Tow truck insurance cost depends on a large number of factors. In comparison to auto insurance, tow truck insurance is costlier. No wonder that it belongs to one of the highest expenses. Due to the apparent importance of insuring the tow trucks for safety and protection towards the trucks and business, we need to have it.
Even though the cost cannot be said in specific number, we can say it in average. The article below will be more about the average cost of tow truck insurance and what variables affect it.
Average Cost of Tow Truck Insurance
How much do tow truck business owners have to pay? Based on financial reports on insurance, it costs you around $400 in the lowest level and $1,200 in the highest one per month. Each of you gets different cost.
That’s normal since it based on factors that we will read later. Besides, each insurance company offers different types of coverage in different amount as well. That contributes the various tow truck insurance cost from one to another.
The cost above is the insurance premium that is obtained from coverage that someone carries. Primarily, you will carry general liability, underinsured/uninsured motorist, property damage coverage, garage liability and some other coverage.
Each of them has its own particular amount. You will be provided in lowest and highest limit. Here, you have to be wise when adding coverage and determining its amount. Make it affordable by considering the business need. That can be the most difficult part of all.
Variables that Affect Insurance Cost
At least, you already have a prediction that you will pay when you have to purchase tow truck insurance. Your insurance cost is the result of calculation based on several variables. It is important to know them to make your cost affordable.
First, with a number of coverage insurance companies offer to you, the applying rule is various types of coverage added into your policy affects your tow truck insurance cost. Among them, primary liability contributes the highest amount.
Secondly, your tow truck type affects the cost as well. Look at your garage and do you have single axle, medium or heavy-duty, rollback carriers, car carriers or under-lift wreckers.
What you park in your garage and in addition to the size of your tow truck remarkably affects the tow truck insurance cost. It implies that bigger tow trucks require higher amount of coverage.
What kind of vehicles that your trucks typically tow? If the trucks just tow vehicles, your insurance cost will be a lot lower than tow trucks towing heavy equipments, boats, trailers and motorcycles.
Insurance companies take that into their consideration, but they also will look at the drivers of your tow trucks as well as their previous performance in driving.
It sounds trivial but in reality, if you only employ excellent drivers with good driving background, you may stand a chance of getting modest discounts in your insurance plan. It reduces your tow truck insurance cost. Typically, your state government requires you to file your driver qualification files.
How long do you operate your business in a day? If your towing business lasts for throughout the day or even all day long, you may not wonder that you have to pay more expensive for your insurance cost.
In short, the variables that influence the price are around risks and types of coverage you include. Risks can be anything but accident is number one. That is why to get low charges; you need drivers with good driving records. Discount is great way to save money. Ask its availability for your tow truck business.
Now, go shopping around. Get some insurance costs as comparison. It also helps you to get the best price. Indirectly, you can manage your tow truck insurance cost in the lowest level.