Towing is an essential service that allows stranded motorists to get on their way. Unfortunately, the profession is rife with predatory towing operators who charge exorbitant rates.
Towing puts strain on your vehicle and trailer, so it’s important to maintain a safe weight rating. This means keeping up with oil changes, tire rotation and balance, and other maintenance. Click here to Learn More.
Towing is a business, so you’ll need to set up a bank account and open a credit card on behalf of your company. This will allow you to separate your business expenses from your personal costs, and can help you avoid issues with tax laws. It’s also important to get an employer identification number (EIN), which is a unique tax code for your business.
One of the biggest startup costs is purchasing or leasing a tow truck. You’ll also need to budget for recurring costs like fuel, truck maintenance, and employee wages. Depending on the state you live in, there may be licensing fees or permits you need to secure as well.
Once you have your towing business established, the key is acquiring clients. To do this, you’ll need to advertise your services in the local area, whether online or offline. Create a website with detailed information about your services, and optimize it for local search engines. You can also submit your business to Google My Business to ensure that you show up in searches by prospective customers. Don’t forget about offline marketing, either: local newspaper classifieds and community boards can be great places to promote your towing business.
As you acquire clients, keep in mind the different types of towing you can offer. For example, specialized towing services are often in demand, including motorcycle towing, RV towing, and classic car towing. Other common towing services include parking enforcement towing, towing for law enforcement, and contracting with property owners to tow unauthorized vehicles from their premises.
When calculating your rates, be sure to factor in your costs and the profit margin you want to make. For example, if you’re offering emergency roadside assistance, it’s vital that your drivers follow any safety protocols recommended by roadside assistance providers or law enforcement officials. This can reduce stress for customers and improve your reputation as a trustworthy towing service provider. It’s also a good idea to invest in dispatch software, which can help you manage calls, optimize routes, and streamline communication. This is typically an annual expense that ranges from $50 – $500+ per month, depending on the complexity and features of the platform you choose.
Equipment
A towing service needs a variety of equipment, ranging from basic tools to complex electronics. One essential is the ability to see what’s going on. It can be challenging to see the brake lines of a trailer that’s pulling behind a vehicle, or the connection point of a tow strap between the two vehicles. Handheld lights are an inexpensive and simple way to remedy this. They also allow you to work safely on an uneven surface or when the load is tilted.
Another important piece of equipment is a telescoping boom. These are used to get vehicles out of difficult areas, such as ditches or steep hills. They are attached to the towing truck and can be lowered to the ground with hydraulic functionality, making it easier for your vehicle to be retrieved.
Other towing equipment includes the appropriate hitch, trailer brakes and safety chains. Trailers range in size, from utility trailers to motorhomes, and have varying capacities, depending on the manufacturer. The towing vehicle’s gross combined weight rating, or GCVWR, should be understood. This is the maximum amount of weight the towing vehicle is rated for, when fully loaded with the trailer and all cargo.
Towing equipment also includes the proper base plate and tow bar for your vehicle. You can find these at any auto parts store or online, and they are usually vehicle-specific. Some of them have integrated trailer wiring to enable features like trailer stability programs or reverse light activation.
If you are using a truck to pull a trailer, it’s also smart to consider a rear view camera system that’s specifically designed for trucks and SUVs with the towing capacity. This add-on allows you to control the reversing process from the driver’s seat and eliminates the guesswork that comes with backing up.
If you’re hiring a towing company, be sure to provide clear instructions about your location and the problem with your vehicle. This will help ensure the tow truck arrives with the right equipment and is able to assist you as quickly as possible. It’s also a good idea to secure any personal belongings in your vehicle before it is picked up. This will prevent them from falling out of the vehicle or getting damaged in transport.
Safety
Whether you’re hauling your offroad toys to the local lake, helping out a friend with a move or pulling a trailer of horses to the show grounds, there are specific towing safety measures that need to be taken into account. Practicing these safety measures, as well as understanding and adhering to towing regulations, can help you avoid accidents and keep both you and your customers happy.
The first step to towing safely is knowing how much your vehicle can handle. It’s important to check the gross vehicle weight rating, or GVWR, of both your towing vehicle and trailer before each trip. This number accounts for the weight of both passengers, cargo and the tongue of the trailer. It is not safe to exceed this limit, as it can cause damage to the vehicle and a dangerous situation for other road users.
Aside from checking the weight ratings, it’s essential that your towing vehicle and trailer are properly equipped for the job ahead. Make sure you have the proper hitch, safety chains, working lights and that the tires are rated for the load. Also, consider upgrading your suspension to a heavy-duty model. This can help prevent your vehicle from sagging and can also make the ride more comfortable.
While towing a trailer, it is also crucial to leave adequate space behind your vehicle and allow for the extra length of the trailer when changing lanes or passing other vehicles on the highway. Avoid slamming on the brakes or making sharp steering wheel corrections, as these can shift cargo and cause trailer sway.
It’s a good idea to practice driving with your trailer in an empty parking lot before heading out on the open road. This will help you get used to the additional weight and size of the trailer, as well as familiarize yourself with the different ways your vehicle responds while towing.
Lastly, be sure to have adequate insurance coverage for your towing business. This can protect you from financial burdens in the event of an accident or other incidents that may occur while on the job.
Insurance
As a towing business owner, you need commercial auto insurance. This policy covers your vehicles and operations against accidents, property damage and other potential claims. You can also buy on-hook coverage, which reimburses your customers if their vehicle is damaged while in your care. This type of coverage is designed specifically for towing businesses, and it may be cheaper than purchasing roadside assistance coverage through credit card perks or a membership with an automotive club like AAA.
In addition to commercial auto insurance, you need general liability insurance for your towing company. This policy protects your business against claims that you caused bodily injury or property damage, as well as legal defense costs if you are sued. You may also want workers’ compensation insurance for your employees, as this provides wage replacement and medical benefits for employees who are injured on the job.
Depending on the size of your tow truck fleet and other factors, you will need to evaluate different insurance providers and policies. Compare prices, terms and conditions to find the best option for your business. Make sure to take into account any restrictions on the amount of towing services that your policy will cover, as this can affect your decision-making process.
In most cases, you will need to have a commercial auto insurance policy before you start operating a towing service. However, you can purchase a standalone towing and labor coverage policy that will pay for the cost of labor and parts if your truck breaks down while you are transporting a customer’s vehicle. You can also obtain towing and labor coverage as an add-on or endorsement to your personal auto insurance policy. Your agent will be able to help you decide whether this is a good option for your business. They can also explain the reimbursement limits and other details of your policy, including how long it takes to submit a claim and the impact of longer-distance tows. They can also recommend other insurance policies, such as commercial property or business interruption insurance.
