Tow Truck Insurance: Cost & Quotes From $11

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. In the process, you share the road with other motorists. Sometimes, you have to pull vehicles such as box trucks or cargo vans under extreme weather. 

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

Coverage might be required before conducting your tow trucking business. For example, a tow truck business in California needs to comply with commercial auto coverage requirements before hitting the road. To secure contracts, then getting general liability insurance is a must. Here’s a guide that will talk about the specifics of tow truck insurance, from what’s included to the best companies.

What is Tow Truck Insurance?

Tow truck insurance, also known wrecker insurance, is a type of commercial truck insurance coverage that provides coverage to your towing vehicles and provides protection against damage resulting from collision, fire, theft, or vandalism. A tow truck insurance policy also protects towing businesses against liabilities (third-party bodily injuries and property damages), medical bills, and uninsured/underinsured motorists. 


Besides tow truck business insurance, towing companies also need other non-tow-truck-related insurance policies, such as general liability insurance, commercial property insurance, and workers’ compensation as well as bobtail insurance. If you live in an area that experiences frequent natural disasters or catastrophic events, it would be best to add business hazard insurance coverage to your policy. 

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Tow Truck Liability Insurance: Who Needs it?

The general notion is that only businesses primarily involved in towing disabled vehicles require liability insurance for tow trucks. Some other businesses that can enjoy it include rendering roadside assistance solutions or sheltering the wrecked vehicles in owned or rented parking facilities.


Other businesses and operations that require tow truck liability insurance include:

  • Auto club contractors

  • Auto mechanical repair shops

  • Rotational towing

  • Full-service car maintenance stations

  • Car salvage and auction haulers

  • Auto body shops

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. Your business faces unique risks. Therefore, it’s critical to communicate your needs and details to your insurance agent clearly, so that they tailor your tow truck liability insurance policy.


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.

  • Liability insurance – Tow truck liability insurance covers any injuries or damages caused to other people’s property. It caters to any third-party bodily injuries, as well as repair or replacement costs of the damaged property. 

  • Medical insurance – This insurance policy covers any medical expenses you and any other person in your car incur for treating the injuries sustained following a crash.

  • Physical damage insurance – This tow vehicle insurance shoulders the repair costs for your vehicle if it’s damaged by an accident,  fallen tree branch, theft, vandalism, or lightning.

  • Uninsured/underinsured motorist coverage – Sometimes, you may sustain injuries in an accident caused by an uninsured or underinsured motorist. Other times it’s a hit-and-run. This policy will cover the injuries and related treatment costs in such cases. 

  • Non-trucking liability insurance – Non-trucking liability insurance provides coverage for accidents a tow truck caused while it’s not being used for commercial purposes. Another related policy available for tow trucks is unladen insurance

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Tow Truck Insurance Cost

It’s challenging to give an exact figure for the cost of tow company insurance because many factors affect insurance rates. 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. 


Some cost-saving practices help you mitigate wrecker insurance cost and includes:

  • Paying your yearly premium in full 

  • Bundling your insurance coverage with your personal car insurance

  • Choosing a higher deductible

  • Using fleet insurance to cover multiple tow trucks

  • Maintaining a clean driving record

  • Having a high deductible

  • Employing risk management techniques such as the signing of hold harmless agreements

As we’ve mentioned, several factors influence insurance rates. We’ve listed them below:

  • Driving history

  • Location 

  • Hours of operation

  • The number of tow trucks you own

  • Driver qualification documents (mandatory for state and federal safety compliance)

  • The type of vehicles you tow

  • Safety program (critical in getting affordable wrecker insurance rates)

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 Best for
CoverWallet $440 $5,280 Tow truck insurance quotes comparison online
Thimble $450 $5,400 Insurance for tow trucks with short-term general liability coverage
State Farm $465.89 $5,590.68 Towing companies offering emergency roadside assistance
Geico $472.38 $5,668.56 Tow truck fleet insurance
USAA $485 $5,820 Military service members running tow truck businesses
Allstate $487 $5,844 Tow truck businesses looking for easy access to customer service online
Progressive $490 $5,880 High-risk tow truck owners
Nationwide $505 $6,060 Towing companies looking for insurance backed by high customer care
Liberty Mutual $507.13 $6,085.56 Towing businesses looking to increase their insurance savings every year
Farmers $511 $6,132 Towing contractors
American Family $521 $6,252 Tow truck companies looking for quality online customer support
Fred Loya $527 $6,324 Insurance for tow trucks for businesses in Las Vegas, Los Angeles, and San Antonio


Recovery Truck Insurance Cost

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 Cost 

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.

Tilt Tray Insurance Cost

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. 

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Best Tow Truck Insurance Companies

The insurance industry is filled with many carriers for tow truck coverage, and finding a carrier for your insurance policy is easy. Nonetheless, you need to filter the choices. Go for a carrier that can adjust the insurance plans to satisfy your coverage needs. If you’re ready to purchase tow vehicle insurance, here are the best companies. Read to know their pros, cons, and pricing for a $1 million general liability coverage. 


CoverWallet Tow Truck Insurance


  • Has an online quotes comparison platform for you to find the best coverage

  • No cancellation fees

  • Cancel a policy anytime and get refunds

  • Pay premiums and get proof of insurance online


  • Doesn’t cover high-risk tow trucking businesses 

CoverWallet’s tailored insurance for tow trucks includes commercial auto, physical damage, personal injury, hired or non-owned auto, and uninsured/underinsured motorist coverages. Work with CoverWallet because you can cancel your policy anytime without any fees. Furthermore, the company, with its website and mobile app,  allows you to pay insurance and get proof of insurance online. 

Best for: Wrecker insurance quotes comparison online

Average cost: $440  per month

Our rating: 10/10

Thimble Wrecker Insurance


  • Has a business insurance calculator so that you can estimate the cost of premiums

  • Includes short-term general liability insurance in its wrecker insurance


  • Claims can only be filed online

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. Just like CoverWallet, Thimble allows you to buy a policy, pay for premiums, and get proof of insurance online. 

Best for: Wrecker insurance with short-term general liability coverage

Average cost: $450  per month

Our rating: 9/10

State Farm Wrecker Insurance


  • 24/7 emergency roadside service coverage

  • Provides discounted insurance rates 

  • Better-than-average customer satisfaction rating


  • Limited coverage to businesses not providing roadside assistance


Have you experienced a flat tire or require towing from an accident scene? State Farm provides reliable commercial towing insurance with coverage for break-down roadside assistance. When you request the service, a service provider will be deployed to help fetch your tow truck or have it running once again. 


State Farm’s emergency roadside service insurance covers a range of risks and liabilities, including mechanical labor costs (up to an hour), towing disabled vehicles to the nearest repair station, cost of items (gas, tire change, or battery) required to bring a wrecked vehicle to a drivable condition, and locksmith labor to unlock the covered tow truck. 


Best for: Towing companies offering emergency roadside assistance

Average cost: $465.89  per month

Our rating: 9/10

Geico Tow Truck Insurance


  • Online claims management 

  • High-level customer care

  • Insurance available in 50 states

  • Solid financial strength rating from AM Best


  • Average quotes process

  • Geico insurance app not available in all states

If you’re looking for a carrier that offers help when the tow truck acts up, G eico  is the best insurance provider for your towing business. The company provides convenient access to emergency road assistance coverage included in its semi-truck towing insurance, and clients can request help via the Geico mobile app.


An upside to using Geico’s app is that you can request assistance in two minutes, assistance solutions are available 24/7, a service tracker (to track when help is on the way), and a GPS locator that enables the company to pinpoint your exact location.


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), battery jump starts, and gas deliveries. 


Best for: Tow truck fleet insurance

Average cost: $472.38  per month

Our rating: 8/10


USAA Tow Truck Insurance


  • Cheap rates and many discounts

  • Excellent choice for military service members

  • Available nationwide

  • High AM Best financial stability rating


  • Only available to military personnel and their families

If you’re a military serviceman or veteran operating a tow truck business, look no further than USAA when looking for commercial vehicle insurance. The company offers you the right protection for any third-party liability or physical damages that may involve personal cars, buses, trailers, luxury cars, trucks, etc. 


Established in 1922, the company has extensive experience in the insurance world. It works with professional, independent insurance agents who can help you assess any unique risks for your business and tailor the plan to your specific needs. 


USAA also provides roadside assistance coverage, which typically covers flat tires, fuel deliveries, vehicle deliveries to the nearest repair shop, battery jumpstarts, towing your disabled tow truck, and unlocking the vehicle when your key is lost or locked inside the car. 


Best for: Military service members running tow truck businesses

Average cost: $485  per month

Our rating: 6/10


Allstate Tow Truck Insurance


  • Works with local insurance agents to offer personalized plans

  • A+ AM Best financial strength rating

  • Mileage-based discount policy


  • Usually more expensive than other providers

  • Mixed customer testimonials

Allstate ranks among the top insurance providers for tow truck coverage. The company was established in 1931 in Illinois but has grown to provide coverage throughout the US. 


Allstate wrecker insurance offers a range of coverage policies, including liability coverage (bodily injuries and property damage), collision coverage, comprehensive coverage (against fire, vandalism, hail, etc.), and underinsured/uninsured motorist coverage. 


Allstate Insurance also runs the Allstate Advantage program designed to provide easy access to knowledgeable, local insurance agents who can assess your unique risks, help you choose the best custom package, and adjust them to suit your business.

Like Geico and State Farm, Allstate provides 24-hour roadside assistance. With this coverage, you get expedited roadside help 24/7. 


Best for : Tow truck businesses looking for easy access to customer service online

Average cost: $487  per month

Our rating: 8/10

Progressive Tow Truck Insurance


  • Excellent choice for high-risk towing businesses

  • Simple quote process

  • High AM Best financial stability rating

  • Available in over 50 states

  • Offers tailored wrecker insurance


  • Average customer satisfaction

  • Higher insurance costs than other companies


Progressive is a reputable, go-to insurance provider for commercial trucking and towing companies. The company’s tow insurance packages offer protection for third-party liability, medical payments insurance (fire and theft with CAC Insurance, collision, and comprehensive), and uninsured/underinsured motorists.


Furthermore, Progressive provides On-Hook insurance to cover the vehicle you’re towing. There’s also Garage Keepers Legal Liability (also known as Storage Location Insurance), which covers the disabled vehicle stored in your garage.


Best for: High-risk tow truck owners

Average cost: $490  per month

Our rating: 6/10

Nationwide Tow Truck Insurance


  • High customer satisfaction

  • Customizable add-ons

  • A range of discounts

  • High AM Best financial stability


  • Not available in all 50 states

  • Lacks industry-specific insurance coverage


Nationwide Insurance was founded in 1925. The Columbus, OH-based insurance carrier provides dependable wrecker insurance coverage and add-ons. Your tow truck coverage from Nationwide protects you against liabilities (bodily injuries, medical costs, and property damage), collision coverage, comprehensive insurance (including natural disaster protection), medical payment coverage, and uninsured/underinsured motorist policy. 

Although the company only offers insurance coverage in selected states, clients can have peace of mind knowing their plans are underwritten by an insurer with strong financial backing. Besides, it offers quality customer support with 24/7 claims reporting, which you can do by phone, local agent, email, mail, or online. 


Best for: Towing companies looking for insurance backed by high customer care

Average cost: $505  per month

Our rating: 6/10


Liberty Mutual Tow Truck Insurance


  • 24/7 roadside assistance coverage

  • Discounts available 

  • Wide-ranging digital tools


  • Below-average claims satisfaction rating

Liberty Mutual is an insurance company that provides client-focused commercial auto and fleet insurance, including wrecker insurance. Dedicated to helping clients mitigate towing risks and exposures, Liberty Mutual offers coverage for liability, physical damage, collision insurance, comprehensive coverage, and uninsured motorists. 


If your tow truck gets involved in an accident or requires 24/7 emergency roadside maintenance solutions, Liberty Mutual can help. Like other companies, this coverage caters to towing to the nearest car repair and service center, emergency fuel deliveries, changing flat tires, unlocking car doors, and battery jump starts. 


With Liberty Mutual, 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. 


Best for : Towing businesses looking to increase their insurance savings every year

Average cost: $507.13  per month

Our rating: 6/10

Farmers Wrecker Insurance


  • Available in all 50 US states

  • Good range of coverage policies and add-ons

  • A range of cost-savings and discount opportunities

  • Well-reviewed mobile app


  • Some customers find roadside assistance very slow

  • Insurance premiums can be high in some states

  • Mixed customer reviews


If you run your towing business on a contract basis, you should consider Farmers Insurance for your towing company insurance policy. Established in 1928 and headquartered in Los Angeles, CA, the company provides flexible insurance options to cover your liability risks, collision coverage, physical damage, and medical payment policy. 


Besides its 90+ years in the insurance industry, Farmers boasts high financial ratings, having received an A, A+, and A2 ranking by AM Best, S&P, and Moody’s respectively. Generally, Farmers offers quality insurance-underwriting services, but its dedication to providing tailored policies makes it one of the top wrecker insurance carriers. 


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

Our rating: 8/10

American Family Wrecker Insurance 


  • Fewer negative reviews for a large company

  • Wide range of discounts

  • Offers a wide range of coverage


  • Unavailable in some states

American Family Insurance, also known as AmFam, is an insurance provider with over 90 years of experience in the insurance sector. The company started as an insurance carrier, providing auto coverage to farmers in Madison, WI. Today, it offers a wide range of coverage options for companies across different industries. 


It offers tow truck coverage as part of its suite of insurance plans under its property & business category. The policy provides basic commercial vehicle protection: liability coverage, comprehensive insurance, collision coverage, physical damage, and underinsured motorist insurance.


AmFam customers enjoy the convenience and improved customer services. The carrier provides the “MyAmFam” mobile app steeped with user-friendly features, including real-time payment status, road assistance, scheduled payments, claims reporting, policy changes, and instant proof of insurance. 


Best for: Tow truck companies looking for quality online customer support

Average cost: $521  per month

Our rating: 8/10

Fred Loya Wrecker Insurance 


  • Offers policies for high-risk drivers

  • Could offer reimbursement when your tow truck is in the repair shop


  • High number of customer complaints and legal issues

  • Clients can’t get quotes or report claims online

  • Doesn’t provide 24/7 claim filing

The Fred Loya Insurance Company was established in 1974 in El Paso, TX. Although it’s a relatively new insurance provider, Loya offers tailored tow vehicle insurance with protection that covers: third-party liabilities, physical damages to your tow truck, and collision insurance coverage. 


However, it’s worth noting that the company has faced lawsuits and customer complaints. In fact, Fred Loya has 400% more customer complaints than another insurer of its size. Besides, it doesn’t offer any digital experience; it has no mobile app to facilitate remote insurance applications. 


Loya is only available in 11 US states, with 726 locations. Most of them are clustered around Las Vegas, Los Angeles, and San Antonio. Furthermore, the company allows you to make payments online, but you can’t get quotes online. Customers must partner with local insurance agents to buy insurance or file claims.


Best for : Wrecker insurance for businesses in Las Vegas, Los Angeles, and San Antonio

Average cost : $527  per month

Rating: 4/10


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