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Enhance Safety: Commercial Insurance for Tow Trucks

Safeguard your towing operations and assets with our comprehensive commercial insurance for tow trucks, providing peace of mind and protection against unforeseen risks on the road.

What is Commercial Insurance for Tow Trucks?

Commercial insurance for tow trucks is designed to protect operators of tow trucks from various risks they inevitably face. This is a specialized form of insurance for commercial trucks designed to cover assets and vehicles being hauled.

Businesses that deal with towing earn income through towing away disabled vehicles in addition to services related to roadside assistance and the storing of disabled vehicles in parking lots or facilities they rent or own.

What Business Needs Commercial Tow Truck Insurance?

Several examples of common towing operations that may require insurance for tow trucks include:

  • Auction haulers
  • Auto Body Shops
  • Auto Club Contractors
  • Auto Salvage Hauler
  • Auto Mechanical Repair
  • Full-service Stations
  • Roadside Service Providers

What Does Tow Truck Insurance Cover?

The following coverages are often carried by the majority of tow truck companies.

  • General Liability Insurance provides compensation if your organization is found legally liable for personal injury, bodily injury, or property damage that is not directly the fault of your vehicles.
  • Garage keepers Legal Liability Insurance protects the vehicles of customers when parked on your commercial property.
  • On-Hook Towing Insurance protects the vehicles of customers while they are being towed. A significant issue being protected from when storing vehicles is Care, Control, and Custody. When the property of others is in your care, control, and custody, you, as a business, have certain obligations to protect said property.

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What Type of Insurance Do Tow Trucking Businesses Need?

The following is a list of coverage plans that you will need for your tow trucking business.

Liability Insurance compensates injuries sustained by others and their property on behalf of your business. It also protects third parties in the form of bodily injury and damage liability.

Medical Payments Insurance is designed to pay off medical bills for you and any passengers in the truck if they are hurt in an auto-related injury or accident.

Physical Damage Coverage pays for vehicular repairs caused by accidents such as falling tree branches or vehicular collisions.

Uninsured Motorist Insurance pays for injuries sustained by you and passengers from drivers without adequate coverage or any insurance whatsoever.

Furthermore, it protects you from hit-and-run operations.

What is Not Covered by Commercial Insurance for Tow Trucks?

Even if you invest in maximum coverage, there are key scenarios and types of cargo that insurance for tow trucks will not cover. Here are several major examples:

Special Freight Types: for policies that may extend to include on-hook towing, you will not receive coverage for products like explosives, drugs, or money. If a business needs to transport hazardous cargo, it will need to invest in hazardous material insurance.

Damages Beyond Policy Limits: damages sustained beyond what a policy can reasonably cover are not protected. Umbrella policies can raise the limits of coverage, however.

Intentional damages: Criminals who commit insurance fraud will intentionally inflict harm on valuable equipment to acquire compensation. Your insurance for tow trucks will not cover intentional harm performed to property or another person.

Average Cost of Commercial Insurance for Tow Trucks

The average in the United States for insurance for tow trucks is approximately $450/month. Use this as a foundation for what you may have to pay. Costs of insurance for tow trucks vary between different insurance carriers and companies.

Smaller towing businesses will pay anywhere between $100 to $160 per month for a general liability insurance policy worth around $1 million. Regardless of whether your offer mechanical services or operate service stations are factors that determine the premium you will be paying.

When you drive a tow truck, you will inevitably confront the same kinds of problems that owners of commercial vehicles encounter while on the road. However, larger vehicles that specialize in towing will face higher premiums.

What Factors Affect Commercial Tow Truck Insurance Premiums?

There is a multitude of factors designed to influence the cost of the insurance for tow truck operations, from the type of towing, and drivers' history, to location.

Data in recent years has suggested annual policies with coverages for both physical damages, primary liability, and a clean record for all drivers to reduce the quote.

Whether you are seeking specialized coverage or just low-cost insurance for tow trucks, you should seek aid from a professional who can guide you in the right direction.

Although the rates are determined by individual states, there are common nuances that affect most tow truck companies.

  • What type of tow trucks do you own, and how many are in your portfolio? This includes rollback carriers, underlift wreckers, single axle, and medium/heavy duty dual or triple axle vehicles.
  • What services do you provide? You need to know if your company offers rotation, impound, auto-repair, salvage, or repossession.
  • Hours of business operation? Do you close at the end of a regular business day, or do you provide service 24/7?
  • What are you towing? Do you only tow vehicles, or do they include RVs, motor homes, vehicles, boats, heavy equipment, and/or motorcycles?
  • Do you implement any state or federally-mandated safety programs?
  • How healthy are your files for driver qualification?
  • What is your loss run history?


Having an adequate amount of commercial insurance for a tow truck means the difference between being forced to shut down the business or recovering with the least amount of financial impairment and interruption.

Regulations between different states vary in terms of minimum levels of necessary coverage and procedures for filing. Always do your research ahead of time to collaborate exclusively with the carriers you trust most.

You need to research and compare quotes from multiple providers to determine the best plan for your unique needs. The majority of carriers offer quotes directly online with the ability to speak directly to an agent. Calls with agents can also provide you with the necessary information.

Use G&G Independent Insurance to compare rates. For the best prices, get a quote or call us today. Our specialists review your unique insurance requirements and recommend plans that protect your company and drivers.

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