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Tow Truck Insurance
Commercial insurance coverage for tow trucks
What is tow truck insurance?
A tow truck business earns income by hauling disabled vehicles. If that's what you do, you should carry customized tow truck insurance. Towing insurance is a type of specialized commercial truck coverage that can financially safeguard your business by protecting your vehicles, drivers, and the property of others in the event of an accident.
Who needs tow truck insurance?
If you use a truck to tow other vehicles, even if it's not your main business function, you need insurance for towing. Businesses that should consider tow truck coverage include:
If you use a truck to tow other vehicles, even if it's not your main business function, you need insurance for towing. Businesses that should consider tow truck coverage include:
- Roadside service providers
- Auto club contractors
- Rotational towing
- Auto body shops
- Auto mechanical repair
- Full-service stations
- Auto salvage and auction haulers
With so much riding on your tow truck, it's vital that you have coverage adjusted specifically for your needs.Speak to an experienced agent or start an online quote to get a tailored tow truck policy.
Tow truck insurance requirements
For-hire tow trucks larger than 10,000 pounds are mandated by FMCSA regulations to have minimum liability coverage of $750,000. Some locations have higher minimums than the FMCSA. See truck insurance requirements by state to find out how much liability you need to carry.
Trucks used to tow company or customer vehicles on private property are not subject to the same federal requirements, but you'll have to follow state laws for minimum vehicle liability limits.
Essential coverage for tow truck businesses
Towing insurance needs to account for potential damage to towed vehicles and other roadside risks. Tow truck companies often carry the following:
Liability insurance
Liability insurance helps cover costs if you're responsible for injuring someone or damaging their property in an accident. It includes bodily injury and property damage coverage.
If your tow truck causes an accident, bodily injury liability covers the other person's medical expenses and legal fees. Property damage liability coverage helps with repairs or replacements for anything your truck hits.
Physical damage coverage
Physical damage insurance includes collision and comprehensive coverage, which protect your tow truck from a range of risks.
Collision coverage helps pay for repairs if your truck hits something, like another vehicle or a utility pole. Comprehensive coverage protects your truck from things like theft, fire, vandalism, weather damage, or hitting an animal. For some heavy trucks, there's also a more basic option called fire and theft, which covers specific non-collision events.
Medical payments insurance
MedPay covers medical bills for you and your passengers in case they're hurt in an accident or auto-related injury.
Uninsured/underinsured motorist insurance (UM/UIM)
UM and UIM insurance protects you if you and your passengers are injured by drivers who don't have insurance or adequate coverage. It also covers cases of a hit-and-run.
Specialized coverage for towing and storage businesses
Along with basic liability and core coverages, you'll want to consider the following specialized commercial truck insurance coverages for your tow trucks:
Garagekeepers legal liability
Garagekeepers legal liability protects your customers' vehicles when they're parked on your property. It pays for damage caused by vandalism, theft, or a collision. In Texas and Virginia, this coverage is called storage location insurance. If you have multiple locations, each must be insured separately.
On-hook towing insurance
On-hook towing insurance can be added to your liability policy to cover your customers' vehicles while you're towing them. If a car is damaged by theft, fire, or vandalism, this coverage will pay to repair it.
Roadside general liability insurance
Roadside general liability coverage helps protect you if someone else gets hurt or their property is damaged while you're providing roadside services.
How much is tow truck insurance?
In 2024, the median monthly cost of tow truck insurance was $380 for new Progressive Commercial customers. The average premium was $619 per month‡‡.
Most customers pay closer to the median rate because expensive outliers drive up the average cost. So, what can you expect to spend?
Tow truck insurance cost factors
Many factors influence your wrecker insurance cost, including:
- Tow truck type and age
- Your location
- Type of towing
- Driving record
- Claims history
- Coverage limits
Getting a quote is the best way to learn what you'll pay. When you call us or quote online, we'll consider these details and deliver a custom quote tailored to your business.
How to get tow truck insurance with Progressive Commercial
As the #1 truck insurer in the countryΔ, we offer tow truck insurance policies with flexible coverage options and convenient benefits. Call one of our expert agents or go online to find a policy designed to protect your business so you can focus on the road ahead.
Be sure to take advantage of our various discounts †, and let us prove we're the right tow truck insurance company for you.
