Tow Truck Insurance: Cost & Quotes From $11

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Updated: March 27, 2025 . 7 min read

Written by Ofir Sahar

CEO & Founder

Ofir Sahar

CEO & Founder

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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

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. 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. 

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. 
  • Medical insurance – It covers any medical expenses you and any other person in your car incur for treating the injuries sustained following a crash.
  • Physical damage insurance – It covers the repair costs for your vehicle if it’s damaged by an accident,  fallen tree branch, theft, vandalism, or lightning.
  • 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. 

Tow Truck Insurance Cost

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:

  • 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

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

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 Insurance

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.

Best Tow Truck Insurance Companies

CoverWallet 

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

Our rating: 10/10

Pros

  • Has an online quotes comparison platform 
  • No cancellation fees
  • Cancel a policy anytime and get refunds
  • Pay premiums and get proof of insurance online

Cons

  • Doesn’t cover high-risk tow trucking businesses

Thimble  

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

Pros 

  • Has a business insurance calculator so that you can estimate the cost of premiums
  • Includes short-term general liability insurance in its wrecker insurance

Cons

  • Claims can only be filed online

Compare Cheap Tow Truck Insurance Quotes Online

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

 

State Farm 

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:

  •  mechanical labor costs (up to an hour), 
  • towing disabled vehicles to the nearest repair station, 
  • cost of item required to bring a wrecked vehicle to a drivable condition

Average cost: $465.89  per month

Our rating: 9/10

Pros

  • 24/7 emergency roadside service coverage
  • Provides discounted insurance rates
  • Better-than-average customer satisfaction rating

Cons

  • Limited coverage to businesses not providing roadside assistance

Progressive Tow Truck Insurance

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

Our rating: 6/10

Pros

  • 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

Geico  

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

Our rating: 8/10

Pros

  • Online claims management
  • High-level customer care
  • Insurance available in 50 states
  • Solid financial strength rating from AM Best

Cons

  • Average quotes process
  • Geico insurance app not available in all states

USAA  

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

Our rating: 6/10

Pros

  • Cheap rates and many discounts
  • Excellent choice for military service members
  • Available nationwide
  • High AM Best financial stability rating

Cons

  • Only available to military personnel and their families

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Allstate 

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

Our rating: 8/10

Pros

  • Works with local insurance agents to offer personalized plans
  • A+ AM Best financial strength rating
  • Mileage-based discount policy

Cons

  • Usually more expensive than other providers
  • Mixed customer testimonials

 

Cons

  • Average customer satisfaction
  • Higher insurance costs than other companies

Nationwide 

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

Our rating: 6/10

Pros

  • High customer satisfaction
  • Customizable add-ons
  • A range of discounts
  • High AM Best financial stability

Cons

  • Not available in all 50 states
  • Lacks industry-specific insurance coverage

Compare Cheap Tow Truck Insurance Quotes Online

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

 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

Pros

  • 24/7 roadside assistance coverage
  • Discounts available
  • Wide-ranging digital tools

Cons

  • Below-average claims satisfaction rating

 

Farmers  

They boasts high financial ratings, having received an A, A+, and A2 ranking by AM Best, S&P, and Moody’s respectively. 

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

Pros

  • 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

Cons

  • Insurance premiums can be high in some states
  • Mixed customer reviews

 

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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