How much is tow truck insurance?
Tow truck insurance isn’t one-size-fits-all. The cost will depend on the type of coverage included, as well as the size of your business. For example, a single tow truck operator will pay less than a company with several tow trucks and a storage lot, but they may pay more per vehicle.
Beyond these variables, other considerations that go into determining the cost of your tow truck insurance include:
- Location: Big cities or urban developments with more traffic typically come with a higher risk of accidents. Your location will have a significant impact on your insurance premium.
- Hours: Working around the clock can give you an edge with customers, but it also comes with more risks. Whether you’re open 24 hours or working typical business hours will have an effect on your tow truck insurance costs.
- Towing capacity: What types of tow trucks do you drive? From underlift wreckers to rollback carriers, your fleet matters. The general type and value of the vehicles you tow will also be a factor.
Also, as you browse various types of coverage, pay close attention to the deductible. This is the amount you will have to pay before insurance kicks in, as well as the absolute limit that the insurer is required to pay. The first number should be relatively low, and the latter should be high. Which one you choose will alter your final cost, though.