Tow Truck Insurance for New Ventures: What You Need to Start
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 12
- 2 min read
Starting a tow truck business can be a profitable venture, especially with the growing demand for roadside assistance and vehicle recovery services. But before you hit the road, securing the right insurance is critical—not just for legal compliance, but for protecting your investment and reputation.
Why Tow Truck Insurance Matters
Tow trucks operate in high-risk environments, often dealing with disabled vehicles, traffic hazards, and unpredictable roadside conditions. Without proper insurance, a single accident or damage claim could derail your business before it gets off the ground.
Wexford Insurance specializes in helping new tow truck ventures across the U.S. find comprehensive, affordable coverage tailored to their needs.
Essential Insurance Coverages for Tow Truck Companies
Auto Liability Insurance – Required by law, this covers bodily injury and property damage caused to others in an accident.
On-Hook Towing Insurance – Covers vehicles being towed in case of damage during transport.
General Liability Insurance – Covers third-party claims unrelated to driving, such as property damage at a job site
Garage Keepers Legal Liability – Protects customer vehicles stored at your facility from theft, fire, or vandalism.
Workers’ Compensation Insurance – Required if you have employees; covers medical expenses and lost wages due to work-related injuries.
Physical Damage Coverage – Covers your tow truck against collisions, theft, and natural disasters.
Wexford Insurance helps you build a policy that includes all the necessary coverages to keep your business protected and compliant.
Common Mistakes New Tow Truck Businesses Make
Skipping On-Hook Coverage: This is essential for protecting the vehicles you tow.
Underinsuring Equipment: Tow trucks are expensive—make sure your policy reflects their full value.
Ignoring Local Regulations: Insurance requirements vary by state and municipality.
Choosing the Cheapest Policy: Low premiums often mean limited coverage. Wexford Insurance helps you find the right balance between cost and protection.
How Much Does Tow Truck Insurance Cost?
Insurance costs depend on:
Type of tow truck (flatbed, wheel-lift, hook and chain)
Location and operating radius
Driving history
Number of trucks and employees
Coverage limits
On average, tow truck insurance for new ventures ranges from $4,000 to $15,000 annually per truck. Wexford Insurance works with multiple carriers to find competitive rates that match your business model.
Final Thoughts
Launching a tow truck business requires more than just a truck and a license—it requires smart planning and reliable insurance. With the right coverage, you can protect your assets, meet legal requirements, and build trust with customers. Wexford Insurance is your partner in securing the coverage you need to start strong and grow confidently. Connect now!
