The Why Of Insurance

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In the roadside assistance business, insurance is the hardest things to attain and one of the most important things for your business to have. Having the correct insurance will save you from any unwanted liabilities resulting from the use of your services. It will also enable you to attain contracts with insurance companies like AGERO OR AAA. 

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Insurance Types

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There are two or three types of insurance you will be expected to have, based on the contracts you hold.

 

1. General Liability - 1,000,000 - 2,000,000

2. Garage Keepers/on Hook - 50,000 - 500,000

3. Commercial Auto Insurance - 100,000 - 1,000,000

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Insurance Criteria

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Agents & underwriters decide what you pay based on 3 criteria. Knowing the criteria will give you the best shot at attaining affordable insurance.

 

1. Driving Record - how long you've been driving and how many points you have on record if any

2. Experience in Business – Prior Exp, past jobs, background, etc.

3. Projected Revenues – How much you expect to make.

 

Your Driving Record

 

A bad driving record means that you will most likely be a liability to an insurance company, so make sure to have a good driving record and if you don’t, get it right before you apply. A few instances such as a speeding ticket can mean the difference in paying $100 per month vs $200-500 per month.

 

Your Experience

 

 Experience is also a factor. If a 10-year truck driver who worked for X company for 10+ years now wants to enter business themselves, many underwriters won’t have an issue writing the policy as long as a good driving record is attained. Now, you put someone that has 3 months Exp and wants to do the same, an underwriter may consider higher premiums or may not be willing to write the policy at all, due to lack of experience.

 

Your Projected Revenues

 

Revenue is another factor. If you expect to make 200,000 in your first year you can expect your insurance to be higher than if you expect to make 50k your first year etc. Vice Versa.

 

How Underwriters Collect Info

 

Underwriters will typically send you information packets where you will provide this information along with other personal info. Be wary of your answers and always be truthful. Any deception can void a claim if the insurance company decides to audit, avoid this at all costs.

 

 

Where to Attain Coverage

 

Once you know that you have the best odds of getting a low premium. You will want to know where to get insurance. If you don’t have commercial insurance already, be sure to call your current insurance agent and tell him you want to ensure a commercial vehicle used for business, and they will do a good job of giving you some options.

 

Be sure to shop around and get several quotes before you make your decisions, as premiums from company to company can differ drastically. For general liability and garage keeper’s insurance you can also ask your agent but if he leads you astray, you can visit these links, enter your zip code and ask about their commercial insurance policies.

 

If none of these insurance companies are underwriting at the time, try in a month or so after. Insurance companies "mitigate risk". This means that they have limits on how much risk they are willing to undertake during a certain time period. Risk is mitigated all the time. This means that one month, a company may be able to offer you a quote but next month that same company won’t. Use this to your advantage and know that just because one company said no doesn’t mean the next will.

 

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https://www.libertymutual.com/

https:/i/www.progressivecommercial.com/business-insurance/general-liability-insurance/

https://www.geico.com/general-liability-insurance/

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