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The Critical Factors That Affect the Cost of Your Tow Truck Insurance

When you own a tow truck or a towing company, you need to get insurance coverage for it. The businesses face a lot of risks, which may be the reason why insurance rates for them can be high. Different businesses encounter different risks, and different tow truck businesses will pay a different price for their coverage. It is necessary for anyone who runs this kind of business to understand what factors impact the cost of tow truck insurance. This article is written to help you understand this.

Your drivers are among the factors that impact how much you end up paying for your tow truck insurance. The age and experience of your drivers will matter when it comes to your insurance rates. Their Motor Vehicle Records also matter, and they show your driver records including such details as tickets and accidents. When you get drivers who have good MVRs and are also experienced, you can save you money on insurance.

You can also affect your cost of insurance by your loss-runs. The loss-runs provide records of the claims that your company has made, and they indicate risk. The more claims you have, the more it is deemed that your business is riskier, and you will have more expensive insurance.

Your risk exposures are another thing that will affect how much you are required to pay for your insurance. The risk exposures that you face will be as a result of your line of work. Thus, the expenses will differ among different companies with tow trucks such as those which carry strict towing, repo, auto repair shops with wreckers, and roadside assistance businesses. The cars you haul also matter because you will need more expensive insurance when hauling more expensive cargo.

The size of your fleet will also determine your insurance expenses. Each of your trucks has to be appropriately protected, and you will have more expensive insurance when you have more trucks.

You can also expect the value of your tow trucks to affect the much you need to pay for insurance. Your insurance expense will increase with the value of your tow trucks. This is because your loss is likely to be costlier when the value of your truck is higher.

How long your company has been operating is another thing that will impact the much you are needed to pay for insurance coverage. There will be a lot of data from an established company for the insurance company to review. When you have a few loss records, you can secure cheaper insurance compared to a newer company.
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