Why Personal Auto Coverage Often Falls Short
A standard personal auto policy often doesn’t cover the risks of operating tow trucks. These vehicles are frequently involved in high-risk situations, such as towing disabled or damaged cars, operating in heavy traffic, or working in hazardous conditions. Commercial auto coverage is often recommended to address these specialized risks.
Common Coverage Options for Tow Trucks
Coverage terms and availability vary by insurer and location. Always confirm exact details with your provider.
- Liability Coverage – May help cover injury or property damage claims if your truck or driver causes an accident.
- On-Hook Coverage – May help protect vehicles in your care while they are being towed.
- Garagekeepers Coverage – May help protect customer vehicles stored at your facility.
- Physical Damage Coverage – May help repair or replace your tow truck after a covered incident like a collision, theft, or vandalism.
- Uninsured/Underinsured Motorist Coverage – May help protect you if you’re hit by a driver without adequate insurance.
Factors That Can Affect Cost
Industry estimates suggest rates may range from $4,000 to $8,000 per year per truck, but actual premiums can be higher or lower depending on factors such as:
- Vehicle type and value
- Driver experience and records
- Type of towing services offered (roadside assistance, recovery, repossession)
- Operating territory and mileage
- Selected coverage limits and deductibles
Tips for Getting the Right Tow Truck Insurance
- Disclose All Operations – Whether you handle accident recovery, repossessions, or roadside service, be transparent to ensure proper coverage.
- Consider On-Hook and Garagekeepers – These are crucial for protecting customer vehicles.
- Review Limits Regularly – Higher-value towed vehicles may require increased coverage.
- Train Drivers – Good safety records can positively influence rates.
