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Running a tow truck business has its risks and liabilities. You typically have to haul heavy equipment from its original pick-up location – an accident scene, a mechanic’s garage, or residential property – to another location.
Tow truck insurance protects your business from claims and property damage while towing. Also, tow truck business insurance protects your towing business financially and creates excellent business trust among your clients, especially when you’re a startup towing service provider.
The general notion is that only businesses primarily involved in towing disabled vehicles require liability insurance for tow trucks. Other businesses and operations that require tow truck liability insurance include:
Towing businesses are not the same. Some only tow dump trucks, skid steers, tractors, or excavators. And so, there’s no one-size-fits-all tow insurance coverage.
Coverage of Tailored Insurance for Tow Trucks
It’s essential to ensure that your business is well covered if a towing job goes awry. The following are tow truck coverages you need to include in your policy.
For most towing businesses, the average tow truck insurance cost per month is $448, which translates to $5,376 per year for a $1 million general liability coverage.
As we’ve mentioned, several factors influence insurance rates. As listed them below:
In addition, you can use this table as a reference to get an idea about the pricing of the best wrecker insurance companies:
| Cost per Month | Cost per Year | ||
| CoverWallet | $440 | $5,280 | |
| Thimble | $450 | $5,400 | |
| State Farm | $465.89 | $5,590.68 | |
| Geico | $472.38 | $5,668.56 | |
| USAA | $485 | $5,820 | |
| Allstate | $487 | $5,844 | |
| Progressive | $490 | $5,880 | |
| Nationwide | $505 | $6,060 | |
| Liberty Mutual | $507.13 | $6,085.56 | |
| Farmers | $511 | $6,132 |
Insuring a recovery truck will cost the owner $413 a month or $4,956 a year for a $1 million liability coverage. Factors that affect premiums are driving history, location, mileage, age of the recovery truck, the driver’s age, and more.
Rollback truck insurance costs $478 a month or $5,736 a year for a $1 million liability coverage. Factors that affect pricing are the year make and model of the rollback truck, deductibles, policy limits, and more.
To insure tilt tray trucks, owners spend $430 a month or $5,160 a year for a $1 million liability coverage. Premiums are determined by factors such as location, policy limits, tilt tray truck year and make, and more.
CoverWallet’s tailored insurance for tow trucks includes commercial auto, physical damage, personal injury, hired or non-owned auto, and uninsured/underinsured motorist coverages.
Average cost: $440 per month
Thimble offers tailored towing insurance that includes short-term general liability coverage. This company also allows towing businesses to add business equipment and commercial auto coverage.
Average cost: $450 per month
Our rating: 9/10
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State Farm provides reliable commercial towing insurance with coverage for break-down roadside assistance. State Farm’s emergency roadside service insurance covers a range of risks and liabilities, including:
Average cost: $465.89 per month
Their packages offer protection for third-party liability, medical payments insurance, and uninsured/underinsured motorists.
Furthermore, progressive provides On-Hook insurance to cover the vehicle you’re towing. There’s also Garage Keepers Legal Liability, which covers the disabled vehicle stored in your garage.
Best for: High-risk tow truck owners
Average cost: $490 per month
The company provides convenient access to emergency road assistance coverage included in its semi-truck towing insurance. Geico’s road service insurance offers coverage for emergencies, including towing to the nearest car maintenance/repair center, tire changes, locksmith services up to $100
Average cost: $472.38 per month
The company offers you the right protection for any third-party liability or physical damages that may involve personal cars, buses, trailers, luxury cars, and trucks. USAA also provides roadside assistance coverage,
Average cost: $485 per month
Allstate ranks among the top insurance providers for tow truck coverage. Allstate wrecker insurance offers a range of coverage policies, including liability coverage , collision coverage, and comprehensive coverage,
Average cost: $487 per month
Nationwide tow truck coverage protects you against liabilities , collision coverage, comprehensive insurance, medical payment coverage, and uninsured/underinsured motorist policy.
Average cost: $505 per month
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Liberty Mutual
Liberty Mutual is an insurance company that provides client-focused commercial auto and fleet insurance, including wrecker insurance.
With Liberty Mutual, commercial tow truck insurance buyers can add the “Liberty Mutual Deductible Fund” to their policies, enabling them to lower their deductibles annually to save on insurance.
Average cost: $507.13 per month
Our rating: 6/10
Additionally, Farmers offers towing and roadside assistance coverage. All you need is to offer information about your emergency by filling out an online form, and the company will dispatch a qualified professional to offer mechanical help.
Best for: Towing contractors
Average cost: $511 per month
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