Ah, the joys of paying bills. You’ve got a lot of expenses to juggle as the owner of a towing business, but your tow truck insurance payment is one that you can’t drop. You’ve got a lot on your plate with making sure your business is running smoothly, and sometimes things happen and insurance falls by the wayside. But there may be consequences for paying your insurance bill late – it’s not exactly like returning a library book past its due date and having to pay the dime-a-day late fee. Your insurance renewal could go up. We’ll explain why it’s so important to pay your bill on-time.
The definition of an insurance renewal
A renewal is simply an insurance policy used to replace one that is soon to expire. Your insurance company may offer to renew your policy when the old one is close to expiring. When you get to your renewal date, it means that you must renew your policy or get new insurance to make sure you have the coverage you need. Most policies are written for one year, meaning that you need to renew your insurance every year.
The renewal date relates to when you first got the policy. There’s no specific time of year that renewals happen. It just depends on when you got your insurance. Keep an eye out for information about renewing your insurance a month or two before your renewal date. As we said, your insurance policy is most likely written to last one year.
Now, the thing about renewals is that you could see an increase in your insurance rates. Let’s look at some of the reasons that could happen.
Late payments can mean higher renewals
If you have late payments for your insurance bills, you might see a higher renewal rate than you were hoping for. You could end up paying more for your insurance. Tow truck insurance rates have been going up for a number of reasons, so it’s important that you do everything you can to keep your rates from increasing.
Moral of the story: pay the insurance company on time. They don’t appreciate late payments, and like we said, the consequences could be a little steeper than you anticipated.
What else could cause your insurance renewal rate to be higher?
Of course, it’s not only late payments that can cause your renewal rate to be higher than your previous premium.
If you’ve made claims against your policy or one of your drivers was involved in an at-fault accident, you could see an increase in your rates. That’s because you’re now more of a risk to insure.
The same goes for traffic violations such as speeding tickets. Data shows that speeding causes a higher chance of accidents. And insurance companies don’t exactly love risk, so your rates could go up.
So, it’s extremely important that your tow truck drivers refrain from both distracted driving and speeding. Not only can both risky driving practices cause accidents, but those accidents can really hurt your tow truck insurance rates.
Pro tip for renewal time:
Your renewal is a great time to do an annual review of your insurance policies and coverages. Do you still have the coverages and limits you need? Have there been any changes to your business that could mean you need to adjust your tow truck insurance? Renewal time is a good time to talk to your agent and go over your insurance with them. So, take the opportunity to re-evaluate your insurance needs.
Renewals happen every year (or whenever your policy expires.) You may see an increase in your rates if you’ve made late insurance payments. You could also see an increase in your rates around your renewal if your business has experienced any accidents or if any of your drivers have gotten tickets for traffic violations. So – to avoid seeing a major increase in your rates, make sure to pay your bills on time and establish a high standard of safety at your tow truck business.
Want to save money on your insurance? Our team of tow truck insurance experts would be happy to help you get quotes for your insurance. We’re pros at helping towing businesses find the best coverage at the best rate. All you have to do to get in touch with us is fill out our online form or give us a call today.