You’re probably not the biggest fan of tow truck insurance. We get that – tow truck insurance can get complicated with all of the coverages out there. And, well, towing insurance isn’t exactly cheap. However, it’s a necessary thing. You can’t avoid your insurance renewal every year. Now, you might be dreading your renewal because your rates could go up. Or maybe you’re wondering what the big deal about your renewal is. Anyways, we’ll explain what a renewal is and give you three strategies to keep your insurance rates from skyrocketing.
What is a tow truck insurance renewal?
A renewal is just continuing your current insurance coverage with your carrier. Your renewal date is basically when your current insurance expires. When the policy expires, you either need to continue your coverage with your carrier or get new insurance from a different carrier. It’s important to be aware of your renewal date so that you can give yourself plenty of time to shop for new tow truck insurance or make the decision to stick with your current carrier.
Your renewal date depends on when your current policy became effective. Since most policies are written for one year at a time, you will probably have a renewal every year. Normally, your carrier will reach out to you a month or two before your renewal date.
A renewal is just an insurance policy written to replace one that’s about to expire. Your rates might change at your renewal, or they might not.
Tow truck insurance rates have been increasing.
There’s been a trend in the commercial auto insurance world. Rates across the board have been going up. Many towing businesses have noticed that their rates have been increasing, so if you’ve also been dumbfounded by the increase in your bill you’re not the only one. The tow truck insurance game has not been particularly kind to towing businesses lately.
It’s important to note that this trend is not random. It’s not that insurance companies are raising rates just because. There are a lot of factors that have spurred this trend. For example…
- Bodily injury liability litigation cases are getting more expensive.
- Medical expenses are going up.
- Distracted driving and other reckless driving behavior have caused the frequency of accidents to go up.
- People are driving more.
- Vehicles are getting pricier to repair and replace.
All of these things put together mean that the chances of being in an accident are greater and that the expenses associated with an accident are higher. For the insurance company, that means a higher chance of having to pay out a large claim, so the rise in premiums has been in response to this probability. Unfortunately, this all means that your renewal might be higher than you would like. But not all is lost – the following three tips can help you reduce the chances of a big increase in your rates.
How to keep your insurance renewal from skyrocketing.
1. Pay your insurance bills on time.
Late payments can often result in a substantial increase in tow truck insurance rates. Insurance companies want to be sure that you’re going to pay them on time – and that you’re actually going to pay them. If you have late payments, you become a riskier client to them, and that risk can result in higher premiums. Nonpayment can also lead to cancellation of your policy, which isn’t good.
Anyways, to make a long story short:
Pay the insurance company on time. Use your phone to set reminders to send your payment, write it on your calendar, use Post-it notes, whatever you have to do to make sure that check gets to your insurance carrier in time. If you maintain a clean loss record and pay your bills on time, you’ll be a good risk to the insurance company – you’ve proved yourself to be responsible and able to be counted on to both prevent losses and pay your bills.
2. Avoid insurance claims with safety.
Filing a tow truck insurance claim can make your insurance rates go up. That’s because you’ve become more of a risk to insure. If your business faces accidents, you’re statistically more likely to have another accident. And that means the insurance company is probably going to raise your rates. Remember, you want to be a good risk, and that means keeping a clean loss record and preventing car accidents by committing to safety.
You can reduce your risk of accidents by committing to safety in your tow truck business. Check out the following tips for avoiding claims:
- Create written workplace safety policies for your business. Consider covering topics such as distracted driving, seatbelt use, speeding, and so on.
- Be thorough when you’re hiring new tow truck drivers and hire people who will be committed to safety.
- Have a policy banning distracted driving to reduce the chance of accidents.
- Hold monthly safety meetings/training sessions.
- Have weekly check-ins with your drivers.
- Consider using GPS systems to monitor speed and telematics.
- Have a preventive maintenance program.
- Have your drivers do pre-trip vehicle inspections.
By improving safety at your towing business, you can save money on your tow truck insurance rates and help keep your premium from skyrocketing at your renewal.
3. Encourage safe driving so your drivers don’t get traffic violations.
Tickets for traffic violations also don’t look so great on your business’s record. Traffic violations indicate that your business is a risk to insure, so your rates could increase when it’s time for your policy to be renewed. Insurance companies really aren’t crazy about risk. That’s why it’s so crucial that you do everything you can to make your business safe and to encourage your drivers to follow the rules of the road.
You might be a bit stressed out at your renewal time because your rates could increase – or maybe you’ve decided to shop around for new insurance to save money on your tow truck insurance. Whatever your plan might be for renewal time, paying your bills on time, avoiding accidents and claims, and encouraging safe driving to avoid traffic tickets can help you keep your insurance rates down. Remember – safety is your friend.
If you want to get multiple quotes for your tow truck insurance, we can help. We have a team of transportation insurance experts who can shop your rates and help you find the best tow truck insurance at the best rate. We’re pros at making insurance easy and helping people save money. To get started with your quotes, just fill out our online form or give us a call today.