In this economy, every business is looking for ways to save money. But cutting back on certain expenses now could mean heftier bills later.
Follow these tips so your tow business can save money and be protected from the unexpected:
Make sure you have the right amount of coverage. Even if business finances are tight, don’t lower your liability coverage. Not only could you put your business assets at risk in the event of an accident, it could also jeopardize contracts that require you to carry specific limits.
Instead, make sure your physical damage coverage, which protects your vehicles in the event of a loss like a collision, theft or fire, accurately represents the value of your trucks. Most insurers do not automatically depreciate vehicles, so take a look at your policy to make sure you’re not overstating their current worth. You could save money by adjusting your limits.
Think before canceling your coverage altogether. Going without minimum liability insurance is illegal in most states, and should only be an option if you are temporarily putting your vehicles out of service. Additionally, keep in mind that if you drop your insurance now, you’ll pay more to get a new policy later because most insurance companies want to see proof of continuous coverage. Consider moving to a Comprehensive-only policy during temporary downtime to retain proof of continuous coverage and protect your trucks even when they’re not in use.
Protect yourself from uninsured and underinsured drivers. You might not be the only one who’s looking to save a little dough – other drivers could cut costs by canceling their policy or reducing their coverage. And if one of those drivers hits your truck, you could be left paying for the damages. Uninsured and Underinsured Motorist coverage can protect you.
Keeping an eye on your insurance coverages can protect your business and save you money. Let us help. We can quote competitive tow rates and important tow coverages on the spot with Progressive. Call us today.