If you’ve got a tow truck business, you’re probably eager to see that business grow over time. And to do that, you want to get more trucks and more drivers. You really want your business to thrive, but there are a few things to consider as you work to grow your towing business. Here are six tips to think about as you’re expanding your business.
Remember these 6 things as you grow your towing business.
1. Grow gradually.
Yes, it might seem like a good plan to get a bunch of tow trucks all at once and try to grow your business at light speed. But that might not end up being the best way to go. If you get too many trucks too quickly, you risk growing too fast. (Think about insuring those new tow trucks…) You might want to consider planning to grow a bit more gradually so you don’t get too far ahead of yourself. (For example, maybe adding one truck a year would be realistic.) You want to make sure your business is growing in a viable way.
2. Make sure you’re hiring experienced drivers.
You also need to make sure you’re hiring experienced, trustworthy drivers for your tow trucks as you expand your business. You can use a pre-screening service. Does the candidate you’re considering seem okay with you seeing their latest MVR? It’s really important that you have drivers who are committed to safety working for your towing business. These are the people you’re trusting with your trucks, after all.
3. Strive to be claims-free.
It’s important to do your best to avoid insurance claims as you go along because this can help you get lower tow truck insurance rates. (And who doesn’t want to get lower insurance rates?) If you have a clean loss record, carriers might see you as being less of a risk to insure. That’s why it’s essential that you’re dedicated to safety at your business. You also have to manage your risks so that you can reduce the chance of a misadventure.
4. Don’t set your sights on a big tow contract right away.
Getting a big tow contract sounds great. Lots of towing businesses want to score a big contract or work with a popular motor club. But if you want a big contract with a motor club, you’re probably going to need lots and lots of insurance. That’s what these contracts can require – they generally want to see really high limits of insurance.
We don’t want to burst your bubble, but the sticky part is that lots of insurance can get expensive. It might be more than you’re prepared to pay when you’re just starting out. Rather than setting your sights on a huge contract right from the get-go, you might instead take some time to get your business started. Once you’ve got some experience and your business is nice and established, you can start considering some of those contracts.
5. Make sure to pay your insurance bill on time.
It might seem like a common-sense piece of advice, but make sure that you pay your tow truck insurance bill on time. It’s really important. Late payments can be trouble.
If you make a habit of having late payments, you could see a much higher insurance rate at renewal time. Paying your insurance bill on time can help you keep your rates down. So, spare yourself some grief in the future by making a point to pay your bill on time. It doesn’t really endear you to your insurance company if you don’t pay them when you’re supposed to.
So, it’s a simple thing, but it can really help you out as you’re trying to grow your towing business.
6. Keep a clean loss history and stay in business.
The goal is to stay in business – and to keep a clean loss history as you go. By being in business for a while with a good loss history, you open up more options for your insurance. You may be able to find better tow truck insurance rates. Getting tow truck insurance for a new venture can be tough because there aren’t a lot of markets for it. But when you’ve established your business, you’ll probably find that you’ve got more choices for getting tow truck insurance.
Speaking of tow truck insurance, we can help you get quotes. You can get started with tow truck insurance quotes by filling out our online quote form, giving us a call, or messaging us on LiveChat. Our team of tow truck insurance professionals would be happy to help you get the coverage you need.