Insurance for a Tow Truck – Most people have insurance to protect their aids, such as homes and autos. But not all insurance pays attention to specific risks. Car insurance may have to pay awareness to basic risks only but does not include more advanced coverage such as tow truck insurance. So, ideally, how much is insurance for a tow truck?
Why Do We Need Tow Truck Insurance?
For those who have plans to build a car business, or who use automobiles as their primary mobility, car insurance is important. But not only do you have a guarantee for car insurance, but you also have to think about other risks such as a tow truck.
Not many auto insurance companies provide service or have coverage for towing damaged or broken down cars. Furthermore, the cost of withdrawing a car may be quite expensive. As a result, many vehicle business owners choose to buy tow truck insurance.
The need to pay for a tow truck is different from the cost of damage to a normal car or truck. In case, you open a tow truck business, you can’t use car insurance or regular auto insurance. That’s because most auto insurance doesn’t have coverage for tow truck costs.
How Much is Insurance For a Tow Truck: Premium Cost
The costs required for crane trucks are certainly different from the costs incurred for freight trucks in general. At least, the average expenditure tends to be more expensive. That is why most tow truck business owners are required to have insurance for their truck units.
On average, the cost per month for a single truck crane is about $450, and $4,500 annually. According to state laws, the policy for owning a small tow truck business covers up to $97 to $159 per month. The amount applies to the basic tow truck and road recovery standard policy only.
Every insurance agent will help you choose the best insurance policy according to your business needs. Because this will affect the number of premium payments each year. In addition, many specific things can affect the value of the premium you pay.
For example, if you have a repair shop business that in operation also provides car towing services, then your tow truck must have its insurance. At least, you have to pay $ 7,500 annually.
However, if your truck has a repossession service, then you need to pay even more. variations in premium costs for your tow truck insurance depending on the size of the risk involved.
How Much is Insurance For a Tow Truck: Reasons to Affect the Price
How much is insurance for a tow truck depending on the specific values you have? This is based on your business needs and interests. The more specific things your business has, the higher the premium price.
1. Business Location
Establishing a business in a densely populated area, such as an urban area, tends to be more congested and has a higher accident rate. Moreover, this will affect the premium value of each available vehicle business. Most countries have established similar policies.
Remember that businesses located in urban areas, especially dense ones, will pay more than those in less dense suburban areas. In contrast, business with less population will get a lower quotes of auto insurance.
2. Type of Tow Truck
The type of tow truck impacts the cost of insurance, for example, heavy-duty and light-duty tow trucks have different premiums. In addition, crane trucks with the type of rollback carrier or under-lift wrecker also tend to be more expensive. Different needs and types of tow trucks will affect the premium price.
3. How Long You Have Been in Business
How much insurance for a tow truck is influenced by your business history. If you are just starting a tow truck business, you may have to pay a little more. This means you don’t have a business record yet, so you need to start paying insurance premiums on time and run your business well.
But if your business has been around long enough, you’ve proven that you are an experienced tow truck entrepreneur, and don’t have a negative record. You may be able to get a monthly premium fee waiver.
4. Emergency Hours
Another thing that can affect the premium cost for a tow truck is the hours of service. If you provide a 24-hour tow truck service on the roadside, then the premium price is much higher than those that provide special working hours only.
In addition, not all tow truck services provide emergency hours for 24 hours, so some services also have higher prices. Consider this factor thoroughly before purchasing the insurance. Therefore, you will not regret anything and keep your tow truck service in the best condition.
5. Total Units of Tow Trucks
You also need to pay attention to the age and condition of the crane vehicle that you use to manage your business. The newer and more modern the vehicle or tow truck is, the higher the premium price will be. Conversely, if you have an older tow truck, the premium price tends to be cheaper.
The number of tow trucks in your fleet also affects the value of the premium that you have to pay later. The more units of tow trucks there are, the higher the premium price will be.
6. Driving Safety Records
Each driver specifically for your tow truck, must have a good safety record. Drivers who comply with safety standards, and have complete driving licenses, will help lower premium prices. This means that you are serious about building a business operating a tow truck.
Discover Your Premium Business Cost with Tow Truck Insurance
Premium fees for each region can also vary greatly, meaning that it is also influenced by policies or laws governing each region. For example, some regions have policies that require you to meet certain requirements or protocols.In developing a tow truck business, you will probably follow the recommended protocol. This will probably make premium costs tend to be higher, or even lower. So you can adjust your business needs with certain policies to see how much insurance is for a tow truck.