Know the Factors that Would Cost the Insurance of Your Tow Truck
It is being noticed by owners of tow trucks or those owning a towing business, that their tow truck insurance rates are getting to be expensive. 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. So, with this scenario, owners are now becoming concerned about the insurance costs of their tow trucks.
It is a fact that every business differs from another and that each faces various risks, and in the case of tow truck business, they will also pay a different price for their insurance. To be able to come up on the charges to make for our insurance rate, there are a number of important details about your towing business that the insurance company will look into.
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. Those whose business is in the metro area, the rate is $6,000 per truck per year with recommended limits of coverage. 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. 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. Depending on your business then will the rates become lower or higher.
It is good to know of the different factors that would determine the cost of your tow truck insurance.
The first factor is about your drivers, like the age and experience that would affect the insurance rate. Further, the motor vehicle records or the MVRs will also have an effect on the rate of your tow truck insurance. This is because an MVR is like a report of the tickets and accidents that your drivers have encountered, so your drivers have good MVRs, then you will save on insurance cost because it shows they can be safe on the road.
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.