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Tow Truck Insurance in California: Cost & Quotes From $40/mo

Table of contents
1. Tow Truck Insurance in California2. Tow Truck Insurance Requirements in California3. General Liability Insurance for Tow Trucks in California3.1. How Much Coverage Can You Get from General Liability Insurance?3.2. In What Situations Can You Use General Liability Insurance?3.3. Does General Liability Insurance Affect My Profit Margin?4. Professional Liability Insurance for Tow Trucks in California4.1. In What Situations Can  You Use Professional Liability Insurance for Tow Trucks in California?5. Tools and Equipment Insurance for Tow Trucking in California 6. Commercial Property Insurance for Tow Truck Businesses in California6.1. In What Situations Can Your Tow Trucking Business in California Use Commercial Property Insurance?7. Business Owner’s Policy for Tow Truck Businesses in California8. Commercial Auto Insurance for Tow Trucks in California8.1. Auto Liability8.2. Medical Payments8.3. Comprehensive coverage8.4. Collision coverage8.5. Roadside Assistance8.6. Uninsured/Underinsured Motorist Coverage9. California Tow Truck Owner’s Garage Keeper’s Liability Insurance9.1. What is the Difference Between Garage Liability and Garage Keeper’s Liability?10. On-Hook Towing Insurance for Tow Trucking in California 10.1. What is the Difference Between On-Hook Coverage and Cargo Coverage?11. California Tow Truck Insurance Cost12. Best Companies for California Tow Truck Insurance12.1. NEXT California Tow Truck Insurance 12.1.1. Pros12.1.2. Cons12.2. The Hartford California Tow Truck Insurance 12.2.1. Pros:12.2.2. Cons12.3. CoverWallet California Tow Truck Insurance 12.3.1. Pros12.3.2. Cons12.4. Tivly California Tow Truck Insurance 12.4.1. Pros12.4.2. Cons12.5. Thimble California Tow Truck Insurance 12.5.1. Pros 12.5.2. Cons 12.6. Hiscox California Tow Truck Insurance 12.6.1. Pros12.6.2. Cons

Traffic accidents in California are becoming more deadly. In 2022, 312 people were killed in car crashes, according to the Los Angeles Times. This is the highest rate of deaths in the past 20 years.

The danger of severe accidents is prevalent in the tow truck business as well. In this era of accidents for tow truck businesses, finding a good tow truck insurance policy can help keep your workers safe and reduce their liabilities.

In this article, we will look at the answers to common questions and thoughts people have about California tow truck insurance, including:

  • Definition of tow truck insurance

  • What policies are included

  • How much premiums cost

  • The best companies for California tow truck insurance

Tow Truck Insurance in California

Commercial tow truck insurance policies in California include several options catering to the unique challenges of driving a tow truck. These insurance packages consist of:

  • Commercial auto insurance

  • General liability insurance

  • Professional liability insurance

  • Garage keeper's liability insurance

  • Tools and equipment insurance

  • On-Hook Towing Insurance

  • Commercial property insurance

  • Business owner's policy


These insurance policy options will be explained further in their own sections. They are each important to keeping your trucks running and avoiding expensive pitfalls that risks might bring.



Tow Truck Insurance Requirements in California

Tow Trucks require a commercial auto insurance policy with limits that reach a minimum coverage. This coverage varies depending on the situation.

Per PersonBodily Injury per AccidentProperty Damage
Minimum $15,000Minimum $30,000Minimum $5,000


While these are the minimum requirements set forth by the California DMV, it is a good idea to try to get the best limits possible. Tow trucks carry a higher inherent risk than other types


General Liability Insurance for Tow Trucks in California


CoverWallet NEXT (Best)Thimble HiscoxThe Hartford
Per occurrence limit $1,000,000$1,000,000$1,000,000/$2,000,000$300,000/$1,000,000$1,000,000/$2,000,000
Aggregate limit $2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$300,000/$2,000,000$1,000,000/$2,000,000
Products and completed operations aggregate limit $2,000,000
$1,000,000$1,000,000$1,000,000$1,000,000
Advertising injury coverage aggregate limit $1,000,000$1,000,000$1,000,000$1,000,000$1,000,000
Tenant’s legal liability coverage limit $100,000
$100,000$5,000$100,000$1,000,000
Waiver of subrogation included?YesNoIncludedCan be includedNo
Hired/non-owned auto liability coverage included?YesNoExcludedCan be includedCan be included
Equipment breakdown floater included?No YesYesCan be includedCan be included


General liability insurance is an essential component of California tow truck insurance. This policy covers damage to customer property, body injuries, and personal injury claims by third parties. It is sometimes required to get a lease or contract. Use the table above to see which insurance company offers the best general liability insurance for tow trucks in California. 


How Much Coverage Can You Get from General Liability Insurance?

The common amount of coverage for general liability insurance is around $1 million-$2 million. You can use this to pay for the claimant’s medical expenses and financial losses. The policy is also designed to cover your attorney fees, investigation fees, and other legal expenses. 


In What Situations Can You Use General Liability Insurance?

Example situations where this insurance would apply include:

  • Your tow truck’s brake gets faulty and causes the vehicle to smash on parked cars 

  • If a tow truck damages customer property, like when loading or unloading their car

  • Your tow truck crashes on a building by accident 


Does General Liability Insurance Affect My Profit Margin?

While the cost of insuring your trucks will dig into your potential profits, you will actually be saving money with the right policy. Tow truck companies usually see around a 70% profit margin after purchasing general liability and other types of business insurance. 


Professional Liability Insurance for Tow Trucks in California


CoverWallet (Best)NEXT Thimble HiscoxThe Hartford
Per occurrence limit $1,000,000$1,000,000$1,000,000/$2,000,000$1,000,000$1,000,000
Aggregate limit $2,000,000$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$2,000,000
Name additional insureds?YesYesYesYesYes
Waiver of subrogation included?YesNoYesYesNo
Deductible $500$500$500$500$500


Professional liability policies cover any errors or omissions that your tow truck drivers make during their job. Perils covered under this policy are negligence, failure to transport a load in good condition, overcharging for one’s services, and misleading advertisement.  Limits on professional liability insurance will vary between $250,000 and $2 million. Use the table above to see which insurance company offers the best professional liability insurance for tow trucks. 


In What Situations Can  You Use Professional Liability Insurance for Tow Trucks in California?

Here are some of the situations where this insurance can help your tow trucking business in California:

  • If your worker is unable to show up to a call, you might need to cover expenses if the client decides to sue you

  • A tow truck driver delivers a car to the wrong address, opening you to liabilities

  • A booking mistake costs a client lost time and causes them to be injured. Professional liability may help cover the costs related to this

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Tools and Equipment Insurance for Tow Trucking in California


NEXT ThimbleHiscox
Aggregate limit$3,000/$10,000$2,500/$5,000$15,000/$25,000
Covers hired and borrowed equipment?$3,000/$10,000$2,500/$5,000No
Miscellaneous equipment also covered?$5,000/$10,000NoYes
Offered as an endorsement to general liability insurance?YesYesYes
Deductible$500$500$0

Tools and equipment insurance is an insurance policy that covers possible damages or theft of tow trucking tools and equipment as caused by fire, theft, vandalism, lightning, and other covered perils. Some situations where you might use this coverage include:

  • If a tow truck driver’s air pump is damaged or stolen, this policy could help cover the costs of replacing it

  • If your tow truck’s wench is damaged by lightning, this can cover the cost of replacement and installation


Coverage limits for tools and equipment are usually covered for any movable item that is under $10,000. It can also replace the cost of borrowed gear if you loan out a piece of equipment. Use the table above to see which insurance company offers the best tools and equipment insurance for tow trucks in California. 


Commercial Property Insurance for Tow Truck Businesses in California


CoverWalletNEXT (Best)ThimbleThe HartfordHiscox
Building coverage limit (minimum)$50,000$320,000$25,000/$500,000$35,000$25,000
Contents coverage limit (minimum)$50,000$35,000$25,000/$500,000$35,000$15,000
Outdoor signsExcluded$2,500ExcludedExcludedIncluded
Accounts receivable ExcludedExcluded$5,000/$10,000ExcludedIncluded
Money and securitiesExcluded$2,500$1,000ExcludedIncluded
Lock and keys Excluded$2,500ExcludedExcludedIncluded
Business interruption floaterExcludedIncludedIncludedExcludedIncluded
Equipment breakdown floaterExcludedIncludedExcludedExcludedIncluded
Inland marine insurance floaterExcludedExcluded$10,000ExcludedExcluded
Employee dishonesty floaterExcluded$5,000$2,500ExcludedExcluded


Commercial property insurance protects your business inventory, goods, gear, and buildings. Perils covered are fire, theft, vandalism, lightning, sinkhole collapse, sprinkler leakage, riot, and volcanic action. 

Policy limits for commercial property insurance will depend on how much you are willing to pay. Typically you might see a  hundred thousand dollars in coverage limits for a decent-sized policy. Use the table above to see which insurance company offers the best commercial property insurance for tow trucks in California. 


In What Situations Can Your Tow Trucking Business in California Use Commercial Property Insurance?

You can use this coverage when:

  • Your building catches on fire, damaging your vehicle bay. Commercial property insurance would help cover necessary repairs to get your vehicle bay back in working order

  • Someone breaks into your commercial building and causes damage to your towing equipment

  • Your tow trucking business’s air condition busted. Commercial property insurance can be used to cover its replacement


Business Owner’s Policy for Tow Truck Businesses in California


CoverWalletNEXT (Best)Thimble The HartfordHiscox
General liability aggregate limit $2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000$300,000/$2,000,000
Commercial property coverage limit $50,000$320,000$25,000/$500,000$35,000$25,000
Optional policies can be added?YesYesYesYesYes
Name additional insureds for free?YesYesYesYesYes
BOP discount?YesYesYesYesYes


Business owner’s policy combines commercial property insurance and general liability coverage into one. This allows you to get the best of both worlds. Business owner’s policy insurance is good for small to mid-sized tow truck businesses, while a higher-risk company may need separate policies. Examples of when you can use this policy include:

  • If debris falls onto your tow truck while it is in a garage, the business owner’s policy will help cover the damages

  • Your tow truck causes some injuries during a loading operation. Business owner’s policy can cover the victim’s medical expenses

  • Your tow truck business’s office is damaged during a storm. Business owner’s policy can cover the cost of repairing the windows, roof, or any other structure


Because a business owner’s policy has several different policy options and add-ons available, the coverage options may vary widely. It can be as low as $300,000 or as high as $4 million. Use the table above to see which insurance company offers the best business owner’s policy for tow trucks in California. 


Commercial Auto Insurance for Tow Trucks in California

Commercial auto insurance will include coverage for things like medical bills and property damage during a toW truck accident. It will also cover physical damage to your vehicle. The components of commercial auto insurance for tow trucks are listed below.


Auto Liability

Auto liability covers damages that your tow trucks cause to others' bodies and their property. Tow truck insurance in California uses auto liability coverage to ensure that tow trucking businesses meet their responsibility for accidents involving the public.


Medical Payments

Any medical expenses that you or your passengers incur while riding the tow truck. This can include things like getting into an accident that injures your driver, customers, or both.


Comprehensive coverage

Comprehensive covers the cost to repair or replace your vehicle for practically anything but a collision. This includes things like falling rocks, fires, and vandalism. This coverage is optional in California based on California Department of Insurance guidelines.


Collision coverage

Collision refers to any damage your vehicle sustains in an accident that needs to be covered. A collision insurance policy would help pay to repair costs that result from a collision with another non-stationary vehicle.


Roadside Assistance

Roadside assistance covers the costs to schedule and pay for assistance if your tow truck becomes stranded on the roadways. This can be an invaluable option for helping get your tow trucks up and running quickly after an unfortunate breakdown.


Uninsured/Underinsured Motorist Coverage

If you get into an accident with a motorist who does not have insurance or lacks enough to pay for the damages, this insurance kicks in to help cover the gap.


California Tow Truck Owner’s Garage Keeper’s Liability Insurance

Garage keepers liability offers coverage for when a tow truck owner keeps customer vehicles at a business location for storage, repairs, or another business-related function. This insurance option protects against things like vandalism, theft, storms, and fire. The coverage limits will vary depending on your policy. However, it typically maxes out at $2,500 per occurrence.


What is the Difference Between Garage Liability and Garage Keeper’s Liability?

Garage liability insurance protects business property from liability that occurs during normal garage operations. It includes costs from bodily injury or property damage. 

Garage keeper’s liability insurance covers customer vehicles that are in the process of being stored or repaired. Garage keeper’s insurance is an add-on policy that tow truck owners will want since they will have customer vehicles parked in their shop or garage.


On-Hook Towing Insurance for Tow Trucking in California 

On-hook towing insurance covers just what it sounds like. If a vehicle you don’t own is damaged during the ordinary course of business, it will help repair or replace that vehicle. Situations where this policy can be used, are listed below.

  • A customer’s vehicle is damaged in an on-road collision while in your care. On-hook towing insurance can help you not have to pay to repair or replace it out of pocket

  • While you are loading a customer’s vehicle, it gets caught in a fire and is severely damaged


Typical policy limits for on-hook towing are $15,000. You will often see around a $500 deductible for this policy limit, but it will vary by policy.


What is the Difference Between On-Hook Coverage and Cargo Coverage?

On-hook coverage covers loaded vehicles into a tow truck. On the other, hand cargo insurance covers anything from loaded cargo to personal items carried through a tow truck. Cargo insurance is comprehensive. 

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California Tow Truck Insurance Cost


Cost per MonthCost per YearDeductible
General liability insurance$148$1,776$0-$500
Professional liability insurance$151$1,812$500-$1,000
Commercial property insurance$170$2,040$1,000-$2,000
Business owner's policy$310$3,720$1,500
Tools and equipment insurance$158$1,896$500-$1,000
Oh-hook towing insurance$350$4,200$500-$1,000
Garage keeper’s liability insurance$159$1,908$500-$1,000
Commercial auto insurance$200$2,400$500-$1,000


California tow truck insurance is $148 per month or $1,776 per year for a $1 million general liability coverage. Factors that might affect your actual rates are location, business history, claims history, revenue, location, and number of employees. Here’s a table showing the rates of the recommended carriers:


Cost per MonthCost per MonthBest For
NEXT$40$480Best overall; Fastest general liability insurance for tow trucking businesses in California
CoverWallet$49$588Comparing California tow truck insurance quotes online
The Hartford$60$720Coverage for high-risk tow trucking businesses
Thimble$70$840Short-term tow trucking insurance
Tivly$80$960Comparing California tow truck insurance quotes over the phone
Hiscox$89$1,068Risk protection

Compare California Tow Truck Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Companies for California Tow Truck Insurance

Tow truck insurance in California is loaded with different insurance companies, all vying for your business. To help you sort through the right insurance policy for you, we have reviewed each of the best companies below. Read to know their pros, cons, and rate for a $1 million general liability insurance. 


NEXT California Tow Truck Insurance

Pros

  • Best overall

  • Issues an online proof of insurance instantly

  • Fastest general liability insurance

  • Great customer service and reputation

  • Excellent rates

  • Outstanding value for money

  • Get a 10% discount if you buy two or more policies 

Cons

  • Couldn’t find any

NEXT Insurance is a bit newer on the scene, having only been founded in 2016, but they offer a competitive policy offering for tow truck insurance. They are also headquartered in California, giving them an edge in the market there.

They have commercial auto, general liability, professional liability, tools & equipment, and business policy options for your tow truck business. They are lacking some of the finer policies like on-hook coverage and garage holder liability.

Best for: Best overall; Fastest general liability insurance for tow trucking businesses in California

Average cost: $40 per month 

Our rating: 10/10


The Hartford California Tow Truck Insurance

Pros:

  • Lots of options

  • Small business focus

  • Great resource list

Cons

  • Accident forgiveness has to be earned

The Hartford is an insurance industry leader that was founded in 1810. They have an A+ rating from AM Best and claim to serve over one million small businesses.

They offer some of the best options for tow truck owners. They have bodily injury, property damage, collision coverage, comprehensive coverage, medical payments, rental car, business owner’s policy, professional liability, and general liability insurance options. On top of this, they offer deeper customization that will work with your specific business needs for more policy options.

Best for: Coverage for high-risk tow trucking businesses

Average cost: $60 per month 

Our rating: 10/10


CoverWallet California Tow Truck Insurance

Pros

  • Variety of coverage through partners

  • Online dashboard to track everything

  • East to generate quotes

Cons

  • Need to call to get a quote

CoverWallet is a digital marketplace where you can compare different tow truck insurance quotes between top insurance providers. They have an A+ rating from the Better Business Bureau.

The advantage of choosing CoverWallet is getting a quote in minutes for various policy options. This is further helped by their 24/7 policy experts, that can help you choose the right policy.

Best for: Comparing California tow truck insurance quotes online 

Average cost: $49 per month 

Our rating: 10/10


Tivly California Tow Truck Insurance

Pros

  • Helps connect customers with insurers

  • Quotes are easy and quick

  • Lots of partners to choose from

Cons

  • Doesn’t write policies

Another excellent option for California tow truck owners is Tivly. They are an insurance platform with over 200 partners that allows you to compare their most competitive quotes. You can get quotes quickly to get on your way to a certificate of insurance. Call a representative now to compare quotes over the phone. 

They have a good selection of options, including professional liability, general liability, commercial property, commercial auto, and business owner’s policy. They also have business insurance specifically geared toward California.

Best for: Comparing California tow truck insurance quotes over the phone 

Average cost: $80 per month 

Our rating: 10/10


Thimble California Tow Truck Insurance

Pros 

  • Knowledgeable team

  • Highly reviewed

  • Detailed online resources make picking coverage easier

Cons 

  • Online-only support

Thimble is a notable insurance seller for their high customer reviews and A rating from AM Best. They are highly experienced and offer policies for 300 professions. 75% of their customers are first-time buyers.

Tow truck policyholders will be excited to find and offer a variety of policies like general liability, collision, and comprehensive that can be further customized with state-specific coverages that will automatically make you compliant with California law.

Best for: Short-term tow trucking insurance

Average cost: $70 per month

Our rating: 10/10


Hiscox California Tow Truck Insurance

Pros

  • 14-day refund policy

  • Works with you to reduce risk

  • Bundle discounts for multiple products

Cons

  • Their business owner’s policy is heavily geared toward small businesses to the detriment of other businesses.

Hiscox has many options that are crucial to a good tow truck insurance policy. They have tailored insurance with options like commercial auto, business owners, professional liability, general liability, and many more.

They are trustworthy insurance purveyors, having been around since 1901 and having an A ranking from AM Best. They serve over 500,00 customers per year and are an international insurance group.

Best for: Risk protection

Average cost: $89 per month 

Our rating: 10/10


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