Has your tow truck insurance premium bounced up for no reason? Sadly, you are being caught by the renewal trick where an insurance company covers you for a year or two and then pushes up your premiums for no reason because they assume you will not go to the trouble of changing insurers. It is time to prove them wrong. Here is how you find cheaper premiums and save money on your tow truck insurance.
Do They Have High and Low Traffic Season Plans?
Traffic can vary with the seasons. Ask your insurer if they have seasonal discounts or lower rates during certain times of the year. You may get a lower quote if you buy temporary insurance for a few months during the low-traffic seasons.
Shop Around and Get Multiple Quotes
Getting three or more quotes gives you a view of the average cost of tow truck insurance you may pay. Some agents and websites are very good at selling their prices as cheap tow truck insurance when really they are charging far more than they should be.
You may be able to negotiate lower premiums for your commercial tow truck insurance if you have other policies with your provider. It makes sense to have your key insurances such as business insurance, property insurance, public liability insurance with one company and you may get a better “bundle” deal.
Your Business Reputation
If you are dealing with an agent, and especially if an agent has contacted you, then you may be able to promote your business reputation as a method for lowering your premium. Offer evidence on how you run a trusted company, how your business is growing, and how your fidelity to the insurance company sits hand in hand with their reasonable (and low) prices.
A Favorable Claims History
You can push your business reputation all day and all night, but it will not lower your premiums if you have a poor claims history. Go out of your way to ensure you lower the number of claims by hiring better drivers, setting up safety protocols, and installing safety devices. Anti-theft devices will help your case too since SUVs and tow trucks are the most commonly stolen commercial vehicles.
Lower Tow Truck Insurance Claims with Dash Cams
A dash camera pointing backwards can record any errors made by the driver during the hookup process. It may also clear the driver of any wrongdoing which will help lower the claims against your company. The money invested upfront in a dash cam can help you save money on tow truck insurance in the long run.
The dash camera pointing forwards has many uses. For example, if your driver is involved in an incident, the camera may prove that it is not the driver’s fault so that unfair claims are not made against your company. If your driver did something that warrants firing, then the dash camera may catch that too. The dashcam can also protect you against people who try to fake being hit or cause collisions because they think your company has deep pockets that are ripe for compensation claims.
Hire Drivers That Have A Good Driving Record
Run background checks on your drivers to review their driving records. Insurance companies are going to run background checks and they are going to punish you for hiring drivers with unsafe histories with any form of dirt on their records.
Have you considered testing your drivers? After all, some of the drivers who have the longest experience records also have the worst habits, and many of them took their first test back in the days when the rules were far more lax.
Find Experienced Drivers for Lower Tow Truck Insurance
Younger drivers are always punished because they have less experience. Find drivers who have years of driving experience, and who have not made claims themselves. This may help you negotiate lower insurance premiums.
If the driver has commercial driving experience, then this may also help you get a lower insurance premium. Are you able to prove that the driver has been insured with other companies and has not had any claims?
Offer Safety Training and Lay Down Some Rules
Mistakes are going to happen, but it is your job to ensure they happen as infrequently as possible. Set out your rules so that drivers know they will be fired if they break them and have safety training to try to eliminate some of the more common errors that end up costing your company money.
Which Elements Affect My Premiums?
Perhaps if you understand and know what affects your tow insurance premiums, then you may be able to take action within your own company to lower your premiums. At the very least, you may be able to present a better argument to your insurance provider when they try to bump up your prices unfairly.
The elements that affect your premium are:
• Driver Records – Violations increase insurance premiums, and they especially go up of violations were within the last 36 months.
• Business Type – Garages, motor clubs, auction houses, repossessions, and private freelancers all pay different amounts.
• Type of Towing vehicle – The size also matters. Is it a triple axel, double, single, light, heavy, rollback, under-lift, flatbed? Different types warrant different premium prices.
• Where you operate – The statistical data for your area will be considered. This includes if you operate in different cities and states.
• Vehicle Worth – They will take this into account as well as the vehicle make and model.
• The hours you work – This is not just your business hours. If you say you work 9-5, but you take after-hours calls, then you need to tell them because you will need to pay more.
• Business Size – The number of drivers you employ will affect your premium as will the number of trucks you own.
• Vehicles you Tow – Specializing in different vehicles will cost different insurance amounts. For example, towing yachts to auction may cost more than towing secondhand cars.
By paying attention to the above and optimizing where you can, you have some control over your insurance premium.
Guarding Against Future Mistakes
The biggest problem will always be your drivers, but there are ways to learn from what occurs so that you may enjoy lower tow truck insurance premiums in the future.
You can train away some of the most common errors so that fewer claims are made against your company and your premiums go down. Plus, hiring drivers with clean records and keeping them clean is probably going to save you the most money, so try to make it a priority.
Insurance is a major consideration for any business. Read our business insurance section to learn what you need and why.