Tow Truck Permits & Licensing Guide | Wexford Insurance
- Nate Jones, CPCU, ARM, CLCS, AU
- Sep 18
- 2 min read
Operating a tow truck business in the U.S. involves more than just owning a truck and offering roadside assistance. Whether you're towing passenger vehicles or commercial trucks, you’ll need to meet federal, state, and local licensing and permit requirements. In this blog, we’ll break down what special permits you may need to operate a tow truck—and how Wexford Insurance can help protect your business.
Do You Need a CDL to Drive a Tow Truck?
The need for a Commercial Driver’s License (CDL) depends on the weight of your tow truck and the vehicle being towed:
Class B CDL: Required if your tow truck has a Gross Vehicle Weight Rating (GVWR) of 26,001 lbs or more.
Class A CDL: Required if the combined weight of your tow truck and the towed vehicle exceed 26,001 lbs., and the towed vehicle is over 10,000 lbs.
Light-duty tow trucks used for passenger vehicles may not require a CDL, but heavy-duty wreckers almost always do.
State-Issued Tow Truck Operator Licenses
Even if a CDL isn’t required, many states mandate a special towing license or wrecker operator permit. These are issued by your state’s Department of Motor Vehicles (DMV) or Department of Transportation (DOT) and may include:
Application fees
Background checks
Written exams on towing laws and safety
Proof of insurance
Some states also differentiate between incident management towing, private property towing, and consent towing, each requiring a different permit.
DOT and MC Numbers
If your tow truck business operates across state lines, you’ll need:
A USDOT Number from the Federal Motor Carrier Safety Administration (FMCSA)
An MC Number (Motor Carrier Authority) if you’re transporting vehicles for hire
These identifiers are used to track safety records and ensure compliance with federal regulations.
Local Business Licenses and Permits
In addition to federal and state requirements, you may need:
A general business license from your city or county
Zoning permits for your storage yard or impound lot
Impound permits if you plan to tow and store vehicles
Always check with your local municipality to ensure you’re fully compliant.
Insurance Requirements for Tow Truck Operators
Tow truck businesses face unique risks, including vehicle damage, liability claims, and roadside accidents. That’s why comprehensive insurance coverage is essential.
At Wexford Insurance, we specialize in tow truck insurance and offer:
Garage Keepers Liability
Physical Damage Coverage
On-Hook Towing Insurance
General Liability
Conclusion
Yes, you do need special permits to operate a tow truck—especially if you're handling heavy-duty vehicles or crossing state lines. From CDLs to state-issued towing licenses and DOT numbers, compliance is key to running a legal and successful operation. And with the right insurance from Wexford Insurance, you can tow with confidence. Contact now!
