Tow Truck Insurance and Risks That Would Affect the Cost
Owners of tow truck or a towing business may notice of an increasing cost of their tow truck insurance rates. A significant amount of risk comes alogn in a wrecker and tow truck business, thus the insurance rates in this particular field can be very high. So, with this scenario, owners are now becoming concerned about the insurance costs of their tow trucks.
Considering that there are different risks involved in every business, so does too in a tow truck business that will be paying a different cost of insurance amount. Basically, a number of important details will be determined by the insurance company in order to come to a figure of your insurance fees for your towing operation.
To get some ideas, here are some information about rates that are gathered for the insurance rates of different towing businesses.
A coverage of $1,000 per year for every truck is what you will pay if you are operating in the rural areas. Those whose business is in the metro area, the rate is $6,000 per truck per year with recommended limits of coverage. Those whose business is with tickets and accidents, the payment is at $20,000 per truck every year. For those towing businesses with more than 25% repossessions, they will have to pay $10,000 per year for every truck. Incidental towing like an auto repair shop, each truck will be paid at $4,000 per year. Depending on your business then will the rates become lower or higher.
Be aware that the tow truck insurance costs are affected with some factors.
The age and experience of your drivers are determining factors for your insurance rates. Further, the motor vehicle records or the MVRs will also have an effect on the rate of your tow truck insurance. This is because an MVR is like a report of the tickets and accidents that your drivers have encountered, so your drivers have good MVRs, then you will save on insurance cost because it shows they can be safe on the road.
Another factor that will impact on your tow truck insurance cost is whether you have a rollback or a wrecker. The year, make and model of your trucks will be taken by the insurance, and so the more expensive your trucks, the more they will be costly to insure.
Another factor that will impact your tow truck insurance costs is what you tow. Note that if you are carrying a more expensive cargo, whether new cars, old cars, mix of old and new and so on, you will have more costly insurance rates since the loss will be more if you are carrying this kind of cargo.