Factors that Would Affect the Insurance Cost of Your Tow Truck
Owners of tow truck or a towing business may notice of an increasing cost of their tow truck insurance rates. Together with the tow truck and wrecker businesses are significant amount of risks, thus rates of insurance for them are expensive. This trending observation are making owners in the tow truck industry to be a bit concerned.
Every tow truck business will be paying different amount of their insurance considering that each business is different and has different risks to face. 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.
For the information, some estimates are gathered for the insurance charges of the different kinds of towing businesses.
The payment for those operating in the rural areas, an average of $1,000 per truck per year will be charged with minimum limits. The recommended limits of coverage for those operating in metro area is at $6,000 per truck per year. If your business is with tickets and accidents, you will be paying per truck at $20,000 per year. The towing business with more than 25% repossessions, the payment is $10,000 per year for one truck. Incidental towing like an auto repair shop, each truck will be paid at $4,000 per year. Therefore, depending on your business will the rates determined to be high or low.
There are other factors too that would affect the tow truck insurance cost.
The number one determining factors for your insurance rates are the age and experience of your drivers. The rate of your tow truck insurance can also be affected with the motor vehicle records or the MVRs. A good MVR of your drivers would mean they can be safe on the road, so with MVR showing less tickets and accidents, you will be most likely paying lesser insurance rates.
The next factor that will be considered when computing for your insurance rate is whether you own a wrecker or a rollback. The insurance company will also get the year, make and model of your trucks, and consequently if you have an expensive truck, the more costly will be your insurance rate.
Another consideration when computing for your tow truck insurance rate is what you tow. Your business may be towing new cars, old cars, or a mix of new and old, and these will be factors in determining your insurance rates, since if your cargo is expensive, the loss if ever will also be more costly, thus you will be charged of higher insurance rates.