With transport being the core of a tow truck company’s business model, it’s fairly obvious that they will need to be well insured if they want to stay in business over the years. But exactly how insured do they need to be?
The following video will explain.
by iamduan via Daily Motion
Important Reasons for Towing Insurance
As you can see, tow trucks need to be insured just as much as any other type of vehicle on the road. Especially when you consider the fact that their primary job is to handle other people’s vehicles.
This is why it is highly important for owners of tow truck businesses to have every truck in their fleet insured, as well as their employees. If something were to happen to a person’s vehicle – or even them – while you are responsible, it could end up costing a lot more in the end. It could even potentially cause the loss of your business altogether someday.
Another important reason why tow trucks need to be properly insured is because of the amount of time they spend on the road each day, several days out of each year. This being the case makes the trucks more susceptible to having accidents themselves and possible breakdowns, or a whole other range of problems just like other cars on the road face.
If one of your tow trucks breaks down, you want to be able to get it back on the road as fast as possible. Otherwise, you’re losing business on top of the cost of the repairs, which will obviously be a lot more expensive without auto insurance.
Tow Truck Insurance Cost
The cost of towing insurance will depend on a variety of factors and therefore, different for company owners in all fifty states. Some of these factors include:
- The number of years the company has been in business and the size they are
- The year, model and amount of fleet they have
- The number of tow truck drivers they employ
- State regulations
- The company the owner decides to get their insurance from
To find the best rate, you should do your due diligence on insurance companies and compare the rates that they quote you. There are plenty of options for purchasing tow truck insurance online but again, you should really do your research before committing to a plan so you only pay for what you really need. You know how insurance companies can be. 🙂
According to a reputable online source for towing insurance, Tow Truck Insurance HQ, company owners can expect to pay anywhere from $4,000 to $15,000 or even more. Again, that depends on all or some of the factors that were mentioned above.
In this article, I’ve mentioned why it’s important for tow truck companies to have good insurance and the factors what will play into the cost. I hope that the content provided has been helpful for you and that you now have some better insights into how much insurance you will need for your tow trucks.