You want to save money on your commercial auto insurance, but cutting back on coverage is not the answer. If one of your tow trucks is in an accident, not having the right coverage could cost you twice. You will have to pay to get the truck repaired and you will also lose out on jobs while it’s in the shop.
Instead of skimping on coverage, think about these other ways to save:
Raise your deductibles. A higher deductible may be the right option. It saves you a little money today. In the event your tow trucks are damaged or stolen, you will pay a little more out-of-pocket.
Hire good drivers. Run Motor Vehicle Reports (MVRs) on potential hires. Your insurance agent can help with this, just make sure to notify your drivers first. Also, tow businesses that require larger vehicles and whose drivers hold Commercial Drivers’ Licenses (CDLs) may qualify for pricing discounts.
Choose your payment plan. Some insurers have significant finance charges associated with their bill plans, or don’t have flexibility in payment schedules. Look for insurers that offer flexible pay plans, including low initial payments and no finance charges.
Shop around for insurance. Save money by making sure you have a commercial auto insurance plan that fits your business needs. Understand the carriers, coverage, and services available to you in order to make an informed decision for your business.
Coverage like On-Hook Legal Liability and Garagekeepers Legal Liability are designed specifically for tow businesses:
- On-Hook Legal Liability covers towed property. A large insurer recently expanded this coverage to encompass more than just the vehicle you have in tow. Cargo like equipment, raw materials, and select personal items in towed vehicles are now covered. In addition, coverage for transmission and transaxle damage is now included. Limits for this truck insurance coverage are now available up to $100,000.