The cost of tow truck insurance can be wrapped up in the price of your business insurance. Generally, a tow truck policy includes automobile coverages like auto liability and garage keepers coverage.
So, how much does commercial tow truck insurance cost? Well, it can range from $4,000 to $15,000 depending on how many tow trucks you own and what kind of business you have.
The cost of operating a towing business varies greatly. The average amount spent on insurance for one tow truck and storage lot is $8,000, but this can vary depending on the number of trucks you have or storage units available.
How is Tow Truck Insurance Cost Calculated?
Insurance companies consider many different factors when determining your risk, and also your premium price. These factors include:
- The types of vehicles you own. Heavy-duty trucks are typically more expensive to insure than medium and light.
- Your location. If you are residing in an urban area or one with a higher accident rate, then your insurance premiums may increase depending on the insurer.
- Your hours of operation. Trucks that drive the nighttime route are more likely to cost more to insure given the dangers that come with the night.
- The types of things you tow. The more expensive the vehicle, the more expensive it is to insure.
- The types of safety programs you employ. Any business that falls under the jurisdiction of state or federal law must take part in safety programs.
We hope this blog post was helpful for you in understanding the insurance cost of commercial tow truck insurance. If you have any questions, contact Assured Standard today!