Tow Truck Insurance and Risks That Would Affect the Cost
Owners of tow truck or a towing business may notice of an increasing cost of their tow truck insurance rates. Together with the tow truck and wrecker businesses are significant amount of risks, thus rates of insurance for them are expensive. So, with this scenario, owners are now becoming concerned about the insurance costs of their tow trucks.
Every tow truck business will be paying different amount of their insurance considering that each business is different and has different risks to face. Generally, an insurance company, to be able to determine how much fees they will charge for your insurance, will look at several critical details about your towing operation.More on https://truckinsurancequotes.com/tow-truck-insurance-cost/
Here are some estimates that are gathered for the various kinds of towing businesses for their insurance rates.
Those operating in the rural business will be paying per truck an average of $1,000 per year 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. If your business is with tickets and accidents, you will be paying per truck at $20,000 per year. The payment for every truck for a business with more than 25% repossessions is $10,000 per year. If there is a part of the business like an auto repair shop for incidental towing, they will be charged at $4,000 per truck every year. Depending on your business then will the rates become lower or higher.Discover more
Be aware that the tow truck insurance costs are affected with some factors.
The first factor is about your drivers, like the age and experience that would affect the insurance rate. The rate of your tow truck insurance can also be affected with the motor vehicle records or the MVRs. Through an MVR, the driver’s records are shown like the tickets and accidents experienced, and if your drivers have good MVRs, it would mean they can be safe on the road, and there is a bigger possibility that you will save some money on your insurance.
Another factor that will impact on your tow truck insurance cost is whether you have a rollback or a wrecker. 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 consideration when computing for your tow truck insurance rate is what you tow. Note that if you are carrying a more expensive cargo, whether new cars, old cars, mix of old and new and so on, you will have more costly insurance rates since the loss will be more if you are carrying this kind of cargo.For more Visit