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Running a tow truck business is no easy job. Every call presents new challenges, whether it’s assisting a stranded driver on the highway, clearing vehicles after an accident, or storing customers’ cars safely. With so much at stake, your trucks, employees, and reputation are constantly exposed to risks. That’s why tow truck insurance isn’t just another business expense, it’s a safety net that keeps your company financially secure when the unexpected happens.
In this guide, we’ll break down what tow truck insurance is, the types of coverage available, who needs it, and how much it may cost so that you can choose the proper protection for your business.
What Is Tow Truck Insurance?
Tow truck insurance is a type of commercial auto insurance designed for businesses that use tow trucks. Unlike regular car insurance, it’s designed to handle the unique risks associated with towing, such as transporting other people’s vehicles or operating in high-stress roadside situations. It covers accidents, property damage, medical bills, and legal claims that may arise while you’re on the job.
Tow Truck Insurance Requirements
Insurance requirements vary from state to state, but most towing companies need a few basic coverages:
- General Liability Insurance – Protects your business against claims of injury or property damage caused while towing.
- Medical Payments Coverage – Helps with medical expenses for employees or passengers after an accident.
- Physical Damage Coverage – Covers repairs to your own tow truck if it’s damaged in a crash, fire, or vandalism.
- Uninsured/Underinsured Motorist Coverage – Pays costs if you’re hit by a driver with little or no insurance.
Types of Tow Truck Insurance
Tow truck operators face different risks, so policies can include specialized coverage options:
- Liability Insurance – Covers third-party property damage or bodily injuries.
- Collision Coverage – Helps repair or replace your tow truck after a crash.
- Medical Payments – Pays for hospital bills, rehab, or dental care for drivers and passengers.
- Uninsured Motorist – Protects you if another driver causes damage but doesn’t have enough coverage.
Extra Coverage for Towing and Storage Businesses
If your company stores vehicles or provides roadside assistance, you may also need:
- Garagekeepers Legal Liability – Protects customers’ cars while they’re in your care at a lot or storage facility.
- On-Hook Towing Insurance – Covers damage to a customer’s car while it’s being towed.
- Tow General Liability – Helps with legal costs if your business is sued for injury or property damage.
Who Needs Tow Truck Insurance?
Several types of businesses rely on this coverage:
- Independent tow truck drivers
- Towing companies
- Roadside assistance providers
- Auto repair shops that tow customer cars
- Rotational towing businesses working with police departments
How Much Does Tow Truck Insurance Cost?
The cost depends on many factors, including:
- Where your business is located
- The size and type of tow trucks you own
- Driving records of your employees
- The coverages you select
On average, premiums can be high because towing is considered risky work. The best way to know your cost is to request a personalized quote.
Why Tow Truck Insurance Matters
Without the right coverage, even one accident could lead to huge financial losses—medical bills, lawsuits, or repairs that your business has to pay out of pocket. Tow truck insurance keeps your company financially stable, protects your employees, and gives customers peace of mind knowing their vehicles are safe in your care.
Conclusion
Tow truck insurance is more than just a legal requirement—it’s a shield that protects your business, drivers, and customers every time you hit the road. From liability claims to covering damaged vehicles, the right policy ensures you can keep towing without financial setbacks. If you own a towing company or drive a tow truck for work, don’t wait until an accident happens. Compare coverage options today, talk to a local insurance agent, or get a quote online to secure the protection your business deserves.
Looking for more ways insurance can protect different industries? Check out our guides on Why Having Motorcycle Courier Insurance Is Important and What Does Mobile Catering Van Insurance Cover? to see how specialized coverage supports businesses on the road.
