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You might have noticed that the insurance rates on your tow truck are rising if you have a tow truck or a towing company. Towing business is a risky venture and it explains why the insurance charges are costly. If you look at how things have been moving, you may want to find out about the rate of towing cover.
What is the value of towing insurance? Since towing businesses are not similar and they are vulnerable to various risks, their insurance costs will not be the same as well. What the insurance company will do is to look at a couple of details regarding your towing business to determine the amount of money you are going to pay as your insurance.
Have a look at the factors that affect the cost of tow truck policy.
The drivers you have. The years and the skills that your drivers have can influence your policy rates. In addition to that, their motor vehicle records can also influence your tow truck coverage. An MVR motor vehicle record gives a record of the driver and notes things such as tickets and accidents. In case your drivers have excellent motor vehicle records, there is a likelihood that you are going to save money on your insurance since they have proven to be safe on the road.
Loss runs. Tickets and events are pointers of hazards. In case your business has a pile of tags, incidents or charges, your insurance costs will be expensive because the chances are that you might have another claim. An insurance company will want to analyze your loss run beforehand so that they can issue you with a quote. A loss run indicates the charges that your business has faced. The more claims your company has, the more risky business is. It is more challenging for businesses with several claims to find towing insurance.
The other factor is your tow trucks. It does not matter if you have wreckers or rollbacks but the value of your tow trucks will influence your towing insurance rates. The insurance company will want information such as the year, the type and model of your tow truck. If your tow trucks are expensive then it means you will pay more for insurance. The reason why it is like that is because losses are costlier.
The duration your business has been offering these services. If your business is established and has been in the industry for a while, there is a lot of data for the insurance company to look at. In case your towing business has minimal losses and the recent years, then the chances are that you are going to receive better insurance rates as opposed to a new company.
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