Tow truck and transportation insurance rates are a major concern for drivers and business owners. The goal is to get good coverage at a good rate. But to do that, you have to understand what affects your towing or truck insurance rates. One thing that is a big part of the rates you’ll be able to get is your business’s loss run. So it’s something to pay attention to.
What are loss runs?
What is your business’s loss run? It is a report of any claims your business has had while you’ve been in business or insured. Insurance companies are very interested in your company’s loss history.
Why is my truck business’s loss run important?
Why does this matter? It’s important to the insurance quotes available to you. Underwriters look at your business’s loss history to see if your business is a good fit for their company. They want to see how much of a risk it would be to insure you. Your loss run affects the premium you could end up paying for your insurance.
(Another thing to know is that certain losses “stick” to your loss record for a certain amount of time, meaning that losses from the past few years could still be on there.)
Basically, all this means is that keeping a clean loss history can help you get lower rates. If you’ve been in business for a few years and you’ve got a good loss history, you could see yourself in a better insurance situation. There might be more markets available to you.
Tips for keeping losses down.
Accidents happen, and sometimes things are out of your control. However, it’s important to be proactive instead of reactive. Putting an emphasis on safety can help you lower your chance of having an accident. (In the long run, that can help you lower your transportation insurance rates.)
There are a few things you can do:
1. Have a thorough hiring process.
You need to hire drivers who are committed to safety. Having drivers with experience could lower your chance of having a claim. The insurance company looks at the MVRs of your drivers. If the MVRs are good, you could get lower rates. Tickets and accidents don’t look good to an insurance company.
2. Doing vehicle inspections.
It’s important to do vehicle inspections and to keep up with truck maintenance. You want your trucks to be safe. Maintenance and inspections can also lower your chances of having an accident.
3. Event recorders.
You could also consider event recorders so that you have video just in case something does happen.
4. Safety training.
It’s important to do safety training with your drivers. Take the time to have safety meetings. You could think about having one person to be in charge of the safety program.
5. Think about what happens if there is an accident.
You also need to know what would happen if one of your drivers gets into an accident or gets a ticket. What are you going to do if there’s a loss? What’s your procedure? Will there be disciplinary measures or extra training? You have to have a plan for this.
These are just a few things that you can do to improve safety at your business, and this can help you keep a clean loss run. With a little time, that clean loss run can help you get lower insurance rates.
Loss runs are important when it comes to your tow truck insurance or truck insurance. Your business’s loss run can have a big effect on your rates. Don’t underestimate the importance of safety.
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