Tow Truck Insurance

Tow Truck Insurance: Essential Protection for Your Towing Business

Tow truck insurance provides coverage for tow trucks, protecting against accidents, liability, and damage while operating the vehicle.

Tow truck operators provide essential roadside assistance, from rescuing stranded drivers to transporting disabled vehicles. However, towing comes with significant risks—accidents, vehicle damage, and liability claims can put your business at financial risk. That’s why having the right tow truck insurance is crucial to protecting your business, employees, and customers.

If you operate a towing service in the U.S., you need specialized insurance tailored to the unique challenges of your industry. This guide will walk you through what tow truck insurance covers, why it's necessary, and the benefits it offers to ensure smooth operations.

Request Quote

What is Tow Truck Insurance?

Tow truck insurance is a specialized type of commercial auto coverage designed to protect businesses that transport disabled, illegally parked, or damaged vehicles. Standard auto insurance policies are not enough for towing companies because tow trucks face higher risks on the road and when handling customer vehicles.

A comprehensive tow truck insurance policy includes liability protection, collision coverage, on-hook towing insurance, and garage liability, ensuring that both your truck and the vehicles you tow are covered.

Key Benefits of Tow Truck Insurance

Liability Protection for Accidents
Tow trucks are constantly on the move, often navigating busy highways or accident-prone areas. If your tow truck is involved in an accident, liability coverage helps pay for damages to other vehicles, medical expenses, and legal fees if you are sued.
On-Hook Towing Coverage
What happens if a car you’re towing gets damaged while in transit? On-hook towing coverage protects against damage to vehicles you are towing, whether from collisions, fire, theft, or vandalism. Without this coverage, you could be responsible for paying out of pocket for repairs or replacements.
Garage Keepers Insurance
Many tow truck businesses temporarily store vehicles at their lot or garage before returning them to owners or taking them to repair shops. Garage keepers insurance covers damage to a customer’s vehicle while it is in your custody, protecting you from unexpected costs due to fire, vandalism, or theft.
Comprehensive and Collision Coverage for Your Tow Trucks
Tow trucks are expensive to repair and replace. Comprehensive and collision coverage protects your vehicles from accidents, natural disasters, theft, and vandalism. Whether your truck is damaged in a crash or a storm, you’ll have financial support to get back on the road.
Medical Payments for Drivers and Passengers
Towing can be a hazardous job, with risks like vehicle collisions, working in high-traffic areas, or dealing with roadside emergencies. Medical payment coverage ensures that medical expenses are covered if your driver or passengers are injured in an accident, reducing financial strain on your business.

Tow truck operators play a vital role in keeping roads clear and drivers safe, but the job risks require strong financial protection. Tow truck insurance is not just a requirement—it’s necessary to ensure your business, employees, and customers are covered in accidents, damage, or liabilities.

Investing in the right tow truck insurance policy safeguards your fleet, maintains compliance with state regulations, and provides reliable service without worrying about financial setbacks. Whether you own a single tow truck or operate a large fleet, having the right coverage is essential for long-term success in the towing industry.