Tow Truck Insurance

Need tow truck insurance for your company? Let our trucking industry professionals help.

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Tow Truck Insurance

As you probably know, the towing industry comes with many risks. Therefore, to mitigate these risks you need proper insurance. However, it can be difficult knowing where to begin.

Tow truck insurance rates have been increasing drastically over the years, so it makes sense you’re looking for affordable and quality coverage.

Here at InsuranceHub Leavitt Agency, we have a team of specialized agents who want to help towing businesses like yours. We’ve been in business since 1985 and our goal is to save you money.

What’s considered a tow truck?

A tow truck is used to transport broken down, impounded, totaled, or illegally parked vehicles. There are several different types of tow trucks, such as a flatbed, hook and chain, wheel lift, integrated, and more.

Many businesses operate tow trucks as a part of their everyday routine, such as:


  • Roadside assistance

  • Repair shops

  • Auto body shops

  • Auction companies

Do you need a CDL to drive a tow truck?

In many cases, yes, you’ll need a CDL to operate a tow truck. This will depend on your truck’s weight and size. If the gross combination weight rating is over 26,001 pounds then you’ll need a CDL.  For more information you can visit the DOT government website:

What type of insurance do tow trucks need?

As stated above, the towing sector is very risky. Not only are you driving a large heavy-duty truck, but you’re also responsible for someone else’s vehicle.

Therefore, you don’t want to be stuck covering the costs if an unwanted incident were to occur.

Here’s a list of the typical coverages you’ll need for your tow truck:

Auto Liability

Garage Liability

Garagekeepers Coverage

On-Hook/In-Tow Coverage

Physical Damage Coverage

Wrongful Repo Coverage

How much does tow truck insurance cost?

Several factors influence the cost of tow truck insurance. First things first, an insurance company will evaluate your business to figure out how risky you are to insure.

Your tow truck insurance rates will be dependent on the following:
minimum insurance coverages for a small business insurancehub
  • Whether or not you do repo work
  • Your drivers
  • Claims history
  • The year, make, and model of your tow trucks
  • Your tow radius
  • Whether or not you keep customers’ cars on your property
  • What you haul
  • How many trucks you have
  • Your location
  • Speeding tickets
  • DUIs
  • Accidents