Understanding the Factors Which Affect the Cost of Your Tow Truck Insurance
When you own a tow truck or a towing company, you need to get insurance coverage for it. The businesses face a lot of risks, which may be the reason why insurance rates for them can be high. 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. This article is written to help you understand this.
One significant factor that will affect your tow truck insurance cost is your drivers. 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. Many claims will indicate that your business is risky, and this will result in more expensive insurance.
The risks to which you are exposed will also affect how much you need to pay for your insurance. 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.
The size of your fleet will also determine your insurance expenses. The different tow trucks that you have need to be adequately insured, and you will be required to pay more when you have more vehicles.
Another thing that will determine your insurance expenses is the value of your tow trucks. The more expensive your vehicles are, the more expensive will your insurance be. 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. There will be a lot of data from an established company for the insurance company to review. You can get more affordable insurance compared to a newer company when you have few loss records.