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How Much Is Tow Truck Insurance In Arizona

How Much Is Tow Truck Insurance In Arizona

With nearly 100,000 road accidents and over 1,000 traffic-related deaths in 2020, how can Arizonan truckers protect themselves? The answer: tow truck insurance. Carrying sufficient coverage covers third-party claims liabilities, first-party damages, and hauled cargo complications stemming from road accidents.

Tow truck insurance in Arizona is relatively inexpensive. Seasoned truckers with excellent driving histories can minimize their premiums to under $3,000 per annum. However, high-risk truckers might have to shell out over $6,000 for the same coverages.

Factors That Affect Tow Truck Insurance Premiums in Arizona

Insurance providers vary their rates based on risk. They classify Arizonian truckers as a high-risk entity if they:

  • Have poor driving records. Only hire truckers with a good driving history. Working with drivers that carry delinquent driving records will increase your premiums exponentially.
  • Have bad credit. As with any other financial institution, insurers see tow truck business owners with a bad credit history as high risk. As such, maintain excellent finances.
  • Haul high-risk cargo. Your on-hook coverage spikes substantially if your towing business specializes in hauling luxury vehicles, sports cars, or repossessed units.

Overall, the key to minimizing your insurance premiums is risk management. Build a solid, reputable company that carries minimal risks so that companies see you as an insurable institution.

To ensure that you receive fair estimates, compare the insurance rates of at least three to four providers. Avoid companies that overcharge their clients. Similarly, stay wary of providers that offer inexplicably low rates as they might have poor financial ratings or limited coverages. 

Frequently Asked Questions:

What is the average cost of tow truck insurance in Arizona?

Tow truck insurance in Arizona typically costs between $3,000 and $6,000 per annum, depending on risk factors like driving records, credit history, and cargo type.

What factors can affect my tow truck insurance premiums in Arizona?

Factors such as your driving record, credit history, and the type of cargo you haul can significantly impact your insurance premiums in Arizona.

How can I get fair estimates for tow truck insurance in Arizona?

To get fair estimates for tow truck insurance, compare the rates of at least three to four providers, taking into account their financial ratings and coverage limits.

Are you having trouble deciding how much insurance is needed when hauling private vehicles? Assured Standard can help with your calculations. Read our piece explaining the coverage necessary when hauling vehicles with a pickup truck.

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