model
- How many trucks are in your fleet
- What type of towing you do – disabled cars, roadside assistance, repossessions, towing for an auto shop, towing for the police or a municipality
- What kind of car you usually tow (new, used, disabled, etc.)
- Where you’re located
- Your radius of towing
The insurance company uses the above details to decide how much of a risk your business would be to insure. If your business would be a big risk for the insurance company to take on, your rates could be higher. To illustrate, if a business has a history of accidents and traffic tickets, their rates will probably be pretty high. That’s because the insurance company sees them as being more likely to have a claim or a loss.
Now. To get an accurate idea of how much tow truck insurance will cost for your tow truck business, you’ll need to get a tow truck insurance quote. By getting tow truck insurance quotes, you’ll have a better idea of how much your Tennessee tow truck insurance will cost. It’s probably not going to be accurate if you just try to get a “ballpark” number. (And fortunately, getting a tow truck insurance quote is easy when you work with our team.)
How to save money on tow truck insurance.
You might be a little bit nervous about how expensive the price tag for insurance will be. We’ve got a few tips to help you keep your tow truck insurance rates down. A lot of these tips are about improving safety at your towing business. Safety can help you avoid accidents, which can help you keep your rates down.
- Have a careful, thorough hiring process for new tow truck drivers.
- Create workplace safety policies that explain your expectations for driver behavior (and lower your drivers’ chances of getting into an accident.)
- Avoid filing minor claims against your insurance.
- Implement a pre-trip vehicle inspection routine (with accompanying paperwork.)
- Keep your tow trucks in tip-top shape with regular vehicle maintenance.
- Ask your agent about possible discounts.
- Raise your deductible (if you’re financially comfortable doing so.)
- Get multiple tow truck insurance quotes.
So, that’s how much tow truck insurance costs in Tennessee, why rates are so different for every business, and some strategies for keeping your premiums down. We encourage you to get tow truck insurance quotes because rates vary so widely from towing business to towing business. Getting a quote will give you the best idea of how much tow truck insurance costs.
Speaking of getting quotes, our tow truck insurance experts can shop your rates for you. We can help you get multiple quotes for Tennessee tow truck insurance, and those quotes can help you compare coverage and pricing. Our goal is to help you get great Tennessee tow truck insurance at a great rate. To get started with your quotes, you can fill out our online quote form or give us a call today.
