The Critical Factors That Affect the Cost of Your Tow Truck Insurance
When you own a tow truck or a towing business, you need to have insurance coverage for your car. Insurance rates are high for these businesses because they face a significant amount of risk. Since every business is different and faces specific risks; various tow truck businesses pay a different price for their insurance. It is necessary for anyone who runs this kind of business to understand what factors impact the cost of tow truck insurance. You will find that information when you read this article.
Your drivers are among the factors that impact how much you end up paying for your tow truck insurance. The factors that matter about them and their experience and age. Their Motor Vehicle Records also matter, and they show your driver records including such details as tickets and accidents. You can save your expenses on insurance when you get drivers with good MVRs and who are also well experienced.
You can also affect your cost of insurance by your loss-runs. These are records of the claims that your business has faced, and they are indicators of risk. The more claims you have, the more it is deemed that your business is riskier, and you will have more expensive insurance.
Another thing that will affect the much you are needed to pay for insurance will be the risks to which you are exposed. The risk exposures that you face will be as a result of your line of work. Thus, the expenses will differ among different companies with tow trucks such as those which carry strict towing, repo, auto repair shops with wreckers, and roadside assistance businesses. What you haul in your business also matters, and you may be charged more for dealing with more expensive loads.
Another thing that will affect how much you pay for insurance is the size of your fleet. The more trucks you have, the more expensive your insurance will be since every single of your trucks need to be appropriately insured.
You can also expect the value of your tow trucks to affect the much you need to pay for insurance. You will have more expensive insurance when your tow trucks are more expensive. This is because your loss is likely to be costlier when the value of your truck is higher.
The period within which your towing business has operated is something else that will affect the expenses you will incur on insurance. A mature business that has been operating for a long time will have a lot of data and information that the insurance company can review. If you have few loss records, you are likely to get better insurance rates compared to a newer company.