Reliable commercial auto insurance is often very costly; however, it would be detrimental to go without it. Tow truck insurance is vital for many reasons and not having it could land you in a great deal of trouble. Fortunately, there are a few ways to get cheap yet reliable tow truck insurance. This way your drivers and your business will be protected.
Here are some ways to save big on your tow truck insurance. Let’s get started.
Ways to Get Cheap Tow Truck Insurance
Many towing businesses tend to stay with the same insurance company that’s been providing them coverage for many years. While there’s no particular problem with this, you could be missing out on cheaper rates elsewhere.
It’s worth mentioning that your current insurance company is likely increasing their rates every year. Therefore, putting a dent in your profits. Many businesses tend to accept these losses because they don’t want to go through the hassle of searching for another tow truck insurance provider.
However, you would be surprised to learn that shopping around once a year can be very beneficial. Consider seeking assistance from an agent with multiple carrier options. This way they can do all the hard work of shopping around for you.
That being said, there are certain things that influence the cost of your tow truck insurance.
What Affects the Cost of Tow Truck Insurance?
Once you provide the following information to your insurance agent, they’ll be able to accurately determine a quote. The following factors can greatly impact your tow truck insurance rates.
So, if you’re looking to save, here’s some tips:
The Type of Tow Trucks You Have
Agents will look at the types of tow trucks your business has, as well as how many. The size and value of them are massive determinants in the cost of your tow truck insurance.
Your agent will need to know the value of all your tow trucks to decide on a proper quote. Essentially, if your trucks are smaller and not too expensive, your rates will be lower compared to larger more expensive trucks.
What You Tow
Do you tow new vehicles for car dealerships? What about broken down or wrecked vehicles? The type of towing you get into affects your rates tremendously.
For instance, towing brand new cars will cost you more since the load is more valuable. Which in turn means more risk on your part. If you decide to tow vehicles after an accident you’ll pay less since the car has likely depreciated in value.
Therefore, if you want to save money then you may want to reconsider what types of vehicles you tow.
Your Hours of Operation
Your business’s hours of operation will greatly influence your tow truck insurance rates. For instance, a towing service that operates 24 hours a day will be paying more compared to one who only operates 8 to 9 hours a day.
The reason for this is night towing is a lot more dangerous. For instance, there’s a greater chance of getting into an accident or hitting wildlife since visibility is reduced.
If you want to save money on your rates, consider changing your hours of operation.
A surefire way to get cheap tow truck insurance is by incorporating various safety programs into your training process. It would also be a good idea to require your drivers to enroll in a safety program once every year. This way your drivers stay up-to-date on current safety standards.
Show proof to your insurer so they know you take safety very seriously at your towing business. You never know, you could qualify for some great deals!