Tow Truck Insurance Market Will Remain Tight

Tow truck drivers operate in one of the most dangerous environments in the civilian world. They face accidents every day, often in some of the worst weather conditions. International Towing and Recovery Museum in Chattanooga, Tennessee claims that 50-100 tow truck drivers die on the job every year in the US. In April 2018, a tow truck driver in Virginia was almost killed when the vehicle he was towing was hit by a car that spun out at the same spot. He lost his leg and was bleeding out. If not for a good Samaritan that stopped and rendered first aid, the driver would have died in minutes.

This high level of risk makes things difficult for the commercial auto insurance companies, who are there to make money, not to pay out claims. AM Best reported that commercial auto policies had shown a net underwriting loss for the SIXTH year in a row, and the deficit has widened. Many insurers, instead of raising prices, are pulling out of the market entirely. Progressive pulled out of the towing sector in 2016 to new clients, and will only renew old policies. This was followed by an exodus of multiple insurers during 2017.

Insiders call 2018 the worst market in tow truck insurance EVER, with even more carriers leaving the market, and there is no relief in sight. It is not just tow trucks being affected, but also other risk classes that include charter buses, trucks for hire, and non-emergency medical transports with additional risk exposure that are feeling the insurance pinch.

Even on no claim accounts, expect to see rates double… or worse, non-renewed.

J.E.B. Insurance Services will always do our best to find you the most affordable rates. Contact us if you operate in the states of Florida, Georgia, Texas, North Carolina, South Carolina, Tennessee, Illinois, Iowa or Nebraska.

David Ott

David Ott