A Quick Guide to Tow Insurance Requirements and Coverage Options

A Quick Guide to Tow Insurance Requirements and Coverage Options

Did you know that millions of vehicles are towed every year in the United States? If you are considering starting a towing company because you want to be part of this billion-dollar industry, you are in the right place. We are going to go over the options you have when it comes to tow truck insurance.

Keep reading to learn everything you need to know about towing insurance.

Types of Coverage

One of the most popular coverages is called on-hook insurance. This type of coverage covers the operators while they are pulling another vehicle behind them.

On-hook will protect the vehicle that you are working in and it will pay for any repair costs or replacement costs if there are damages done to a vehicle that you don’t own while you are moving it. You can learn more about truck insurance right here.

Another type of coverage is liability. This is very important coverage that tow truck drivers need because it is illegal to operate on the road without liability coverage. If a driver is ever in an accident this policy will cover the property damage and the bodily injuries that are caused by the accident.

Comprehensive insurance is a smart option to get if you have a newer vehicle. This coverage will protect you in the event that your truck gets damaged whether you are in a collision or not. Anyone that finances their truck they will have to also take out physical damage insurance to protect against any damages no matter who is at fault.

Uninsured motorist will help you if you are involved in a collision with another driver that does not have the proper coverage. You will still be compensated even if they are not carrying any insurance coverage.


Commercial auto drivers face so many hazards on the roads which is why you want to always have the best coverage for your needs. Being aware of these common hazards will help you make a better decision when you are looking for an insurance policy.

Most injuries are caused by being hit by other cars while driving on the road. The worst driving conditions are on the biggest industry dates throughout the year because there are a lot more people driving out on the road.

For those that will be impounding vehicles, there are risks from vehicle owners confronting you for picking up their vehicle. When loading cars onto your tow truck you run the risk of being injured with glass or jagged edges.

Feeling Like a Tow Truck Insurance Pro?

Now that you know more about tow truck insurance you can make an informed decision when you are shopping around for business insurance. Make sure to take your time while you are shopping because not all insurance policies are created equal.

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