Tow truck insurance falls under the category of commercial insurance. Commercial insurance can be one of the largest single expenses for any tow truck company. The cost of Tow Truck Insurance varies greatly. We often can find our customers rates that are less tan half of what they are currently paying. Following the below recommendations will help you save money on rates.
1. Require driving logs
When tow truck drivers work long hours without needed breaks, it increases the risk of accidents. The more claims your company files, the more your insurance premiums increase. Develop a strict schedule that limits each driver’s hours per week and day.
Have each driver maintain a log of hours. Make certain the log includes day, starting and ending time, beginning and ending mileage, plus client name. Logs are used to help insurance agents find optimum deals. Logs can also come in handy during tax time as proof of expenses. Hold a training session so all drivers understand how to maintain their log.
2. Hire competent drivers
Over the years I have seen “Bad drivers” put more towing companies out of business than any other factor. Understand that not all drivers who hold the CDL designation will be competent drivers. Be sure to check driving backgrounds, references, and compliance with state licensing requirements for each potential driver. Do drug testing, if necessary. Fill your team with only professional drivers who take pride in being a tow truck driver. These individuals understand the importance of maintaining a safe and clean driving record. Avoid bad drivers who have a reputation for job-hopping. As an agent we often see the same poor drivers bounce from one towing company to the next; these individuals can harm relationships with insurance providers and other business associates.
3. Provide continual training
To maintain a safe and efficient team of drivers, you must make certain that your firm provides regular training throughout the year. Currency of training plays a key role in reducing your tow truck insurance rates. A good driver will make fewer mistakes and place safety first.
4. Protect your company and drivers
One of the best ways to save money on the tow truck insurance rates is by keeping documents of any accidents or incidents. Even if an accident is the fault of another driver, be sure to cover your company and driver. Do this by taking pictures of the incident. Take pictures from all angles. Take pictures of skid marks, if any. Remember to include pictures of the other vehicle or party. Be sure to include a picture of the weather conditions surrounding the incident. Find witnesses and find out what they saw. Write this down. Take notes of the entire event. Start a folder with all the evidence you gather. Take this folder to your insurance agent, or have it available for whenever asked.
Protecting your driver and the company is ever-important in this lawsuit-happy society. Your company may face unwarranted lawsuits. Do not accept blame for something your driver didn’t do. By having verifiable evidence of the situation, you are providing proof. This can result in either the claim being totally eliminated, or resulting in a reduced claim.
5. Regularly maintain your vehicles
Preventative maintenance of your tow trucks will lower the risks your drivers will be stranded on the road and in need of roadside assistance. Roadside assistance, or any type of repair, will cost your company money and productivity. No one want’s to hear that the tow truck they called has broken down. It will also increase your insurance premiums. Develop a regular maintenance schedule for each vehicle in your fleet and make compliance a number one concern.
Dealing with an experienced and reputable company, like Urban Insurance Agency, offers you the chance to find the best rates around in a convenient and easy manner. Trained professionals will understand the intricacies of all the above recommendations and how to apply them to your unique company needs.
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Urban Insurance Agency
800 West Huron Street Suite #301 Chicago, IL 60642 312-664-8088