You might have heard that tow truck insurance rates are on the rise. Many tow truck insurance carriers have backed away from covering tow truck businesses because they think they’re too risky. That has led to many tow truck businesses getting their insurance nonrenewed, while others have seen huge rate increases. As a result, you may be wanting to save money on your tow truck insurance rates by getting cheap tow truck insurance. We’ve got some tips to help you save some money on your rates.
How to get cheap tow truck insurance for your business.
1. Hire your tow truck drivers carefully.
You tow truck drivers have a major effect on your rates because their driving records show how big a risk they are. If they’ve gotten tickets or been in accidents, your rates will be higher. To make sure you’re hiring the best drivers for your business, run background checks, check MVRs (motor vehicle reports), and make sure the candidate is committed to safety.
2. Commit to safety policies.
Having a high standard of safety at your towing business helps you avoid claims, and that helps you keep your tow truck insurance rates down. Committing to safety can include implementing policies for your business and holding safety meetings. Training and safety meetings can help you establish the importance of pre-trip vehicle inspections, good driving, and detailed record-keeping. Creating safety policies and enforcing them can help you uphold a strong level of safety.
3. Don’t skip the pre-trip vehicle inspections.
Pre-trip inspections can help your drivers identify any problems with the vehicle that make it unsafe to drive. This helps you head off claims before they happen, so make sure your drivers are in the habit of doing a pre-trip vehicle inspection and that they keep good records.
4. Use your tow truck insurance only for big losses.
Filing too many minor claims can make your rates go up or your coverage be nonrenewed. Insurance companies will look at your loss-runs, or record of all your claims and losses, to see how much to charge you – or whether or not to cover you.
So, if you have a minor loss, think about your deductible and the cost of the repair or claim. Can you handle it on your own? If you can, you can keep that claim off your record. There are many different types of tow truck insurance, but try to reserve your coverage for emergencies.
5. Establish a strict policy against distracted driving.
Texting and driving and talking and driving are extremely dangerous, and distracted driving is a leading cause of car accidents. (Plus, the FMCSA made it illegal for CMV drivers to use phones at all while driving.) You need to establish a distracted driving policy that makes it perfectly clear that you won’t tolerate cell phone use while your drivers are behind the wheel. This will help your business avoid accidents, and in turn that will help you get cheap tow truck insurance.
6. Think about using GPS systems.
GPS systems in your tow trucks can help you keep an eye on the speed your drivers are traveling and will discourage them from speeding. Speeding is dangerous – a driver could cause an accident or get a ticket. Neither of those things is good for your insurance rates.
7. Identify your risks and take steps to minimize them.
You need to do a little bit of risk management. You can do that by considering all the risks your tow truck business faces and coming up with ways to reduce those risks. Think of anything that could cause a loss, an accident, or a lawsuit and try to lessen the chances of that happening. The idea is to head off disaster before it strikes.
8. Make sure to keep your tow trucks well-maintained.
Your drivers need to report any maintenance-related issues. If a tow truck is having problems, it may not be safe to drive. Make sure to keep all the tow trucks in your fleet in good repair – they have a tough task ahead of them, so they need to be in tip-top shape. It’s important that your drivers know how to properly report and document a maintenance issue, and they should know how to recognize a tow truck problem.
Lowering your tow truck insurance rates and getting cheap tow truck insurance means taking steps to reduce your chances of having a claim. Committing to safety throughout your entire business will help you save money on your tow truck insurance.
Another way to save money on tow truck insurance is to shop around and compare rates. Our team of professionals can help with that by getting you quotes – we’ll shop your rates for you. All you have to do to get tow truck insurance quotes is fill out our quote form or give us a call today.