While managing the risks that are unique to their business, working with an insurance firm that has expertise offering insurance for towing companies will help them achieve the best premium prices. Licensed, skilled insurance agents that specialize in commercial towing insurance know that each business’s unique risks necessitate a tailored insurance policy. Insurance plans may be compared to ensure that you are receiving the greatest deal and only paying for the coverage your business requires.
Specifics of the Premium Cost.
Basic tow truck insurance costs $450 per month, or $4,500 to $5,000 per year, for a single tow truck used for roadside and recovery towing. It is also needed by law to have a general liability policy, which costs between $97 and $159 per month for a small tow truck business with little coverage. You should be able to work with your insurance agent to come up with a coverage that covers the essentials.
The cost of premiums will depend on a range of factors, including the type of your business. It costs an average of $7,500 a year, per truck, whether your firm is an automotive repair or auto body shop that uses a tow truck to support its primary repair business. Because of the added dangers these firms face, the average charge for a tow truck goes up to $10,000.
Based on national data, these premium costs may not accurately reflect what you can anticipate to spend for the same level of protection. As a result of these and other considerations, your expenses will fluctuate.
What Affects the Cost of Tow Truck Insurance Tow truck insurance premiums are established using a variety of rating variables, just like any other sort of insurance. Your rates will be affected by the following factors:
Business Address and Service Area
Business insurance premiums may be higher if your company is located in an area that is more crowded than the national average due to the likelihood of more accidents occurring there.
Hours of Operation in Case of Emergency
Your prices will be greater if your tow trucks provide emergency roadside assistance 24 hours a day, seven days a week.
Types of Tow Trucks and Towing Equipment
Heavy-duty tow trucks are more expensive to insure than light-duty vehicles. A rollback carrier vs. an underlift wrecker truck has a different price tag. Insurance premiums for larger, more costly vehicles will be higher. a breakdown of the number of people that drive and how safe they are
Your insurance rate will also be affected by the safety records of your drivers. Hiring only seasoned professionals with a proven track record of safe driving will help you save money on your insurance premiums. Insuring a vehicle with several drivers could increase your premiums.
Number of Older Trucks in Your Fleet and Their Age
Your insurance premiums will be affected by the number and age of trucks you own and operate. Older tow vehicles are usually less expensive to buy and insure.
How long you’ve been in business
Insurance costs may be higher for new towing companies because of their inexperience and lack of track record. Your insurance premiums may be reduced if you can show that you can run a safe and responsible towing business.
Implementation of Your Company’s Safety Program
Different safety practices may be mandated by state and federal legislation for your firm. By adhering to safety initiatives, you can lower your insurance premiums.
Additional Reports
You may need additional insurance beyond the basic tow truck policy. Additional policies’ premium prices are depending on a wide range of variables and can only be approximated by an experienced insurance agent. Many towing firms need the following additional forms of insurance coverage:
Workers’ Compensation Insurance
Workers compensation insurance is a legal requirement for every business with employees, and it covers any employees who are injured on the job. When it comes to occupational deaths and injuries, tow truck drivers are twice as likely as the national average. Because of severe weather and hazardous driving conditions, they are deemed to be at a high risk of being hit by other cars on the road, harming themselves while rescuing a damaged or destroyed vehicle, or getting into an accident while on the job. Your tow truck drivers run the danger of being confronted by furious vehicle owners if they perform repossession services.
Insurance for Garage Keepers
As long as the cars are being stored in a covered facility (e.g., a warehouse), this coverage will safeguard them against crashes, vandalism, theft or fire.
Affidavit of Loss
If your customer’s car is damaged while it is being towed, this coverage will help cover the repair expenses. Theft, explosion, collision, vandalism, and fire damage are all covered under this policy.
