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Commercial insurance coverage for tow trucks
A tow truck business earns income by towing disabled vehicles. If that's what you do, you should carry customized tow truck insurance. Examples of businesses that might need commercial tow truck insurance include:
- Roadside service providers
- Auto club contractors
- Rotational towing
- Auto body shops
- Auto mechanical repair
- Full service stations
- Auto salvage and auction haulers
With so much riding on your tow truck, it's vital that you have coverage adjusted specifically for your needs.
Towing and storage protection
Towing insurance can cover more than your typical wrecker or rollback truck. Tow truck companies often carry the following:
- Garagekeepers Legal Liability insurance – Protects your customers' vehicles when they're parked on your property.
- On-Hook Towing insurance – Protects your customers' vehicles while you're towing them.
- Tow General Liability insurance – Pays if you’re legally liable for bodily injury, property damage or personal injury that isn’t directly related to your covered vehicles.
Tow truck insurance coverages
Various towing insurance coverages that you'll want to consider for your commercial vehicles include:
- Liability insurance – This pays for injury that you cause to other people and damage to their property. It includes two coverages:
- Medical Payments insurance – Pays for medical bills for you and the passengers in your vehicle in case they're hurt in an accident or auto-related injury.
- Physical Damage coverage – Pays for repairs to your vehicle caused by an accident, like a collision with another vehicle or a falling tree branch. This towing insurance consists of three coverages:
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Uninsured Motorist insurance – Pays for injury to you and your passengers caused by drivers who don't have insurance or adequate coverage. It also protects you in case of a hit-and-run. Uninsured Motorist insurance for commercial tow trucks can include:
- Uninsured Motorist insurance
- Underinsured Motorist insurance
- Uninsured Motorist Property Damage insurance, where available
How much is tow truck insurance?
In 2023, the median monthly cost of tow truck insurance was $428 for new Progressive customers. The average premium was $600 per month.‡‡
Most policyholders pay closer to the median rate because expensive outliers often drive up the average cost. So, what can you expect to pay?
Many factors influence your tow truck insurance cost, including your location, type of towing and driving history. For example, our data represents new annual policies with both primary liability and physical damage coverages and a clean driving record for all drivers. You can expect your premium to vary depending on your needs.
Be sure to take advantage of our various discounts †, and let us prove we're the right tow truck insurance company for you and your business.
