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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 |
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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.
