Towing stranded cars off busy highways with speeding cars just feet away is a risky business. Expensive property such as the towing vehicle and its equipment as well as the car being towed are at risk. This is just one of several reasons why tow truck insurance can be expensive. These risks are why some insurance companies are getting out of the towing industry altogether. However, this doesn’t mean that finding tow truck insurance with reasonable rates is impossible. Here are three suggestions:
Hire Safe and Professional Drivers
What makes one tow truck company file more insurance claims than another when both use the same types of equipment and work in the same area? The main difference is their drivers. The driving records of your towing crew greatly affect your rates. Do a background check when hiring by checking the motor vehicle report of every person under consideration.
Don’t hire drivers with multiple violations within the last three years or with a serious violation such as a DUI, excessive speeding, road rage, or reckless driving. Hiring bad drivers not only directly increases your premiums, but will cause future insurance claims that will further increase your rates.
In addition to good driving records, it’s best to hire drivers with sufficient tow truck operating experience. It will cost more, but will save money in the long run from fewer insurance claims and rate hikes.
Increase Your Deductible
A larger deductible reduces your premium because you’re sharing the risk with the insurance company. The deductible is the amount you must pay first before your insurance policy makes its payment. This increased risk on your part only makes sense when you hire the best drivers as discussed above.
Create and Write Your Company’s Safety Policy
This forces you to think through everything that may cause an insurance claim and of the many safety issues that contribute to this. Make sure to instruct your drivers of the requirements of this policy and that you enforce them. This tells your drivers and your insurance company that you take safety seriously. Insurance companies will take this under consideration when determining your rates.
Finally, find a company that provides quality tow truck insurance at affordable rates, such as J.E.B. Insurance Services. Contact us for more information. We provide insurance in the states of Florida, Georgia, Texas, North Carolina, South Carolina, Tennessee, Illinois, Iowa & Nebraska.
