Operating a tow truck comes with more risk and exposure than driving a regular vehicle. Since the towing industry is such a high-risk sector, you’ll likely be paying more for your insurance. However, other factors can impact your insurance premiums.
For instance, the drivers you hire can dramatically affect your insurance costs in the long run. This is because their experience, driving history, and age are used by the insurance company to determine your business’s level of risk. As you know, insurance companies don’t particularly like risk.
Therefore, to avoid high insurance premiums, you need to know what red flags to look for when hiring drivers.
In this article, we’re going to discuss how the drivers you hire affect your towing insurance and what red flags to look out for.
How the Drivers You Hire Affect Your Towing Insurance
The first thing you need to look over before hiring a driver is whether or not they’ve had any serious violations within the past 3 years. This is a key factor that can drive up the cost of your insurance policy.
Although every insurance company weighs violations differently, there are a few key ones that raise big red flags.
- Driving with a suspended license
- Driving under the influence
- Fleeing the scene of an accident
- Going 20 mph over the speed limit
- Speeding in a school zone
- Texting and driving
Apart from these serious violations, an insurer will consider the number of years the driver has been operating a tow truck. A driver with more experience would be less likely to file an insurance claim.
In addition, an insurance company may want to know if your drivers have their CDL or not. A CDL is highly important as it can help lower your insurance premium for your tow trucks. Although licensing requirements vary depending on the state you operate in, your drivers should have a CDL. Drivers who possess a CDL are an asset since they’ve received extensive training and possess valuable knowledge on operating a commercial vehicle.
As a result, your insurance provider may lower your premiums since your drivers are trained and experienced.
Also, another factor that can affect your premiums is the age of your drivers. Younger drivers tend to have less experience on the road and may be more reckless.
Protecting Your Business
If you want to keep your tow truck insurance rates low, then you need to take the hiring process very seriously.
Therefore, you need to check the motor vehicle report (MVR) of all your tow truck driver applicants. An easy way to do so is by giving your insurer the person’s DL No. and date of birth. In some states, an insurer may not be able to disclose this information but they can tell you whether or not the driver would be considered desirable.
As a result, the best way to safeguard your business is by carefully screening your applicants. Failing to do so can leave your business with high premiums and costly expenses.
We hope you now understand how your drivers can affect your towing insurance. Therefore, the best thing to do is hire drivers with experience and a CDL, as well as emphasize the importance of safety and training.