Tow Truck Insurance
Towing companies operate specialized vehicles while handling cars, trucks, and other property belonging to customers. From roadside recovery and accident cleanup to vehicle transport and impound services, these operations can expose a business to traffic accidents, injuries, damaged customer vehicles, theft, and other costly risks.
Tow truck insurance can help protect towing businesses against certain financial losses involving liability, company vehicles, customer vehicles, employees, and business property. Coverage can be tailored to your operations, whether you own a single tow truck or manage a larger fleet with multiple drivers.
Who May Need Tow Truck Insurance?
Specialized towing coverage may be appropriate for businesses such as:
- Independent tow truck operators
- Roadside assistance companies
- Vehicle recovery businesses
- Auto repair facilities
- Auto body and collision repair shops
- Vehicle repossession companies
- Auto salvage and impound lots
- Businesses transporting customer vehicles
The appropriate coverage may depend on the types of towing performed, number of vehicles and drivers, operating radius, claims history, vehicle values, customer vehicle limits, storage operations, and whether the business provides emergency or repossession services.
Common Tow Truck Insurance Coverages
Commercial Auto Liability Insurance
Commercial auto liability insurance may help pay for certain bodily injury and property damage claims when a covered driver causes an accident while operating an insured tow truck. Required liability limits may depend on applicable laws, contracts, vehicle weight, and business operations.
Physical Damage Coverage
Physical damage insurance can help protect an insured tow truck itself. Collision coverage may help pay for qualifying damage caused by a collision or rollover. Comprehensive coverage may apply to certain non-collision losses involving theft, vandalism, fire, severe weather, or falling objects.
Coverage is typically subject to a deductible and the valuation terms of the policy. Permanently attached towing equipment should be accurately listed and valued.
On-Hook Towing Insurance
On-hook towing insurance may help cover certain physical damage to a customer’s vehicle while it is being towed or transported by the insured business. For example, coverage may apply if a customer vehicle is damaged in a collision, fire, or other covered incident while attached to a tow truck.
Coverage limits should reflect the types and values of vehicles typically transported.
Garagekeepers Insurance
Garagekeepers insurance may help cover certain damage to customer vehicles while they are kept at a towing company’s garage, storage yard, or other covered location. It generally applies while vehicles are in the business’s care, custody, or control.
Garagekeepers coverage and on-hook towing coverage address different stages of handling a customer vehicle, so a towing business may need both.
Medical Payments and Uninsured Motorist Coverage
Medical payments coverage may help pay certain medical expenses for covered individuals following an accident, regardless of fault. Uninsured or underinsured motorist coverage may provide protection when a covered tow truck is involved in an accident with a driver who has insufficient insurance. Availability and requirements vary by state.
Workers’ Compensation Insurance
Tow truck drivers may be exposed to traffic, lifting injuries, falls, and accidents involving cables, winches, and moving vehicles. Workers’ compensation insurance may provide medical and wage-replacement benefits to qualifying employees who suffer work-related injuries or illnesses. Requirements vary by state.
Tow Truck Insurance FAQs
How much does tow truck insurance cost?
Costs vary based on vehicles, drivers, towing services, operating radius, claims history, customer vehicle limits, storage operations, coverage selections, and other factors.
What is the difference between on-hook and garagekeepers insurance?
On-hook coverage may protect a customer vehicle while it is being towed. Garagekeepers insurance may apply while the vehicle is stored or kept at a covered business location.
Does tow truck insurance cover personal property inside a customer vehicle?
Not necessarily. Personal belongings may be excluded or subject to separate limits. Policy terms should be reviewed carefully.
Does a policy cover every truck, driver, and towing service?
No. Policies contain conditions, exclusions, limits, and driver requirements. Businesses should accurately disclose all vehicles, drivers, equipment, services, and operating areas.
