Know the Factors that Would Cost the Insurance 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.
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.
Here are some estimates that are gathered for the various kinds of towing businesses for their insurance rates.
Those operating in the rural business will be paying per truck an average of $1,000 per year with minimum limits. Those whose business is in the metro area, the rate is $6,000 per truck per year with recommended limits of coverage. On the other hand, a business with tickets and accidents would be paying $20,000 per year for every truck. For those towing businesses with more than 25% repossessions, they will have to pay $10,000 per year for every truck. Incidental towing with an extension of another business like an auto repair shop, the amount to be paid is $4,000 per truck per year. Thus, the rates can be lower or higher, depending on your operation.
It is good to know of the different factors that would determine the cost of your tow truck insurance.
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.
Your insurance rates will have another factor of consideration when determining the rate, and this is whether your operation is running wreckers or rollbacks. 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.
What you tow will be another consideration in the computation of your tow truck insurance rates. New cars, used cars, mix of both new and old cars are you may tow, and these will be considered since the more expensive you tow, the loss will be more, thus you will have a higher insurance rate.