TOW TRUCK INSURANCE WHAT EVERY TOWING BUSINESS NEEDS TO KNOW

Tow Truck Insurance: What Every Towing Business Needs to Know

If you operate a towing business—whether you’re running a single rollback or managing a fleet of wreckers—having the right tow truck insurance is essential for protecting your drivers, your vehicles, and your customers’ property. As an independent insurance agent, I help tow truck operators find tailored commercial auto insurance solutions that meet their unique needs and budget.

Key Insurance Coverages for Tow Truck Operators

1. Auto Liability Insurance
   This core coverage protects your business from claims related to bodily injury or property damage that you may cause to others while operating your tow trucks. Most states require this coverage at minimum levels, but higher limits are often recommended due to the risks involved in towing.
2. On-Hook Towing Insurance
   If you’re towing a customer’s vehicle and it gets damaged due to collision, theft, fire, explosion, or vandalism, on-hook coverage pays for those damages. Without this protection, your business could be responsible for costly out-of-pocket repairs.
3. Garagekeepers Legal Liability Insurance
   If you store customers’ vehicles on your lot—whether short-term or overnight—this coverage protects against damage caused by fire, theft, vandalism, or collision while the vehicle is in your care, custody, and control.
4. Physical Damage Coverage
   Accidents happen—even to the best drivers. Physical damage coverage includes Collision and Comprehensive protection to pay for damage to your tow trucks. Optional Fire & Theft with CAC (combined additional coverage) may also be available, especially for vehicles not in regular use.
5. General Liability Insurance
   Separate from auto liability, general liability covers bodily injury, property damage, or personal injury that occurs in the course of your business operations—such as at your business premises or during a service call.
6. Medical Payments Insurance
   This coverage pays for medical expenses for you or your passengers in the event of an accident, regardless of who was at fault.
7. Uninsured/Underinsured Motorist Coverage
   Protect yourself from losses caused by drivers who either don’t have insurance or don’t have enough. This is especially important in high-risk areas where accidents with uninsured drivers are more common.

Additional Considerations for Tow Truck Insurance
State Requirements: Each state sets minimum liability insurance requirements for commercial tow trucks. I can help you ensure you’re in compliance with your state’s rules. Conveniently Located in Louisville Kentucky

Proper On-Hook Limits: You’ll want enough on-hook coverage to match the value of the vehicles you typically tow. Undervaluing this can leave you exposed to significant financial risk.

Roadside Assistance for Heavy Trucks: In select states, optional roadside assistance can be added for heavy-duty vehicles like wreckers and rollbacks, providing extra peace of mind when the unexpected happens.

Need Help Finding the Right Tow Truck Insurance?

As an independent insurance agent, I work with multiple top-rated insurance carriers to find the best fit for your business—not a one-size-fits-all policy. Whether you’re a solo operator or managing a fleet, I can customize a policy that fits your budget and meets all legal and contractual requirements.Call me today at 502-245-3625 or Visit our website to request a quote online.

Let’s make sure your tow truck business is fully protected—so you can focus on the road ahead.