Running a tow truck business is no easy task, especially where tow truck insurance is concerned. All the different coverages can get overwhelming, but the importance of having the right tow truck insurance can’t be understated. One type of coverage you may want to consider is garagekeepers insurance (but if you live in Texas or Virginia, you’d know this as storage location insurance.) The question on your mind might be how much does garagekeepers insurance cost. The truth is that the cost of garagekeepers varies from business to business because every wrecker operation is different. There are several factors that influence the cost of garagekeepers insurance, and we’ll go over them for you.
First of all, let’s define garagekeepers coverage.
The definition of garagekeepers insurance is this: garagekeepers provides protection for the clients’ cars that you have in your care, custody, or control. Pretty much that means that a customer has left the car with you for whatever reason – parking, storage, repairs, waiting for their mechanic’s shop to open. You’re responsible for looking after the vehicle, so you’re on the hook if something like a fire happens and destroys the cars on your premises. Garagekeepers can cover you for fire, theft, lighting, explosion, and vandalism, so you can see why your business might need garagekeepers insurance.
Pro tip: If you live in Virginia or Texas, this is what you would know as storage location insurance.
How much does garagekeepers insurance cost?
Now let’s talk about the factors that influence how much garagekeepers insurance costs. In general, garagekeepers can run from a few hundred to a few thousand dollars per year. There are a lot of different factors that could contribute to the cost of garagekeepers insurance. The following are a few of them…
1. The number of cars that you have in your care, custody, and control.
The more cars you have in your care at any given time, the more financial responsibility you have. You have to make sure you have enough insurance to completely cover your risks. The more cars you have to look after, the more insurance you need. And that has an impact on your rate – purchasing $100,000 of insurance will naturally cost less than purchasing $300,000 worth of insurance.
2. The average cost of the cars in your care.
If the cars you keep are on the more expensive side, you will need more insurance to cover your risk. Having a garage full of Mercedes-Benz is different than having a garage full of more affordable cars. The more expensive the vehicles, the more expensive they are to replace or repair if something happened. The more expensive to replace, the more the insurance will cost.
3. Your loss runs.
The insurance company will want to see your loss run, which is basically a record of all of the claims and losses your business has experienced. That gives them an idea of how risky it would be to insure your business, and that has an effect on your rates – the more risk, the higher the cost of tow truck insurance.
4. The type of work you do.
Businesses that only tow cars are not the only ones that can benefit from a garagekeepers policy. Auto body shops also need garagekeepers insurance, as do many other types of business. The line of work you’re in and the details of your business can influence your rates.
5. Your per-vehicle deductible.
Garagekeepers insurance usually has a per-vehicle deductible. Your deductible is the amount that you agree to pay before the insurance company will step in to cover the rest of a claim.
6. Your drivers.
Your tow truck drivers have an impact on your rates. That’s why it’s so important to make sure that you hire people who are committed to safety and who have experience driving tow trucks.
How do I get a quote for garagekeepers insurance?
The best way to find out exactly how much garagekeepers insurance will cost for your business is to get a quote from a reputable insurance broker, agent, or carrier. As you can see, there are a lot of factors that contribute to the cost of garagekeepers, so to accurately figure out how much you’ll pay, you have to give some details about your business and get a quote.
We can help you get tow truck insurance quotes, including quotes for garagekeepers insurance. We’ll shop around to help you find the best rate for your wrecker insurance. We know that tow truck insurance rates have been increasing, so our goal is to help businesses like yours save money. All you have to do to get a tow truck insurance quote is fill out our online form or give us a call today.