Business Insurance

What affects the cost of my tow truck insurance premium?

No two businesses are identical. This really is especially true when you are looking at tow trucks. Your company, whether it's a tow-truck company or an auto shop, has its own fingerprint, and this fingerprint plays a sizable part in deciding what kind of insurance you'll need. And when you discover the best coverage for you, there are lots of different factors that go into determining the cost of your insurance premium.

To take a few of the mystery from your insurance rates, listed here are some details about your business which will impact your premium:

What kind of business you're.

Coverage will vary according to what your business does. Some questions to think about are:

@ Do you currently have a contract with a county, state, or insurance company?
@ What sort of trucks do you use?
@ Do you haul salvage materials?
@ Do you haul new and used cars, or only disabled vehicles?
@ Do you do repossessions?

The answers to these questions can help you and your agent establish just what sort of business you have and what sort of coverage is appropriate for you. It is important that you simply and your agent both know precisely what you want your operation to achieve.


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Where you're based.

The location in which you work makes a difference. The size of the radius in which you operate could also play to your rates.

If your organization does repossessions.

Finding insurance for tow trucks could be tricky. Lots of carriers have decided to back away from covering tow trucks because of the high risk associated with the industry. What can make finding coverage even harder is if your tow truck company does repossession work. Many insurance carriers view the risk that goes along with repo work to become excessive.

What kind of trucks you have.

The type of trucks at the command is another thing that impacts your coverage. For instance, insuring a wrecker differs than insuring a flatbed. The larger the truck, the larger the premium-the logic is sensible on this one. Aside from that, the age and model of your vehicles are also vital that you your insurance agent.

What you're hauling.

Your insurance carrier will also look at what you're hauling. Are you transporting new or used cars? Disabled cars? Salvage materials? Your carrier will most likely recommend on-hook coverage, which protects you if something were to happen to a client's car while it's being towed by your truck. The minimum required on-hook coverage is usually $50,000 – $100,000.

Your drivers.

Your insurance company is taking a look at potential risks. The longer your drivers have been doing the things they're doing, the lower the risk. Your insurance carrier will also want to know about the safety records of your drivers. Are their Motor Vehicle Records (MVR) clean? Safety is a huge concern, and for good reason. Distracted driving, speeding, and unsafe driving habits are all major risks, so it's important to create safety a priority by taking measures to implement good driving habits. Some things that companies can perform to increase safety are to have monthly meetings, conduct weekly check-ins with drivers, and install GPS devices that detect speed in the trucks.

How long your company has been around.

This is along the same lines as evaluating your drivers. The longer your organization has been in business, the greater history is readily available for your insurance company to review. Many carriers are hesitant to write companies that have been around at a lower price than two years. However, newer companies can benefit from having clean loss histories. We'll talk more about loss histories inside a bit.

If clients’ cars are kept on your premises.

Sometimes you may be required to keep a customer's car at the shop. However, this creates one more risk. To make sure that you're covered if anything were to happen to your client's car while it's in your care, your carrier might recommend garagekeepers coverage. Garagekeepers coverage protects you if something were to happen to a client's car while it's on your property.

For example, it would cover you if a person were to break into your shop and damage or otherwise vandalize a client's car. Since your customer most likely wouldn't be very happy if your mischief-maker spray-painted their car while it's in your shop, it's best to be certain you're protected.


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We will explain your tow truck insurance options, offer our advice, and get you on your method to the protection you need.

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Loss histories.

A loss-run history shows a list or record of all claims made on your commercial policy. Your loss history can impact your rates and the carriers prepared to write insurance for your company.

Yes, there is a lot that goes into making sure that your tow truck business has the right coverage. There are lots of factors that influence your rates. Our InsuranceHub agents are experienced when it comes to covering tow-trucks, and we respect the effort it's taken to get your business to where it's. Talk to one of our experts today to get a quote and to discuss your business-we'd be happy to answer any questions you may have about your insurance.

*We would like to extend special because of Logan Hooks, Account Executive for Commercial Lines (and one in our experts on tow-truck insurance), for his contributions to this article.

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We will explain your tow truck insurance options, offer our advice, and get you on your way to the protection you need.

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