Tow truck insurance isn’t cheap, we’re not going to lie. It can get pricey, especially depending on where your business is located and how many trucks you have. There are a lot of factors that play into your tow truck insurance rates, but we have some pro tips that will help you save on your premiums. You know that you need insurance to protect your business, your drivers, and your tow trucks, but there’s no reason that you can’t save yourself some cash while you’re at it.
1. Hire the best drivers for the job.
Your drivers have a major impact on your tow truck insurance rates. If your drivers have tickets or accidents on their driving records, that has a significant effect on the premiums that you’ll pay – meaning that your rates will go up. That’s why it’s important to be diligent during the hiring process and run MVRs and background checks on your drivers.
2. Take care of minor claims by yourself.
Any loss or claim can be a mark against you. The insurance company will look at your loss-runs, or a record of all of your losses, when it comes to figuring out your rates. If you take care of minor losses on your own – say, a cracked windshield or another small repair – and don’t file a claim with your insurance company, you’ll have a cleaner loss record. If you’re thinking about filing a loss, consider the total cost of the damage and your deductible. Is it really worth filing that claim?
3. Commit to safety policies.
You need to establish safety expectations for your business. You can avoid claims by doing everything you can to prevent them in the first place, and that means putting an emphasis on training and safety meetings. You need to stress good driving habits and record-keeping for your tow truck business.
4. Make pre-trip vehicle inspections a part of your drivers’ routine.
Doing a pre-trip vehicle inspection can help you avoid and prevent claims before they happen. Your drivers should do a vehicle inspection before they roll out to save the day. Lowering your tow truck insurance rates is all about avoiding claims, and looking after your tow trucks is a great way to do that.
5. Have strict policies about distracted driving.
Distracted driving is a major cause of car accidents. Texting and even talking on the phone take the driver’s attention off of the road, and even a momentary lapse or distraction can cause an accident and cause serious harm to others. Your business should have a strict policy about distracted driving and make it very clear that you expect your drivers to keep their attention on the road. It’s for their own good, too.
6. Consider using GPS systems to check speed.
Having GPS systems in your wreckers or rollbacks to monitor speed will deter your drivers from pushing the speed limit and potentially getting a ticket. Speeding isn’t safe, so to avoid accidents and costly tickets – and insurance rates – you can think about using GPS.
7. Identify and manage your risks to keep a clean loss record.
You need to think about what puts your business at risk and what dangers you face. What could potentially cause a damaging loss? A lawsuit? An accident? Think about these things and make sure that you do everything you can to lower your chances of facing a loss. Avoiding claims and minimizing risks will help you reduce your tow truck insurance rates.
8. Maintain your tow trucks.
Make sure that your drivers know to report any maintenance issues that they find with their trucks ASAP. They shouldn’t drive a tow truck that has any unsafe issues or needed repairs. Your drivers need to know the proper way to report a maintenance issue – who to tell and how to document it. They should also be trained to recognize any problems with their tow truck. Keep your tow trucks in good working order and make sure that they’re up to the task of towing vehicles.
Saving money on your tow truck insurance rates is all about reducing your risk and chances of having a claim. We can help you identify your risks and make suggestions for how to manage them. We want to help you make sure that you’re protected from anything the road can throw at you, and we can help you create an insurance plan that’s crafted just for your tow truck business. All you have to do is fill out our quote form or give us a call today.