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What Is Tow Truck Insurance?

Businesses that make money by moving broken-down cars are protected by commercial tow truck insurance. This guide will tell towing business owners and contractors everything they need to know about tow truck insurance, such as what it covers, how policies are set up, how much it costs, and how to compare insurance companies.

Tow truck insurance is a group of commercial auto insurance policies that protect businesses that make money by towing other cars financially and legally. Most tow truck insurance covers injuries to people and damage to property, and it also covers the cars that are being towed and stored.

How Does Tow Truck Insurance Work?

Every company's risk level and willingness to take risks differ, so operators need to know what factors affect their premium.

A commercial tow truck insurance premium is based on several things, many of which are unique to your business and its location. So, it's important to have a local insurance agent who can explain the different costs.

Driving distance

As with any insurance, car insurance rates go up the longer you drive. More miles mean more opportunities for accidents. Because of this, rural tow truck operators have to pay more for insurance. These premiums increase even more if your business takes you across state lines since coverage minimums vary by state.

Working hours

Your drivers are more likely to get into an accident at night, so your rates go up if you run a tow truck business that is open 24 hours a day.

See what you could save on auto insurance

Owning an impound lot

If your business is to pick up and drop off cars, you don't have much liability risk because you only have the cars for a short time. Things get more complicated if you own the lot where the cars are kept. You have to keep them safe for several days or weeks. If you are in the business of repossessing cars, the people whose cars you have taken could try to steal them back. This is both a security risk and a financial risk for you.

Location of business

When there are more cars on the road, there are more accidents. Because of this, insurance companies usually charge tow truck companies in densely populated urban areas higher premiums than in less populated rural areas. The number of uninsured drivers in your area is also taken into account. If there are more of them, your rates will go up.

History of business

Insurance companies are good at figuring out how risky something is, but if you've only been in business for a year or two, they don't have enough information to make a good decision. Even if your record isn't perfect, insurance companies are more likely to offer lower premiums to businesses that have been around for a while.

When choosing a policy, the business owner must work with a representative from the insurance company to figure out the policy, coverage, premium, limits, deductible, and claims-filing system.

Here's how to describe these things:

  • Policy / Coverage: the incidents, damages, and expenses that an insurer will cover
  • Deductible: the amount of money that the company must pay out-of-pocket toward a claim before the insurer will cover any remaining expenses
  • Policy Limit: the maximum amount the insurer would pay toward covered incidents; anything above this amount is the insured's responsibility.
  • Monthly Premium: what the policy costs each month
  • Claims: Request that a policyholder submits in writing to an insurance company to receive compensation for a covered incident

A "covered incident" is an accident, loss of money, or other event listed in the insurance policy. The insurance company would have to pay for the damages directly or give the policyholder money back.

Depending on the policyholder's coverage, a covered incident could pay for costs related to drivers, their passengers, and other people or property that was hurt because of the incident.

Different kinds of towing insurance coverage cover different kinds of accidents, so policies almost always have more than one coverage.

Why do you need tow truck insurance?

Tow trucks are business vehicles that are not covered by personal auto insurance.

Tow trucks have some risks that other commercial vehicles don't have. Businesses that run tow trucks are responsible for their own cars and the cars they are hired to tow. Because of this, coverage tends to be more specialized than a standard commercial auto insurance policy.

Tow truck insurance needs to be bought by anyone who uses a tow truck for business. This is true for small businesses with only one truck and big companies with dozens of trucks.

Some businesses that might need commercial tow truck insurance are those that offer roadside assistance, auto body shops, auto mechanic shops, haulers for auto salvage and auctions, full-service gas stations, and businesses that take back cars that have been stolen.

The business owner has to buy the tow truck insurance policy, even if they don't drive the truck themselves. Business owners should choose a set of insurance policies that cover the tow truck, the driver, the business, and anyone or anything that could be hurt by the tow truck.

Tow Truck Insurance Coverage

Liability Insurance

Liability insurance is required for tow trucks just like private cars, but because of what they do and how many miles they drive daily, it costs a lot more. Liability insurance for a tow truck costs an average of $450 per month.

Medical Payments Insurance

Medical payments coverage, also called MedPay, pays for the medical bills of drivers and passengers who were hurt in an accident with a tow truck, no matter who was at fault. Medical payments coverage is important because primary liability insurance only pays for other people's injuries if the tow truck is at fault in an accident.

Medical payment coverage is something that most insurance companies will offer. However, businesses that do tow should also consider getting workers' compensation insurance, which pays for lost wages when an employee gets hurt.

Physical Damage Coverage

This is the same as collision and comprehensive car insurance for people who don't drive for a living. It covers any damage done to the vehicle being towed. It protects you in case of an accident, a fire at the shop, or the theft of the vehicle, and if you're financing your tow truck, it's a requirement. Adding physical damage coverage to your insurance costs about $200 more per month, depending on what your car is worth.

Property Damage Liability

Property damage liability pays for the costs of fixing damage to someone else's property caused by a covered event. It does not pay for damages to the tow truck, the other property of the towing business, or the car being towed. All 50 states also require that you have coverage for damage to your property. Most of the time, property damage and bodily injury liability are bought.

Uninsured and Underinsured Motorist Coverage

If another driver causes an accident with a tow truck, the other driver may not have enough insurance to pay for the tow truck driver's injuries and the damage to the truck. Uninsured motorist coverage pays for costs related to accidents where the driver at fault is not insured. In the same way, underinsured motorist coverage pays for damage to the tow truck and its driver when the driver at fault doesn't have enough insurance coverage. Most insurance companies will cover both, and the two are often sold together.

On-Hook Towing Coverage

On-Hook coverage protects tow truck drivers if they damage a customer's car while it's being towed. It's not the same as liability insurance which protects the driver in case of an accident. How much this on-hook insurance costs will depend on how much coverage you want and how much your deductible is. Most of the time, on-hook insurance is included in the price of tow truck insurance, but it does raise the premium by about $50 a month.

Motor Truck Cargo Coverage

Some insurance companies may tell the difference between hook-and-chain and flatbed tow trucks. These insurance companies could also consider a car being moved on a flatbed " cargo. In this case, on-hook towing coverage would not apply. Instead, a towing company would need motor truck cargo coverage, which covers damage to a truck's freight or cargo while in transit. Usually, this coverage is for companies that move and ship things, but in this case, it would cover both the vehicle and its contents being carried on the flatbed truck.

Motor truck cargo coverage pays for physical damage caused by fire, collision, theft, or vandalism. It is sold as a separate policy and can be bought from any big auto insurance company.

Garage Keepers Coverage

If your business involves storing things, as a body shop does, you'll need insurance to protect a customer's car while it's off the tow truck and waiting to be fixed. This coverage changes based on how many cars are stored and where the garage is. Coverage usually costs between $60 and $160 per month.

Garage Liability Coverage

Businesses like tow trucks and auto repair shops that work out of a garage or shop should think about getting garage liability insurance. This coverage is liability insurance for work done in a garage or shop. Whereas garage keepers' legal liability protects the cars kept in the garage, garage liability coverage protects the business against bodily injury or damage to its property. It doesn't pay for damage to customer property or tow-away cars. However, it does protect you from liability if a customer gets hurt in the garage by accident or if fire, theft, or vandalism damages company property.

Cost of Tow Truck Insurance

It's hard to give an exact cost for tow company insurance because rates depend on many things. The average cost of tow truck insurance per month for most towing businesses is $459, which is $5391 per year for a $1 million general liability coverage.

The "cost" of tow truck insurance is the amount a business owner pays monthly for premiums. It's not surprising that monthly premiums tend to be higher for policies with higher coverage limits. Rates for tow truck insurance depends on many things, like the services the business offers, the type of tow truck, the deductible, and where the business is.

Depending on the type of coverage needed and the insurance limits, tow truck insurance costs between $4,000 and $15,000 per vehicle per year. Other things that affect tow truck insurance rates are how safe the drivers are, what services they offer, and how many trucks the policy covers.

Insurance for a tow truck is expensive for more than one reason. One big reason is that you are more likely to get hit by other cars because tow trucks usually move other cars. Another risk factor is that you need towing services more often when the weather or road conditions are bad.

Since tow truck companies are so different, it's hard to say the average cost. For example, progressive says that the average cost of tow truck insurance (primary liability and physical damage) for their customers in 2019 was $464 per vehicle per month or $5,568 per year. But each type of coverage has its range of costs, which affects the total amount a policyholder would pay. The table below shows how much some of the different parts of a tow truck policy cost.

Coverage Annual Cost
Liability (Bodily Injury + Property Damage) $5,000 - $7,000
Physical Damage $1,000 - $3,000
On-Hook Towing (Bundled with Liability Insurance) $4,200 - $9,600
Garage Keepers Legal Liability $1,000 - $1,300
Wrongful Repossession (Bundled with Liability Insurance) $10,000 (assuming 25% repo work)

How is Tow Truck Insurance Calculated?

Some things that affect how much a tow truck insurance policy costs are up to the business, while others are just part of the business.

Here are some of the most important things that affect how much coverage costs:

Profile of the Policyholder

Is the policyholder a business with multiple vehicles and covered drivers, or is it an individual with a single truck? The size of the business will greatly impact how the policy is set up and how much it costs.

Businesses that insure more tow trucks will pay more for insurance overall, but each truck should cost less to cover. How long the company has been in business is another important part of the profile of the policyholder. Companies under two years old can be seen as higher risk, so they will have to pay more.

Driver Qualifications

The driving history of tow truck employees also affects the cost of tow truck insurance, just like personal auto insurance. Accidents are less likely to happen to tow truck drivers with more experience than drivers with less experience. At the same time, insurance costs go up a lot for drivers with a history of getting into accidents, speeding, or acting in other dangerous ways. To keep premiums low, it's important to look at drivers' Motor Vehicle Reports (MVRs) and keep putting money into safety training.

Kinds of Insured Trucks

Tow trucks come in different sizes and styles, such as single axle, medium and heavy-duty dual or triple axle, underlift wreckers, and rollback carriers. As a general rule, the bigger the truck, the higher the premium. Insurance costs can also be affected by how old the trucks are. Newer trucks cost more to insure because they are more expensive to replace.

Offers

A towing company's insurance depends on what services they offer, such as roadside assistance, auto repair, repossession, salvage, impound, or rotation. This, in turn, will change the price. For example, repossession is one of the most expensive and hard-to-find service coverages. In addition, not all insurance companies will cover wrongful repossession because it is risky. Most big insurance companies don't offer this coverage at all. Tow trucking companies looking for this type of insurance should look for local insurance companies. A tow truck company can still get its main coverage from a big company like Progressive or Liberty Mutual. They can buy extra coverage for wrongful repossession from another company.

Cars Towed

This could mean new or used cars, broken down cars, salvage materials, or heavier vehicles like motor homes and RVs, boats, trailers, or heavy equipment. The cost of insurance goes up with the size and weight of the vehicle being towed.

History of Claims/Losses

Insurers will also look at the company's loss-run history, which records all claims made on the insurance policy in the last three to five years.

The cost of insurance goes up as the number of claims goes up. So even a history of small claims can cause an insurance company to raise the cover price or refuse to give it.

Measures and plans for safety

Insurance rates could decrease for towing companies that have implemented safety programs, such as regular vehicle inspections, GPS tracking, and driver training. Of course, this is already a good way to run a business, but it can also help you save money when you buy insurance.

Driving Radius

If you drive long distances across states or country borders, your insurance rates will be higher than if you only drive in your town. In addition, long-distance drivers will have to pay more because they need more liability insurance to meet federal requirements for interstate commerce.

Discounts

Insurance companies offer discounts to tow truck drivers based on their driving records, safety programs, and how long they have been in business. For example, progressive offers a Business Experience discount to tow truck companies that have been in business for more than three years.

Best Tow Truck Insurance Companies

Progressive Tow Truck Insurance

Progressive offers a wide range of policies for tow truck businesses, including primary liability, physical damage, motor truck cargo, on-hook towing, garage keepers' legal liability, medical payments, and uninsured motorist coverage. In addition, the insurance agents at Progressive can tailor a solution to the needs of a business.

Progressive also has many discount programs for its business customers, such as a Business Experience Discount and a Commercial Driver's License (CDL) Discount. In addition, if towing companies join Progressive's Smart Haul® Program, which uses an electronic logging device (ELD) to track driving data, they could be eligible for more savings.

Liberty Mutual Tow Truck Insurance

Different states have different coverage options, so it's best to talk to an agent to find out what's available in each place. In 2014, Liberty Mutual and Trinity Transportation Services also started the Trinity Towing Program. This program is available in 43 states. It gives more specialized coverage, like on-hook towing and garage keepers coverage (the excluded states are Illinois, Indiana, Massachusetts, Michigan, New Jersey, Ohio, and Tennessee).

Liberty Mutual does not list online how much its average insurance costs.

Instead, people who drive tow trucks should call or go online to get a quote from a Liberty Mutual agent. Liberty Mutual also discounts for buying more than one policy or paying for it all at once.

Prime Tow Truck Insurance

Prime Insurance Company is a company that focuses on finding insurance solutions for businesses that are higher risk or have special needs, like towing companies that do repossessions. They want to fill the places where most insurance companies don't cover you. Prime is smaller than most insurance companies, but that doesn't mean they are small. In 2019, Prime wrote nearly $225 million in direct premiums.

Prime offers coverage for almost everything a towing and repossession business might need. This includes garage keeper's legal liability, on-hook towing, wrongful repossession, assault and battery, transportation of dangerous goods like guns, and much more. Prime offers coverage in all 50 states, which is unusual for a company that sells these policies.

Towing and reclaiming companies will need to get a quote from Prime to determine exactly how much they will have to pay. But Prime makes it clear that they don't have a minimum premium and don't just assign risk without having all the information they need to make a good decision. So businesses can be sure they will be treated fairly by Prime and won't be considered risky just because they work in a risky industry.

Tow Truck Insurance Requirements by State

States also have different rules about insurance for tow trucks. If a tow truck company only works in one state, it must follow the minimum coverage requirements set by that state, not the federal government.

When filing insurance, most states need a Form E, which shows that the liability insurance meets the state's minimum requirements. Some states will also need a Form H, which shows that the business has enough insurance for the cargo.

Since tow trucks are a subset of commercial trucks, towing companies must fill out state forms specific to tow trucks and other large commercial vehicles. Some states require tow trucks to file paperwork to ensure they have enough liability insurance.

Even when tow trucks don't need to file specific paperwork, some states require them to have more insurance than just basic liability coverage.

Local rules at the city or county level may require higher insurance limits, specific coverage, or more paperwork, so it's important to work with an insurance agent to ensure the business has enough coverage.

Based on information from the FMCSA, 17 states have specific rules about liability coverage for tow trucks.

States Filings Required Coverage / Minimums
Alabama ICC

MCS-90

BMC-34

Form E

Form H

OS/OW COI

SR-22
Property Motor Carriers ≥ 26,001 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $5,000 for household goods carriers
Alaska ICC

MCS-90

Form E

SR-22
Property Motor Carriers > 26,000 lbs

Bodily Injury and Property Damage Liability - minimum $700,000 CSL
Arizona ICC

MCS-90

BMC-34

Form E

SR-22
Property Motor Carriers ≥ 26,001 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Property Motor Carriers 21,000 - 26,000 lbs

Bodily Injury and Property Damage Liability - minimum $300,000 CSL
Arkansas ICC

MCS-90

BMC-34

Form E

Form H

OS/OW COI

SR-22
Property Motor Carriers of Any Weight

Bodily Injury and Property Damage Liability - minimum $130,000 CSL

Cargo - minimum $5,000 for household goods carriers
California ICC

MCS-90

BMC-34

MCP-65

California TL 672

California TL 676

California PL 914

California TL 1000

Form H

OL 207

SR-22
Property Motor Carriers ≤ 10,000 lbs

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Cargo - minimum $20,000 for household goods carriers

Property Motor Carriers > 10,000 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $20,000 for household goods carriers
Colorado ICC

MCS-90

BMC-34

Form E

Form H

General Liability (GL)

SR-22

Colorado Form 12

Colorado Form 14
Tow Trucks of Any Weight

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $10,000 for household goods carriers

On-Hook Towing - minimum $50,000

Garage Keepers Legal Liability - minimum $50,000
Connecticut ICC

MCS-90

MC1641B

R1325D

Form E

SR-22
Property Motor Carriers ≥ 18,001 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL
Delaware ICC

MCS-90
Property Motor Carriers ≥ 26,001 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL
Florida ICC

MCS-90

Form E

Form H

SR-22

FR44
Property Motor Carriers > 26,000 and < 35,000

Bodily Injury and Property Damage Liability - minimum $50,000 CSL

Cargo - $0.60 per pound for household goods carriers

Property Motor Carriers ≥ 35,000 and < 44,000

Bodily Injury and Property Damage Liability - minimum $100,000 CSL

Cargo - $0.60 per pound for household goods carriers

Property Motor Carriers ≥ 44,000

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Cargo - $0.60 per pound for household goods carriers
Georgia ICC

MCS-90

BMC-34

Form E

Form H

SR-22

SR-22A
Tow Trucks > 10,000 lbs

Bodily Injury Liability - minimum $100,000 for bodily injuries to death of one person and minimum $300,000 for bodily injuries to death of all injured persons

Property Damage Liability - minimum $50,000

Garage Keepers Legal Liability - minimum $50,000
Hawaii ICC

MCS-90

Form E

Form H

SR-22
Property Motor Carriers of Any Weight

Bodily Injury and Property Damage Liability - minimum $1,000,000 CSL

Cargo - minimum $1,500 per vehicle and $3,000 per incident for household goods carriers
Idaho ICC

MCS-90

BMC-34

Form E

Form H

SR-22
Tow Trucks of Any Weight

Bodily Injury and Property Damage Liability - minimum $750,000 CSL
Illinois ICC

MCS-90

BMC-34

Form E

Form H

SR-22
Property Motor Carriers < 10,000 lbs

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers

Property Motor Carriers ≥ 10,000 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers
Indiana ICC

MCS-90

BMC-34

MC-2401

Form E

Form H

SR-22

SR-50
Property Motor Carriers < 10,001 lbs

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers

Property Motor Carriers ≥ 10,001 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers
Iowa ICC

MCS-90

Form E

Form H

SR-22
Tow trucks ≥ 10,000 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $10,000 for household goods carriers
Kansas ICC

MCS-90

Form E

Form H

SR-22
Property Motor Carriers ≥ 10,001 lbs

Bodily Injury Liability - minimum $100,000 for bodily injuries to death of one person and minimum $300,000 for bodily injuries to death of all injured persons

Property Damage Liability - minimum $50,000

Cargo - minimum $3,000 for household goods carriers
Kentucky ICC

MCS-90

BMC-34

Form E

Form H
Tow trucks ≤ 18,000 lbs

Bodily Injury Liability - minimum $100,000 for bodily injuries to death of one person and minimum $300,000 for bodily injuries to death of all injured persons

Property Damage Liability - minimum $50,000

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers

Tow trucks > 18,000 lbs

Bodily Injury Liability - minimum $100,000 for bodily injuries to death of one person and minimum $600,000 for bodily injuries to death of all injured persons

Property Damage Liability - minimum $50,000

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers
Louisiana ICC

MCS-90

Form E

Form H

OS/OW COI

SR-22
Tow Trucks of Any Weight

Bodily Injury and Property Damage Liability - minimum $500,000 CSL

Cargo - minimum $50,000 per vehicle and $100,000 per incident for household goods carriers
Maine ICC

MCS-90

Form E

SR-22
Property Motor Carriers > 26,000 lbs

Bodily Injury and Property Damage Liability - minimum $350,000 CSL
Maryland ICC

MCS-90

Form H
Tow Trucks > 26,000 lbs

Bodily Injury Liability - minimum $100,000 for bodily injuries to death of one person and minimum $300,000 for bodily injuries to death of all injured persons

Property Damage Liability - minimum $100,000

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers
Massachusetts ICC

MCS-90

Form H
Property Motor Carriers of Any Weight

Bodily Injury Liability - minimum $20,000 for bodily injuries to death of one person and minimum $40,000 for bodily injuries to death of all injured persons

Property Damage Liability - minimum $1,000

Cargo - minimum $10,000 for household goods carriers
Michigan ICC

MCS-90

BMC-34

Form H

DES-017

SR-22
Tow Trucks of Any Weight

Bodily Injury and Property Damage Liability - minimum $1,000,000 CSL

Cargo - required for household goods carriers, but no limits are defined
Minnesota ICC

MCS-90

Form E

Form H

SR-22
Property Motor Carriers > 10,000 lbs

Bodily Injury Liability - minimum $100,000 for bodily injuries to death of one person and minimum $300,000 for bodily injuries to death of all injured persons

Property Damage Liability - minimum $50,000

Cargo - minimum $50,000 for household goods carriers
Mississippi ICC

MCS-90

Form E

Form H

OS/OW COI

SR-22
Property Motor Carriers ≥ 10,001 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $5,000 ≤ 6,000-lb vehicles and $10,000 > 6,000-lb vehicles for household goods carriers
Missouri ICC

MCS-90

BMC-34

Form E

Form H

SR-22
Property Motor Carriers > 6,000

Bodily Injury Liability - minimum $100,000 for bodily injuries to death of one person and minimum $300,000 for bodily injuries to death of all injured persons

Property Damage Liability - minimum $50,000

Cargo - minimum $2,500 per vehicle and $5,000 per incident for household goods carriers
Montana ICC

MCS-90

BMC-34

Form E

Form H

SR-22

HQMV-5
Tow Trucks > 10,000 lbs

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Cargo - minimum $20,000

Garage Keepers Legal Liability or On-Hook - minimum $50,000

Tow Trucks > 18,000 lbs

Bodily Injury and Property Damage Liability - minimum $500,000 CSL

Cargo - minimum $20,000

Garage Keepers Legal Liability or On-Hook - minimum $50,000

Tow Trucks > 32,000 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $20,000

Garage Keepers Legal Liability or On-Hook - minimum $50,000
Nebraska ICC

MCS-90

Form E

SR-22
Property Motor Carriers > 10,000

Bodily Injury and Property Damage Liability - minimum $750,000 CSL
Nevada ICC

MCS-90

BMC-34

Form E

Form H

SR-22
Property Motor Carriers ≥ 10,001 lbs to < 26,001 lbs

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Cargo - minimum $15,000 per vehicle and $30,000 per incident for household goods carriers

Property Motor Carriers ≥ 26,001 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $15,000 per vehicle and $30,000 per incident for household goods carrier
New Hampshire ICC

MCS-90

SR-22
Property Motor Carriers < 10,001 lbs

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Property Motor Carriers ≥ 10,001 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL
New Jersey ICC

MCS-90

BMC-34

Form E

Form H
Property Motor Carriers ≥ 26,001 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - $0.60 per pound for household goods carriers
New Mexico ICC

MCS-90
Tow Trucks of Any Weight

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Garage Keepers Legal Liability - minimum $50,000

On-Hook Towing - minimum $50,000
New York ICC

MCS-90
Property Motor Carriers ≥10,001 lbs

Bodily Injury Liability - minimum $100,000 for bodily injuries to death of one person and minimum $300,000 for bodily injuries to death of all injured persons

Property Damage Liability - minimum $50,000

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers
North Carolina ICC

MCS-90

BMC-34

Form E

Form H
Property Motor Carriers ≥ 10,001

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $35,000 per vehicle and $50,000 per incident for household goods carriers
North Dakota ICC

MCS-90

Form H

SR-22
Property Motor Carriers > 26,000

Bodily Injury and Property Damage Liability - minimum $750,000 CSL
Ohio ICC

MCS-90

BMC-34

Form E

Form H

OS-32

SR-22
Tow Trucks of Any Weight

Bodily Injury and Property Damage Liability - minimum $1,000,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers
Oklahoma ICC

MCS-90

Form E

Form H

OK FORM WA

SR-22
Property Motor Carriers < 10,001 lbs

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers

Property Motor Carriers ≥ 10,001 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers

Tow Trucks

Class G General or Class AA

Bodily Injury and Property Damage Liability - minimum $100,000 CSL

Garage Keepers Legal Liability - minimum $50,000

On-Hook or In-Tow - minimum $50,000

Bailee Coverage - minimum $2,500

Class AA-TM

Bodily Injury and Property Damage Liability - minimum $200,000 CSL

Garage Keepers Legal Liability - minimum $100,000

On-Hook or In-Tow - minimum $100,000

Bailee Coverage - minimum $2,500

Class AA-TL

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Garage Keepers Legal Liability - minimum $150,000

On-Hook or In-Tow - minimum $150,000

Bailee Coverage - minimum $2,500
Oregon ICC

MCS-90

BMC-34

Form E

Form H

SR-22
Property Motor Carriers > 26,000

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $50,000 for household goods carriers
Pennsylvania ICC

MCS-90

BMC-34

Form E

Form H

OS/OW COI or Escort/Pilot

SR-22
Property Motor Carriers ≤ 10,000 lbs

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Cargo - minimum $5,000 for household goods carriers

Property Motor Carriers > 10,000 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $5,000 for household goods carriers
Rhode Island ICC

MCS-90

Form E

Form H

GU1338C

SR-22
Tow Trucks of Any Weight

Bodily Injury Liability - minimum $250,000 for bodily injuries to death of one person and minimum $500,000 for bodily injuries to death of all injured persons

Property Damage Liability - minimum $25,000

Cargo - minimum $25,000 per vehicle and $25,000 per incident for household goods carriers
South Carolina ICC

MCS-90

Form E

Form H

SR-22
Property Motor Carriers Class A

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Cargo - minimum $75,000 for household goods carriers

Property Motor Carriers Class B

Bodily Injury and Property Damage Liability - minimum $500,000 CSL

Cargo - minimum $150,000 for household goods carriers

Property Motor Carriers Class C

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $250,000 for household goods carriers
South Dakota ICC

MCS-90

Form E

Form H

SR-22
Property Motor Carriers > 26,000 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers
Tennessee ICC

MCS-90

BMC-34

Form E

Form H

SR-22
Tow trucks: Class A and D

Bodily Injury and Property Damage Liability - minimum $500,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers

Garage Keepers Legal Liability - minimum $75,000

On-Hook Towing - minimum $75,000

Tow trucks: Class B

Bodily Injury and Property Damage Liability - minimum $1,000,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers

Garage Keepers Legal Liability - minimum $150,000

On-Hook Towing - minimum $150,000

Tow trucks: Class C

Bodily Injury and Property Damage Liability - minimum $1,000,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers

Garage Keepers Legal Liability - minimum $200,000

On-Hook Towing - minimum $200,000
Texas ICC

MCS-90

BMC-34

Form E

Form H

Form T

SR-22

SR-22A
Tow trucks > 26,000 lbs

Bodily Injury and Property Damage Liability - minimum $500,000 CSL

Cargo - minimum $5,000 per vehicle and $10,000 per incident for household goods carriers
Utah ICC

MCS-90

BMC-34

Form H

SR-22

SR-22A
Tow trucks ≥ 10,001

Bodily Injury and Property Damage Liability - minimum $750,000 for tow trucks performing emergency service
Vermont ICC

MCS-90

BMC-34

Form E

Form H

Form TA-VN-31

SR-22
Property Motor Carriers of Any Weight

Bodily Injury Liability - minimum $25,000 for bodily injuries to death of one person and minimum $50,000 for bodily injuries to death of all injured persons

Property Damage Liability - minimum $10,000
Virginia ICC

MCS-90

BMC-34

Form E

Form H

SR-22

FR-22
Tow Trucks of Any Weight

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $50,000 for household goods carriers
Washington ICC

MCS-90

BMC-34

Form E

Form H

SR-22

FR-22L
Property Motor Carriers < 10,000 lbs

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Cargo - minimum $10,000 for household goods carriers

Property Motor Carriers ≥ 10,000

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $20,000 for household goods carriers
West Virginia ICC

MCS-90

Form E

Form H
Property Motor Carriers of Any Weight

Bodily Injury and Property Damage Liability - minimum $700,000 CSL

Cargo - maximum: $20,000 < 10,000-lb vehicles and $100,000 ≥ 10,000-lb vehicles for household goods carriers
Wisconsin ICC

MCS-90

Form E

SR-22
Property Motor Carriers ≤ 10,000 lbs

Bodily Injury and Property Damage Liability - minimum $300,000 CSL

Cargo - required for household goods carriers, but no limits are defined

Property Motor Carriers > 10,000 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - required for household goods carriers, but no limits are defined
Wyoming ICC

MCS-90

Form E

Form H

SR-22
Tow trucks > 26,000 lbs

Bodily Injury and Property Damage Liability - minimum $750,000 CSL

Cargo - minimum $10,000 for household goods carriers

See what you could save on auto insurance

How to save money on Tow Truck insurance

Tow truck drivers will want to find the right balance between getting enough coverage and making a decision that is good for their budget.

Aside from taking advantage of insurance company discounts, there are many other ways for tow truck companies and drivers to save as much money as possible. Most of these ways involve making drivers safer or choosing a policy with less coverage.

In the same way that driver safety affects the cost of personal auto insurance, it also affects the cost of tow truck insurance. Therefore, during the hiring process, tow truck companies should pay close attention to applicants' driving records to see if they have ever been in an accident or gotten a ticket, which would cause their insurance costs to go up.

As part of the company's commitment to safety, spend money on frequent driver training and pre-trip vehicle inspections for the drivers you already have. Business owners may also want to put GPS devices on the tow trucks to monitor how fast the drivers are going. They may also want to make it against the rules to drive while distracted or on a cell phone.

Tow companies can also look into ways to get paid to save money. Depending on the insurance company, if you choose to "pay up front," you may pay less overall.

Since more coverage means higher premiums, business owners should only buy the coverage they need and not buy more than they need. If you only have a few tow trucks and don't do repossessions, you might be better off sticking with the minimum coverage limits required by law.

Also, getting quotes from different insurance companies is important so you can compare prices accurately. For businesses that need insurance to cover wrongful repossession, for example, the number of possible insurers may be small. But there are many more companies to compare prices and choose from for businesses that only need basic coverages.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com

FAQ

How much is tow truck insurance?

It's hard to give an exact cost for tow company insurance because rates depend on many things. The average cost of tow truck insurance per month for most towing businesses is $459, which is $5391 per year for a $1 million general liability coverage.

How much is tow truck insurance per month?

The average cost of tow truck insurance per month for most towing businesses is $459.

Does car insurance cover a tow truck?

Yes, even though you're not in the car, your insurance will still cover it while it's being towed. If the tow truck pulling your car is in an accident, the driver at fault's insurance will pay for any damage to your car, just like if you were in an accident while driving. And if you have collision coverage, you'll probably be covered if your car gets damaged while it's being towed.

How to get cheap tow truck insurance?

Tow truck drivers will want to find the right balance between getting enough coverage and making a decision that is good for their budget. Aside from taking advantage of insurance company discounts, there are many other ways for tow truck companies and drivers to save as much money as possible.

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