Tow Truck Insurance

What Insurance Do You Need for Towing?

Protect Your Tow Truck Business with the Right Coverage

When you’re in the towing business, you’re not just driving — you’re hauling, lifting, recovering vehicles, and often working in high-risk environments. That’s why tow truck insurance is essential. At Commercial Proshield Insurance, we help protect towing professionals with tailored policies that address the unique challenges of the industry.

Why Tow Truck Insurance Is Different from Regular Car Insurance

Operating a tow truck involves much more than just being on the road. Whether you’re handling accident recoveries, roadside assistance, or repossessions, the risks are greater — and so are the liabilities. Unlike standard auto coverage, tow truck insurance is designed to meet specific legal requirements, handle third-party claims, and cover the vehicles you tow.

Why Tow Truck Insurance Is Different from Regular Car Insurance

Commercial Auto Insurance

This is the foundation of your towing insurance policy. Commercial auto insurance covers damage to your truck, third-party property, and medical expenses arising from accidents. Since personal auto policies don’t cover business use, this is a must-have for every towing operator.

General Liability Insurance

Towing businesses interact with clients and operate in various settings. General liability insurance covers legal costs and damages if someone is injured or if you accidentally damage someone’s property while performing services.

On-Hook Towing Insurance

Also known as on-hook towing coverage, this protects vehicles while they are being towed. If a customer’s car gets damaged during the towing process due to an accident, theft, or fire, this coverage handles the repair or replacement costs.

Workers’ Compensation Insurance

If you operate a fleet with employees, workers’ compensation is not only smart — it’s often legally required. This coverage protects your business if an employee is injured on the job, covering medical bills and lost wages.

Does Insurance Go Up for Towing?

Yes, insurance for towing businesses typically carries higher premiums due to the elevated risk levels. Here’s why:
  • Increased Liability : You're responsible for both your vehicle and the one you’re towing.
  • Claims History: Prior claims can drive up costs.
  • Driving Records : Insurers assess risk based on your team’s driving records.
  • Location & Route : Urban areas and high-traffic zones may increase premiums.
Insurers use these factors to determine risk and set your tow truck insurance rates accordingly.

Do You Need Special Permits or Business Licenses?

Absolutely. In most states, operating a towing business requires a towing license, liability coverage, and proper registration. If you’re starting a towing LLC, be sure to:
  • Register your business legally
  • Obtain all required permits
  • Meet local and state insurance requirements
Having the right insurance in place not only helps you stay compliant but also gives your clients peace of mind.

FAQs

Tow truck insurance typically covers liability, physical damage, on-hook towing, garagekeepers, and medical payments. It protects your business, drivers, and customer vehicles.
The cost varies based on location, truck type, driving history, and coverage levels. On average, it ranges from $4,000 to $15,000 annually per vehicle.
Yes, commercial tow truck insurance is legally required in most states. Minimum liability coverage is mandatory, and additional coverage may be needed for full protection.

Yes, commercial tow truck insurance is legally required in most states. Minimum liability coverage is mandatory, and additional coverage may be needed for full protection.

Yes, but premiums may be higher. Some providers, like Commercial Pro Shield Insurance, offer flexible plans even for drivers with less-than-perfect records.

You can receive a customized tow truck insurance quote in minutes by filling out a quick online form or speaking with an expert.
The type of truck and services provided (e.g., roadside assistance, repossession) can affect the insurance policy you need.

Get Insured with Confidence – Request Your Quote Today!

Protect your towing business with Commercial Proshield Insurance – dependable, comprehensive, and built for the road ahead.