Whether you’re starting up a tow truck business in Texas or you’ve got an established business, you’re probably very concerned about the financial side of things. On the list of questions you have about running your business is this – how much is tow truck insurance in Texas? Tow truck insurance rates have been going up, and you want to know how much you should expect to pay.
We’ll explain how much tow truck insurance costs in Texas, why rates are different from one business to the next, and give you some tips on how to save money on your tow truck insurance.
How much is tow truck insurance in Texas?
We know this is the question of the hour, but there’s something very important that we have to go over concerning the cost of tow truck insurance. Rates are very different, even among similar businesses.
Why do rates vary so widely?
Insurance companies look at a variety of factors when they calculate rates. There are many details about your business that affect the cost of your tow truck insurance. Even businesses that are similar to yours – operate in the same area, have the same number of trucks – can pay very different premiums.
So, that being said, we can give you a loose range of pricing to give you a rough idea of how much tow truck insurance costs in Texas. But keep in mind that this is just a very rough estimate. Your rates might fall anywhere in this range, or they might be outside of this range.
Tow truck insurance in Texas could cost anywhere from $2,000 – $25,000 per power unit per year. Businesses at the lower end of that range would most likely be rural businesses with clean loss records, whereas businesses at the upper end of that range might have tickets and accidents.
However, where your business falls within that range (or outside of that range) depends on many, many factors. What exactly are these factors that affect the cost of tow truck insurance? Let’s answer that question next.
What factors affect the cost of tow truck insurance in Texas?
The following are all factors that can affect the cost of tow truck insurance in Texas.
- Your drivers
- Your loss history/claims
- Tickets
- Your tow trucks/wreckers (year, make, model)
- How many trucks you have
- What kind of towing you do – roadside assistance, towing disabled cars, repo, towing for an auto shop, police/municipal towing
- The type of cars that you usually haul (new, used, disabled, scrap)
- Your location
- Your radius of operation
These details help the insurance company figure out how much risk your business faces – and how much of a risk you are to insure. The “riskier” your business is, the higher your rates could be. For example, a business with a history of traffic tickets and accidents will probably pay more for their insurance because, to the insurance company, they’ve got a higher chance of having a claim or loss.
The best way to get an accurate idea of how much tow truck insurance will cost for your business is to get a tow truck insurance quote. Going through the process of getting Texas tow truck insurance quotes will allow you to get a number that’s based on the specific risk that your business faces. A “ballpark” estimate that does not come from a quote from a carrier will probably not be accurate.
How to save money on tow truck insurance
If you’re worried about the price tag of your tow truck insurance, we’ve got some tips for keeping your rates down. Many of these tips are related to improving safety at your towing business, which can help you avoid accidents and therefore keep your rates down.
- Be thorough when hiring tow truck drivers.
- Try to avoid filing small claims.
- Have workplace safety policies that outline driver behavior and that will help your drivers avoid accidents.
- Have a pre-trip vehicle inspection procedure.
- Maintain your tow trucks.
- Don’t forget to ask about potential discounts.
- See if raising your deductible could lower your premium (if you’re financially comfortable with raising your deductible.)
- Shop for multiple quotes.
So, there you have it. Now you know how much is tow truck insurance in Texas, why rates vary so widely from business to business, and how you can keep your rates down. Since rates are so different for every tow truck business, we highly encourage you to get an insurance quote so you know exactly what sort of pricing you’re looking at.
Our team of tow truck insurance experts can help you get multiple quotes for Texas tow truck insurance. We understand the risks you face and the coverages you need to protect yourself from them. By shopping for your Texas tow truck insurance you can compare coverage and pricing options, which can help you find the best tow truck insurance at the best rate. Get in touch with our team by filling out our quote form or giving us a call today.
