Tow Truck Insurance in California: Cost & Quotes

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Updated: March 27, 2025 . 8 min read

Written by Ofir Sahar

CEO & Founder

Ofir Sahar

CEO & Founder

Some of the products on this page come from partners who may compensate us when you click on their links or take specific actions. This helps us keep our content free. That said, our opinions are our own and based on independent analysis.

 

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.

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.

This article features,California tow truck insurance, its cost, policies and the best companies offering the policy.

 

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 Person Bodily Injury per Accident Property Damage
Minimum $15,000 Minimum $30,000 Minimum $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

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. 

The common amount of coverage for general liability insurance is around $1 million-$2 million. 

 

CoverWallet  NEXT (Best) Thimble  Hiscox The 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? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No Excluded Can be included Can be included
Equipment breakdown floater included? No  Yes Yes Can be included Can be included

 

Professional Liability Insurance for Tow Trucks in California

Professional liability policies cover any errors or omissions that your tow truck drivers make during their job.

 Risks 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. 

CoverWallet (Best) NEXT  Thimble  Hiscox The 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? Yes Yes Yes Yes Yes
Waiver of subrogation included? Yes No Yes Yes No
Deductible  $500 $500 $500 $500 $500

 

Tools and Equipment Insurance for Tow Trucking in California

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. 

Coverage limits for tools and equipment are usually covered for any movable item that is under $10,000.

NEXT  Thimble Hiscox
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/$5,000 No
Miscellaneous equipment also covered? $5,000/$10,000 No Yes
Offered as an endorsement to general liability insurance? Yes Yes Yes
Deductible $500 $500 $0

Compare California Tow Truck Insurance Quotes Online

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Commercial Property Insurance for Tow Truck Businesses in California

Commercial property insurance protects your business inventory, goods, gear, and buildings. risks 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. 

CoverWallet NEXT (Best) Thimble The Hartford Hiscox
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 signs Excluded $2,500 Excluded Excluded Included
Accounts receivable  Excluded Excluded $5,000/$10,000 Excluded Included
Money and securities Excluded $2,500 $1,000 Excluded Included
Lock and keys  Excluded $2,500 Excluded Excluded Included
Business interruption floater Excluded Included Included Excluded Included
Equipment breakdown floater Excluded Included Excluded Excluded Included
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Excluded Excluded

 

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.

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California Tow Truck Insurance Cost

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.

Cost per Month Cost per Year Deductible
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

 

Best Companies for California Tow Truck Insurance

NEXT 

NEXT 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.

Average cost: $40 per month 

Our rating: 10/10

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

 

The Hartford

The Hartford 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.They have an A+ rating from AM Best

Average cost: $60 per month 

Our rating: 10/10

Pros:

  • Lots of options
  • Small business focus
  • Great resource list

Cons

  • Accident forgiveness has to be earned

 

Compare California Tow Truck Insurance Quotes Online

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

CoverWallet

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.

Average cost: $49 per month 

Our rating: 10/10

Pros

  • Variety of coverage through partners
  • Online dashboard to track everything
  • East to generate quotes

Cons

  • Need to call to get a quote

 

Tivly®

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.

They have a good selection of options, including professional liability, general liability, commercial property, commercial auto, and business owner’s policy. 

Average cost: $80 per month 

Our rating: 10/10

Pros

  • Helps connect customers with insurers
  • Quotes are easy and quick
  • Lots of partners to choose from

Cons

  • Doesn’t write policies

 

Thimble

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.

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.

Average cost: $70 per month

Our rating: 10/10

Pros 

  • Knowledgeable team
  • Highly reviewed
  • Detailed online resources make picking coverage easier

Cons 

  • Online-only support

 

Hiscox

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 have A ranking from AM Best.

Average cost: $89 per month 

Our rating: 10/10

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.

 

About the author

Ofir Sahar

Ofir is the founder and CEO of Insuranks. He established Insuranks in 2019 from scratch and has been running educational insurance websites since 2009 on a mission to help businesses...See full bio.

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