Tips to save money on your tow truck insurance coverage.
Every business wants to save money on your commercial vehicle insurance, but cutting back on insurance coverage is not the answer. That is really true for your commercial auto or truck insurance. If one of your owned or rented tow trucks is in an accident and at fault, not having the right coverage could possibly cost you twice: not only will you have to pay to get the truck repaired, you’ll also lose out on jobs while it’s in the shop.
Instead of lowering coverage, think about possible ways to save:
Consider changing your deductibles. If you would rather save a little money today but pay more out-of-pocket in the event your vehicles are damaged or stolen, a higher deductible may be right for you.
Keep in mind that you and your drivers history influences rates. Every once in a while obtain Motor Vehicle Reports (MVRs) on potential hires, just make sure to notify them first to comply with state privacy laws. Also, tow businesses that require larger vehicles and whose drivers hold Commercial Drivers’ Licenses (CDLs) may qualify for pricing discounts.
Think about how you’re going to pay. Some insurers have significant finance charges associated with their bill plans, or don’t have flexibility in payment schedules. Look for companies that offer flexible pay plans, including low initial payments and no finance charges.
Shop around for insurance. One of the easiest ways to save money is to make sure you have a vehicle insurance plan that fits your company needs. While commercial auto, trucking or busing insurance can seem complicated, understanding the carriers, coverages and services available to you is the key to making an informed decision for your business. Coverages like On Hook Legal Liability and Garage-keepers Legal Liability are designed specifically for tow business operators:
On-Hook Legal Liability covers towed property, and was recently expanded to cover more than just the vehicle you have in tow. Cargo like equipment or raw materials and select personal items in towed vehicles are now covered if they’re damaged at any time between pick up and delivery. Plus, coverage for transmission and transaxle damage is now included. Limits for this truck insurance coverage are now available up to $100,000.
Garagekeepers Legal Liability covers vehicles being serviced, repaired or stored at up to three business locations. This coverage is also now available in limits up to $100,000.
Also, check with your National Insurers carrier to see what discounts they offer. Some carriers offer discounts to companies who pay in full, have been in business for more than three years, and more.
Regularly reviewing and comparing insurance costs can both save you money and keep your business moving forward. We’ll be glad to help. We can quote competitive tow rates and important tow coverages on the spot.