Tow truck insurance generally costs $7,000 to $15,000 per truck per year, and can run higher for repossession or heavy-duty recovery work. It is priced above most trucking classes because of the unique risks of towing.
Why Towing Is Expensive to Insure
- Other people's vehicles: you are responsible for the cars in your care, on the hook and in your lot.
- Roadside danger: operators work at accident scenes and on shoulders, a high-injury environment.
- Frequent stops and short trips: more exposure per mile than long-haul freight.
Coverages Every Tow Operator Needs
A proper tow truck insurance package includes:
- Primary liability — bodily injury and property damage to others
- On-hook / in-tow coverage — the vehicle you are towing
- Garage keepers — vehicles stored at your lot or yard
- Physical damage — your truck and equipment
On-hook and garage keepers are the coverages general insurers often miss. Skipping them is the most common way tow operators end up underinsured.
What Affects Your Rate
Expect pricing to hinge on the type of towing (light-duty vs. heavy recovery vs. repo), your radius, driver records, and lot value for garage keepers limits.
Getting the Best Price
Because tow insurance is specialized, working with a broker who understands on-hook and garage keepers matters more here than in almost any other class. Request a free tow truck quote or call (800) 726-8376.