Although tow truck insurance rates average around $4,000 to $5,000, policy premiums can spike up to $15,000 per annum for high-risk truckers. Insurers generally charge at-risk clients more. As such, minimize your associated risk factors to improve your overall insurability as a trucking service provider.
Proper risk management plays a crucial role in keeping tow truck insurance costs down. Hire truckers with a good driving record, maintain your credit score, avoid getting into road accidents, and keep your tow trucks safe 24/7. Also, avoid hauling high-value cargo. Specializing in towing luxury vehicles drives up your tow truck and on-hook insurance premiums significantly.
Bolster your risk management strategy with the following straightforward, actionable tips:
Avoid skimping on insurance. Keeping your premiums to a minimum reduces your monthly expenses, but operating underinsured compromises your long-term continuity plans.
Remember: road accidents cost far more than any insurance policy. In the worst case, property damage and bodily injuries could set your business back by over $150,000.
To cut costs, avoid towing high-value vehicles, keep your tow trucks secure, hire skilled drivers, maintain a strong financial standing, and use front and dash cameras in your trucks.
Keeping a good financial standing and high credit scores make your company appear stable and reputable, which can result in lower insurance premiums.
Operating underinsured can be risky as potential costs from road accidents, such as property damage and bodily injuries, can greatly exceed the cost of any insurance policy.
While managing risks can cut your tow truck insurance costs, protecting your business's reputation is equally crucial. Dive into our blog on understanding reputational risk insurance to see how you can further shield your enterprise.
Are you stuck between the different insurers in your area? Assured Standard has you covered! Use our in-depth comparison review of the top five truck insurance companies as a starting point.
Arthur Williamson graduated with a degree in Business and Management at the University of California, Berkeley. He is knowledgeable about what small and big businesses require to keep operations moving.
