Know the Factors that Would Cost the Insurance of Your Tow Truck
The tow truck insurance rates are on the rise nowadays, and this is observed by owners of tow truck or those owning a towing business. There is a good amount of risks involved in a tow or wrecker truck business and this is the reason why the insurance rates are getting to be costly. 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. Generally, an insurance company, to be able to determine how much fees they will charge for your insurance, will look at several critical details about 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. 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. If there is a part of the business like an auto repair shop for incidental towing, they will be charged at $4,000 per truck every 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. Also the MVRs or motor vehicle records will have an effect on how your tow truck insurance will be computed. Through an MVR, the driver’s records are shown like the tickets and accidents experienced, and if your drivers have good MVRs, it would mean they can be safe on the road, and there is a bigger possibility that you will save some money on your insurance.
The next factor that will be considered when computing for your insurance rate is whether you own a wrecker or a rollback. 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. 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.