How to Save Money on Tow Truck Insurance

Can telematics lower tow truck insurance costs?

Telematics programs use vehicle or driving data to help insurers evaluate your business. Some offer an enrollment discount, and the data may also affect your renewal premium. Ask how both work before you sign up.

Progressive Snapshot ProView

Snapshot ProView is available for eligible commercial vehicles without electronic logging devices. Ask what equipment you’ll need, what driving feedback you’ll receive and how participation affects your policy.

Progressive Smart Haul

Smart Haul is designed for eligible for-hire truck policies with an electronic logging device, a USDOT number and primary liability coverage. We can help you check whether your operation meets those requirements.

Smart Haul uses recent driving data at renewal, so your rate may increase or decrease. We can review the program’s terms with you before you enroll.

Questions to ask before joining

• Which drivers and vehicles must participate?
• What app, device or data connection is required?
• What information does the program collect?
• How does participation affect the initial quote and renewal?
• What happens if a device disconnects or your equipment changes?

Keep the required devices and data connections active while you participate. You can also use the driving feedback to identify training opportunities for your team.

Check prior-insurance and multi-policy savings

Continuous insurance and multiple eligible policies may qualify you for savings. Send us your current policy and coverage dates so we can check which credits are available.

Progressive’s commercial discount guide outlines prior-insurance and multi-policy savings, along with a personal-auto benefit for qualifying commercial customers. Check which policy receives the discount when comparing your overall cost.

If your business is new, include your driving experience and any existing insurance information. The insurer will decide which credits apply.

Compare payment plans and fees

Compare the total cost of paying in full with the cost of installments. Paying in full may qualify for a discount. Installments spread the payments across the policy term, but fees can affect the amount you pay overall.

Some programs reduce processing fees when you pay electronically. Check the down payment, installment dates and all charges before choosing a plan.

We’ll help you compare payment options with your business’s cash flow in mind.

Review deductibles

A higher physical-damage deductible may reduce your premium. It also increases your share of a covered loss, so compare the savings with the amount you’d need to pay after a claim. Check your lender’s requirements before making a change.

Ask how your on-hook and garagekeepers deductibles apply when one incident damages several customer vehicles. Review those terms alongside the coverage limits.

Review your truck’s value and equipment

Keep your truck values and equipment information current. If you’re considering another vehicle or a new service, get an insurance estimate before you commit.

Your truck’s value helps determine its physical-damage coverage. Include installed towing equipment, modifications and lender requirements when requesting a quote.

An estimate gives you a better view of the ongoing cost of the truck and the work you plan to use it for.

For an older truck you own outright, weigh the cost of physical-damage coverage against its value and your ability to replace it. Review customer-vehicle coverage, liability, and employee protection separately before making that decision.

Make driver safety part of your business

Insurers consider driving records, license status, claims, and towing experience. Include every driver and describe their experience accurately when you request a quote.

Use consistent procedures for screening drivers, inspecting trucks, positioning vehicles at the roadside and securing each load. Reviewing incidents and near misses can help you focus training where it’s needed.

Consistent safety practices can help reduce losses. Ask whether your insurer offers a credit for the program you use and what you need to qualify.

Match coverage limits to your work and contracts

Check state requirements and customer contracts first. Then consider the value of the vehicles you tow and the combined value of those you may store at your yard.

Illinois operators can use our Illinois tow truck insurance requirements guide when preparing coverage and registration documents.

Let us know before you add repossession, heavy recovery, auction transport or storage. We’ll review whether your policy needs to change before that work begins.

Prepare for renewal

Before renewal, let your agent know about:

• Trucks bought, sold or modified.
• Driver changes and additional experience.
• New storage locations or a different travel radius.
• Changes in roadside, towing, recovery or transport services.
• Employee and payroll changes.
• New customer contracts or higher coverage requirements.

Letting us know about these changes helps us review your renewal and compare available alternatives. Check your claims information, and confirm when the replacement coverage takes effect before canceling an existing policy.