Tow truck drivers who perform for-hire towing, auto transport, salvage, repo’s, recovery or relocation are required to carry insurance coverage by their Secretary of State. Insurance rates among tow trucks have been skyrocketing in the recent years due to substantial losses in the industry leaving many curious tow truck owners wondering how to get cheap tow truck insurance.
How to Get Cheap Tow Truck Insurance
When the expenses of operating a tow truck business become immense, tow truck owners begin their search for cheap tow truck insurance.
Here are some ways to find cheap tow truck insurance without sacrificing coverage:
- Value your truck. What an insurance company will charge you for comprehensive and collision coverage all depends on the year, make, model and over-all value of the tow truck you operate. If you’re looking for cheap tow truck insurance, look for a tow truck that is inexpensive.
- Liability limits. Most states have minimum limit insurance requirements for tow truck operators. Speak to your Secretary of State and get a clear picture of the minimum insurance requirements for tow truck drivers in your state.
- Opt for a high deductible. In the majority of cases, this is the most effective way to lower your insurance premium. Choose a higher deductible. By taking a $2,500 deductible compared to the traditional $1,000 deductible, you’ll pay less.
- Clean up your MVR. Your Motor Vehicle Record is a report of your personal driving history. Info on this report may include point history, traffic violations and convictions, and license status on your driving record. Insurance companies hate points on your MVR and will be sure to surcharge your policy. Take certain precautions to keep your MVR clean. If points exist, speak to a reputable traffic attorney to help clean up your MVR.
- Ask about discounts. Tow truck insurance companies offer a variety of discounts. Some of those include:
- Prior insurance discount
- Multi-vehicle discount
- Multi-policy discount
- Anti-theft discount
- Choose coverage wisely. If you’re tow truck is older and you own it outright, consider liability coverage only. If your tow truck is extremely old, your insurance may be more expensive than the truck is actually worth!
- Find an independent agent. A local, independent insurance agent will have access to multiple insurance carriers that offer tow truck insurance programs for one tow truck, or even a fleet. Taking a few minutes to speak to an agent will yield cheap insurance quotes from multiple carriers.