Creating a partnership with insurance companies is an easy way to get towing contracts.
If you are in the towing business, you should know that contracts are the lifeblood of your towing business. So, how does one get towing contracts with an insurance company?
Stick close as we consider this, as well as additional information related to finding high paying clients.
Securing Towing Contracts With Insurance Companies
Insurance companies provide a wide range of services that include fuel delivery, flat tire repair and towing. We are more interested in towing. So, does an insurance company has its fleet of towing vehicles for such services?
Not at all. It works or partners with local towing businesses which are where you come in.
When starting a towing company, you want to get as many contracts as you can. One of the most logical things to do is to leverage the strength and client base of an insurance company.
So, how do you get started? It’s easy! You’ll need to follow these steps;
Get Your Permits
A lot of states require towing businesses to have the required permits.
So, what are these permits exactly? The basic ones include consent towing permit, indictment management permit and private property permit. The state you live in will determine if you’ll need to obtain additional permits or not.
One way to find out is by making the necessary inquiry. Your country or city clerk’s office should furnish you with all the information you need.
Renew Your Insurance Policy
Your insurance policy will need to be expired before renewing right? First, find out if it is. To check, you’ll need to call or contact your insurance provider to find out if your insurance is outdated or not. Why is this important? It is because you want your towing business protected.
That way, you can avoid incurring liabilities during your business operations.
It is only important because an insurance company will only push or send contracts your way if your towing business is insured. One of the best ways to project a positive image of your business is to apply for an insurance policy that exceeds the minimum requirement.
This projects an image of professionalism. The result is greater confidence in your capacity to deliver.
Sort Out All Licensing Issues
This is one of the things you want to take quite seriously. All road users, especially towing companies must obtain a license. However, not all license types apply to your kind of service. Your towing business should be applying for the Class B Commercial Driver’s License (the CDL).
If you’ve applied before and such licenses are expired, you’ll have to renew.
The need for licensing covers or applies to all your drivers. In other words, each of the drivers working for your towing business, including yourself must get their Class B CDL licenses.
All these must be done before applying for towing contracts with insurance companies.
Become An Approved Contractor
Approved by whom? There are auto associations that offer a wide range of benefits to members. These organizations offer comprehensive auto insurance to members. One such organization is AAA.
For car owners, the benefits are several. The vehicle insurance from AAA provides coverage for assets, for drivers and their passengers in addition to coverage for the property.
As a towing truck business, all you are interested in is finding the best way(s) to get towing contracts. Hence, the need to become its (AAA) approved contractor. As an approved contractor, AAA supplies car towing contracts to you and other towing businesses to tow broken down vehicles. The towing cost is covered and paid to you by AAA. AAA is one of the largest car insurance not only in the United States but in the world. So how does a towing company become approved? It’s easy!
Starting The Process
To begin the application process, you’ll need to find the nearest AAA club office. This might prove difficult to find for some people. If you belong to this category, visit its website and enter your ZIP code. This automatically pinpoints you the address of your nearest AAA club office.
By informing them of your intention to become a towing contractor, you are given a form that you must fill.
You must remember to bring along all the relevant documents for the application process. After filling and submitting the form, AAA sets a date to visit your towing facilities. All this is done while your application is being reviewed. Visits might be done by one or more AAA representative to know if you meet the standard.
You must supply AAA with as much information as they need. This, of course, will include criminal background checks on you and your employees among other things.
A variety of identification documents are collected including your social security number, driver’s license, and residential address. Those for your employees will be collected as well.
Wait For Approval
Your application and documents submitted will undergo a review. As such, you shouldn’t be expecting an immediate reply. Instead, you’ll need to wait for 2 weeks. After two weeks, AAA contacts you with information on whether you’re qualified to become its towing contractor or not. Sometimes, there won’t be a response from AAA for more than the stated time.
In such situations, you’ll need to visit its nearest office to find out if you’ve qualified as to its towing contractor.
This is one of the ways to get a towing contract with an insurance company. The process is worth the try because you get a steady flow of towing contracts whenever its members get stuck. The good news is that AAA has a presence in all states in addition to an impressive membership.
So, wherever your towing business is, there’s an opportunity to leverage the on the size of this giant car insurance company.