Tow Truck Insurance Policy Information

Tow Truck Insurance. If you own a tow truck business, you likely appreciate the freedom of being your own boss and making your own rules. However, if you don't have the right level of coverage in place for your business, you may be putting your future success into jeopardy.
Understanding the risks of your business and mitigating those risks with the proper tow truck insurance is vital to making your business the best it can be and weathering any claims that are brought against you.
Tow truck insurance protects your towing business from lawsuits with rates as low as $97/mo. Get a fast quote and your proof of insurance now.
Below are some answers to commonly asked tow truck insurance questions:
- What Is Tow Truck Insurance?
- How Much Does Tow Truck Insurance Cost?
- Why Do Tow Truck Drivers Need Insurance?
- What Does Tow Truck Insurance Cover?
- What Does Tow Truck Insurance Cover & Pay For?
What Is Tow Truck Insurance?
Tow truck insurance is a type of commercial insurance that provides coverage for tow truck operators and their vehicles. This insurance is designed to protect tow truck companies and their employees from financial losses due to accidents, injuries, and other unexpected events while they are on the job.
Tow truck insurance typically includes coverage for liability, property damage, and medical expenses. Liability coverage is designed to protect the tow truck company from lawsuits resulting from accidents or injuries caused by their employees while on the job. Property damage coverage is used to repair or replace the tow truck and any other vehicles involved in the accident. Medical expenses coverage is used to pay for medical treatment for any injuries sustained by the tow truck operator or other parties involved in the accident.
In addition to these standard coverage options, tow truck insurance may also include additional coverage options such as on-hook coverage, which provides coverage for any damage to vehicles that are being towed, and garagekeepers coverage, which provides coverage for any damage to vehicles that are stored at the tow truck company's garage.
Overall, tow truck insurance is an essential coverage option for any tow truck company that wants to protect their business and employees from financial losses due to accidents and other unexpected events.
How Much Does Tow Truck Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small towing businesses ranges from $97 to $159 per month based on location, size, payroll, sales and experience.
Why Do Tow Truck Drivers Need Insurance?

Tow trucks are essential vehicles that provide critical services to people who are stranded on the road with a vehicle that is no longer operable. They are responsible for safely towing cars, trucks, and other vehicles to repair shops, impound lots, and other locations. With the nature of their work and the risks that come with it, tow truck companies need to ensure that they have adequate insurance coverage to protect themselves, their employees, and their customers.
One of the main reasons why tow trucks need insurance is to protect them from liability claims. Towing is a risky business, and accidents can happen at any time. If a tow truck driver causes damage to a customer's vehicle while towing it, or if someone is injured while the tow truck is in operation, the company could be held liable for those damages. tow truck insurance can provide coverage for these types of claims, helping to protect the towing company from financial dire straights.
Another reason why tow trucks need insurance is to cover the costs of repairs or replacement for the tow truck itself. Tow trucks are expensive vehicles, and repairs or replacements can be costly. Insurance can provide coverage for these expenses, helping to keep the tow truck company in business even if they experience a major loss.
Additionally, tow trucks need insurance to protect their employees. If a tow truck driver is injured while on the job, the company's insurance can provide coverage for medical expenses and lost wages. Without insurance, the company would be responsible for these costs, which could be financially devastating.
In conclusion, tow trucks need insurance for several reasons such as protection from liability claims, coverage for repairs or replacement of the tow truck, and protection for employees. It is crucial for tow truck companies to have adequate insurance coverage to ensure that they can continue to provide their essential services to the public without the risk of financial ruin.
What Does Tow Truck Insurance Cover?
By law, commercial tow truck operators and owners must carry a minimum amount of liability coverage. Since you are responsible for the safety and well-being of anyone working for you, you also need other coverage types beyond the minimum to fully mitigate any potential claims.
Working with a knowledgeable agent can help you to understand the nuances of tow truck insurance insurance and the particulars of what your particular situation requires.
Tow truck owners can be held responsible if they are found to be the cause of an accident, if the car they tow is damaged, if a passenger in their vehicle is damaged, or if they damage other cars or cause bodily harm while driving.
To mitigate those risks, your agent may suggest:
- Liability insurance. This covers property damage or bodily injury to others caused by you or your driver. In you must purchase at least $15,000/$30,000. This type of coverage may also pay your legal fees if you're ever involved in a claim.
- Medical payments coverage. If you, your driver or passengers in the truck are injured while on the job, this type of insurance pays for medical bills that accrue as a result. Because tow truck drivers often provide a ride for owners whose vehicles are disabled, this is an important coverage type.
- Physical damage coverage. Coverage for damage to your truck, no matter who is at fault, is provided under physical damage policies. Your lender may ask that you keep this insurance on your vehicle if it is leased or financed.
- Comprehensive policies. A comprehensive policy takes care of damage resulting from non-collisions. For example, if your truck is vandalized, catches on fire or you are victim of a natural disaster.
- Uninsured and underinsured motorist protection. Protect yourself from others on the road who are uninsured or who have inadequate insurance with this type of coverage.
- Garage service protection. If you park or store your truck in a covered location, this coverage protects you losses due to collisions, vandalism, theft or fire.
- On-hook insurance. If a vehicle is damaged when you tow it, then this coverage protects you from loss. It also includes protection for damages from collision, vandalism, explosions, theft and fire.
The amount of coverage provided depends on your limits when choosing the policy and any deductible amount associated with your tow truck insurance policy. Evaluate your risk and your tolerance of risk along with your ability to pay for damages prior to choosing the policy for you.
What Does Tow Truck Insurance Cover & Pay For?

Tow truck operators can be sued for various reasons, including:
Property damage: If a tow truck driver damages the vehicle they are towing, the owner of the damaged vehicle may sue the tow truck operator for the cost of repairs. This coverage can help pay for damages to another person's property that the tow truck operator is responsible for.
Personal injury: If a tow truck driver causes an accident that results in personal injury to another party, that party may sue the tow truck operator for medical expenses, lost wages, and other damages. This coverage can help pay for medical expenses, lost wages, and other damages if the tow truck operator causes an accident that results in personal injury to another party.
Wrongful repossession: If a tow truck operator repossesses a vehicle that they did not have the right to repossess, the owner of the vehicle may sue the tow truck operator for damages. This coverage can help pay for damages if the tow truck operator repossesses a vehicle that they did not have the right to repossess.
Negligence: If a tow truck operator acts negligently and causes harm to another party, that party may sue the tow truck operator for damages.
In each of the above examples, insurance can help pay for the lawsuit by covering the costs of legal defense and any damages awarded to the plaintiff, up to the policy limits. It's important for tow truck operators to have adequate insurance coverage to protect themselves from the financial risks of a lawsuit.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7549 Automotive Services, Except Repair and Carwashes
- NAICS CODE: 488410 Motor Vehicle Towing
- Suggested Workers Compensation Code(s): 7219 Trucking NOC - All Employees & Drivers
Description for 7549: Automotive Services, Except Repair and Carwashes
Division I: Services | Major Group 75: Automotive Repair, Services, And Parking | Industry Group 754: Automotive Services, Except Repair
7549 Automotive Services, Except Repair and Carwashes: Establishments primarily engaged in furnishing automotive services, except repair and carwashes.
- Auto emissions testing, without repairs
- Diagnostic centers, automotive
- Emissions testing service, automotive: without repair
- Garages, do-it-yourself
- Inspection service, automotive
- Lubricating service, automotive
- Road service, automotive
- Rust-proofing service, automotive
- Towing service, automotive
- Undercoating service, automotive
- Window tinting, automotive
- Wrecker service (towing), automotive
Tow Truck Insurance - The Bottom Line
Compare rates with multiple insurers to determine which company offers the best plan for you. Work with your agent to determine which coverage types are essential for you and how much insurance you need to fully mitigate your risks.
Additional Resources For Commercial Auto Insurance
Learn about small business commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.
- Insurance Automotive Terms Glossary
- Amazon Delivery Drivers
- Ambulance Services
- Big Rig Truck
- Bobtail Non-Trucking Liability
- Charter And Tour Bus
- Commercial Auto
- Commercial Auto Liability
- Commercial Electric Vehicle Insurance
- Commercial Van
- DoorDash, GrubHub & Uber Eats Drivers
- Dump Truck
- Food Truck
- Freight Forwarder
- Household Goods Moving
- Limousine
- Motor Truck Cargo
- Non-Owned And Hired Auto Liability
- Owner Operator
- Pizza Delivery
- Repossession
- Taxi
- Tow Truck
- Truck
- Specialty Automobiles, Trucks And Recreational Vehicles
- Specialty Physical Damage

Commercial auto insurance is a type of insurance that provides coverage for vehicles used for business purposes. This includes vehicles such as delivery trucks, company cars, and other vehicles that are used to transport goods or employees.
Commercial auto insurance is necessary for businesses that rely on their vehicles to conduct their operations. It helps to protect the business from financial losses due to accidents, theft, or other unexpected events. It also helps to protect the business from potential lawsuits that may arise from accidents involving their vehicles.
There are several types of coverage options available under business auto insurance policies. These include:
- Liability coverage, which covers damages or injuries that you or your employees cause to others while operating a business vehicle.
- Physical damage coverage, which covers damages to your own vehicle, is also available.
- Other coverage options may include medical payments, uninsured or underinsured motorist coverage, and rental reimbursement.
It is important for businesses to carefully consider their commercial auto insurance needs and to choose a policy that offers the right level of coverage. This can help to ensure that the business is protected in the event of an accident or other unexpected event.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Accounts Receivables, Computers, Motor Truck Cargo, Valuable Papers and Records, Employee Dishonesty, Money and Securities, General Liability, Employee Benefits, Umbrella, Motor Carriers Liability and Physical Damage, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Mobile Equipment, Signs, Warehouse Operators' Legal Liability, Cyber Liability, Employment-related Practices, Environmental Impairment, Underground Storage Tank, Stop Gap Liability and International Coverages.
Federal Motor Carrier Safety Administration Information
- Federal Motor Carrier Safety Administration (FMCSA) - The Federal Motor Carrier Safety Administration's primary mission is to prevent commercial motor vehicle-related fatalities and injuries.
- Safer System - The FMCSA Safety and Fitness Electronic Records (SAFER) System offers company safety data and related services to industry and the public over the Internet. Users can search FMCSA databases, register for a USDOT number, pay fines online, order company safety profiles, challenge FMCSA data using the DataQs system, access the Hazardous Material Route registry, obtain National Crash and Out of Service rates for Hazmat Permit Registration, get printable registration forms and find information about other FMCSA Information Systems.
- FMCSA Forms - All forms needed for the Federal Motor Carrier Safety Administration.
- Update MCS 150 - Form MCS-150 and Instructions - Motor Carrier Identification Report.
- How does CSA work? - CSA (Compliance - Safety - Accountability) re-engineers the former enforcement and compliance process to provide a better view into how well large commercial motor vehicle carriers and drivers are complying with safety rules, and to intervene earlier with those who are not.