Question 1

How much does tow truck insurance cost?

Accepted Answer

Tow truck insurance typically costs $6,000-$18,000 per year per truck. Light-duty flatbed tow trucks are on the lower end, while heavy-duty wreckers and rotators cost more due to higher equipment value and risk. Factors include your fleet size, services offered (roadside vs. recovery vs. repo), and claims history.

Question 2

What is on-hook coverage?

Accepted Answer

On-hook coverage protects vehicles you are towing from damage while being transported. It is the tow truck equivalent of cargo insurance and is essential for every towing operation. Limits typically range from $50,000 to $250,000 per occurrence.

Question 3

Do I need garagekeepers insurance?

Accepted Answer

If you store vehicles at your lot after towing, yes. Garagekeepers covers damage to customers' vehicles while in your care at your storage facility from fire, theft, vandalism, and weather. Most towing companies need $100,000-$500,000 in garagekeepers coverage depending on lot capacity.

Question 4

What types of tow trucks need different coverage?

Accepted Answer

Light-duty flatbeds, wheel-lift trucks, heavy-duty wreckers, and rotators each have different risk profiles and insurance needs. Heavy-duty recovery operations require higher liability limits and specialized equipment coverage. We match your coverage to your specific tow truck types and services.

Question 5

Is repossession towing covered under standard policies?

Accepted Answer

Repo work often requires specific endorsements due to the higher risk of property damage and confrontation. We find carriers that write repo-specific coverage with appropriate limits. Expect to pay 20-40% more for a policy that includes repossession operations.

Question 6

Do I need commercial auto insurance for a tow truck?

Accepted Answer

Yes. Tow trucks are commercial vehicles and require commercial auto insurance. Personal auto policies will not cover towing operations. You also need on-hook coverage, which is specific to towing and not available on standard commercial auto policies.

Question 7

What insurance do I need for a motor club contract?

Accepted Answer

Motor clubs like AAA, Agero, and NSD require specific minimum coverages including $1M liability, $100K+ on-hook, garagekeepers, and garage liability. They also require you as additional insured on the policy. We structure policies to meet motor club requirements.

Tow Truck & Wrecker Insurance

What It Covers

Who Needs This Coverage

Typical Coverage Package

Frequently Asked Questions

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