Commercial Tow Truck Insurance

Towing is a big job that comes with a lot of pressure and responsibility. After an accident or breakdown, people want to know their vehicle will be in good hands. To provide the best service on the road, you need commercial tow truck insurance you can count on. 

Since 1980, American Insurance Brokers has delivered straightforward and trustworthy tow trucking insurance options to drivers across the Southeast. We serve Texas, Louisiana, Arkansas, Mississippi, Alabama, Georgia, and Tennessee. With a commitment to finding a policy that meets your needs, our agents treat customers like friends.  

To get started with securing your business with the right coverage, it’s important for you to know your options.

 truck towing vehicle

Why is commercial tow truck insurance important? 


The towing business is a growing industry. Year after year, research shows steady growth in the area of towing and roadside service. 

Severe weather and traffic have made the towing industry a busy business that comes with risks. There are three specific areas of liability when it comes to towing. These include the tow truck itself, the vehicles you tow, and the property you hold in a garage or other storage location. 

Without commercial tow truck insurance, you’re putting your business and livelihood at risk. Commercial tow truck insurance provides specific benefits including the following. 

  • Financial Protection – Insurance covers the cost of damages, so you don’t have to pay them out-of-pocket. 
  • Legal Compliance – Many states require specific insurance coverage for tow trucking businesses, and staying compliant reduces your risk of shutdown. 
  • Liability Protection – Insurance lowers the liability and financial consequences in the event of a claim or lawsuit. 
  • Damage Coverage – Insurance covers the replacement or repair of a damaged tow truck, which would otherwise be an expensive cost. 
  • Protection for Towed Vehicles – Insurance covers your business in the event a towed vehicle is damaged in transit, lowering your financial burden. 

Above all, tow trucking insurance provides peace of mind to you as a business owner. When you have the right coverage, you can rest easy knowing your bottom line and legal compliance will not be compromised. In the event of an accident, it can keep your business operating with minimal disruptions. 

How does commercial tow truck insurance work? 

Commercial tow truck insurance provides coverage that tow truck businesses need for secure and financially sound operations. It protects tow truck businesses from risks and liabilities that may occur when conducting towing services. Below is an overview of how commercial tow truck insurance works. 

Coverage Options 

Depending on the needs of your business, you can choose from a few coverage options. These options include the following. 

  • Auto Liability Coverage – Covers damages when a claim is brought against an insured tow truck. 
  • Physical Damage Coverage – Covers damages when an accident, theft, or vandalism against the tow truck occurs. 
  • On-Hook Coverage – Covers damages that occur to a vehicle as it is being transported by the tow truck.  
  • Garagekeepers Coverage – Covers damages when a vehicle stored at the tow truck garage is damaged, destroyed, or stolen. 
  • General Liability Coverage – Covers damages when a claim arises from injury on the premises of the tow trucking business. 
  • Medical Payments (MedPay) – Covers medical expenses suffered by others after an accident caused by you or one of your drivers. 
  • Uninsured/Underinsured Motorist – Covers damages when an incident occurs with a driver without or with inadequate insurance.  


Costs associated with tow trucking insurance are dependent on the size of the business, the size of the fleet, the value of the trucks, the location of the business, and the driving history of the operators. It is also determined by the coverage limits you select.  


If a claim is brought against your tow trucking business, you are required to pay a deductible before the coverage pays out. You will agree upon a deductible when you purchase your tow trucking insurance policy. A high deductible reduces your premium. However, you will need to pay more if a claim is made against you. 

Claims Process 

When an accident occurs, you must contact your commercial tow truck insurance company immediately. A claims adjuster will assess the incident and the claim, determining the compensation to which you as a policyholder are entitled. As a policyholder, you must cooperate with these assessments and provide any documentation deemed necessary. 

Policy Renewal 

Commercial tow truck insurance policies usually last for one year. When you renew your policy, terms may be adjusted based on your record or changes in business operations. 

When you’re ready to compare commercial tow truck insurance rates, American Insurance Brokers can help. We can search for the most comprehensive yet cost-effective rates and help you navigate policy terms.  

What are commercial tow truck insurance requirements? 

Requirements for commercial tow truck insurance can vary by state, which we’ve outlined later in this page. However, there are many similarities when it comes to general coverage guidelines as federal law mandates certain elements of coverage. 

Required Tow Trucking Insurance Coverage 

In the previous section, we introduced you to the typical coverage options. However, each state has specific requirements for these coverages.  

Auto liability coverage is required by law for all vehicles. Coverage limits may change depending on where you live. For example, the minimum limit may differ from state to state. In many jurisdictions, on-hook and garagekeepers coverage may also be required.  

Your specific requirements will vary by state and the nature of your tow trucking business. You may have required minimums for coverage or additional types of coverages required. If you’re not sure what is required in your location, consult with an expert at American Insurance Brokers.  

Required Federal and State Filing Requirements 

Your team must also make sure you don’t run afoul of insurance laws while enrolled in one of their policies. Tow trucking insurance includes a number of federal and state filing requirements including, but not limited to: 

  • FMCSA 
  • MCS90 
  • BMC34 
  • BMC91-X 
  • Form E 
  • Form H 
  • OS/OW COI 
  • SR22 

Confused by the various requirements of obtaining legal and affordable tow trucking insurance? American Insurance Brokers can help you sort through jargon, so you know exactly what you need to stay covered. 

How much is commercial tow truck insurance? 


Tow trucking insurance isn’t one-size-fits-all. The cost will depend on the type of coverage included, as well as the size of your business. A single tow truck operator will typically pay less than a company with multiple tow trucks and a storage lot. However, they may pay more per vehicle. 

Other considerations that determine the cost of your tow trucking insurance include: 

  • Location – Big cities or urban developments with more traffic typically come with a higher risk of accidents. Your location will have a significant impact on your insurance premium. 
  • Hours – Working around the clock can give you an edge with customers, but it also comes with more risks. Whether you’re open 24 hours or working typical business hours, your schedule will have an effect on your tow trucking insurance costs. 
  • Towing Capacity – What types of tow trucks do you drive? From underlift wreckers to rollback carriers, your fleet matters. The general type and value of the vehicles you tow will also be a factor. 

As you browse various types of coverage, pay close attention to the deductible. This is the amount you must pay before insurance coverage begins. 

The insurer is legally obligated to pay up to this limit. The first number should be relatively low, and the latter should be high. The deductible you choose will alter your final cost. 

Tow Trucking Insurance In Louisiana 


Mandeville is the home of American Insurance Brokers, which means we know a lot about tow trucking insurance in Louisiana. From catastrophic weather to unpredictable traffic, we understand what you’re up against. Our team will get you covered for the right risks at the right price. 

In addition to the general coverage areas previously mentioned, we cover the following endorsements for Louisiana: 

  • MCS90 – Shows that the driver’s financial commitment meets the state’s minimum requirements 
  • BMC34 – Shows cargo liability coverage 
  • Form E – Demonstrates that drivers carry the minimum required insurance 
  • Form H – Confirms that drivers carry the minimum required cargo liability insurance for their home state 
  • OS/OW COI – Proves to Louisiana that drivers have sufficient liability insurance to operate oversize or overweight vehicles 
  • SR22 – Shows that drivers have filed minimum liability insurance with their home state motor vehicle department 

Commercial Tow Truck Insurance In Texas 


Texas may be known for wide-open spaces, but city centers are another story. Whether you’re covering ground in Dallas, Austin, or Houston, we offer several different types of tow trucking insurance for businesses in the Lone Star State. These include: 

  • Trucker’s Liability 
  • Commercial Auto Liability 
  • Trailer Interchange 
  • Non-Trucking Liability 
  • Motor Truck Cargo 
  • Workers’ Compensation 

Let us take a look at your existing policy to see if you need additional tow truck insurance in Texas. 

Tow Trucking Insurance In Alabama 


Whether you find yourself in Huntsville, Birmingham, or Montgomery, we can get you the best tow trucking insurance in Alabama. 

Premiums for primary liability coverage are determined by driving record, garage location, and limit of liability coverage desired. Our specially trained staff will ensure that your policy complies with all federal and state requirements, including: 

  • FMCSA 
  • MCS90 
  • BMC34 
  • BMC91-X 
  • Form E 
  • Form H 
  • OS/OW COI 
  • SR22 

Commercial Tow Truck Insurance In Mississippi 


Like nearly all states, the Mississippi government requires that commercial tow truck drivers carry a minimum amount of liability insurance. At American Insurance Brokers, we can help you find the right policy for your business needs. 

Whether you’re an independent driver or operating a fleet, tow truck insurance in Mississippi is critical. We will ensure you have filed the appropriate paperwork. This will ensure you are in good standing with the federal and state governments. 

Tow Trucking Insurance In Tennessee 


From Knoxville to Memphis, tow trucking insurance in Tennessee is easy when you work with American Insurance Brokers. 

Like many other states, the amount of liability insurance you need will depend on the scale of your towing business. From there, we can add on important coverages, such as MedPay. 

Our agents will also file the necessary state and federal forms. This allows us to make sure your coverage is always up to date according to changes in the law. This pertains to several different requirements, including, but not limited to: 

  • FMCSA 
  • MCS90 
  • BMC34 
  • BMC91-X 
  • Form E 
  • Form H 
  • OS/OW COI 
  • SR22 

Commercial Tow Truck Insurance In Arkansas 


Different situations call for different coverage types, and we offer a variety of options for tow trucking insurance in Arkansas. 

Our primary liability coverage is a legal requirement. It provides coverage for tow truck damage or injuries to others in case of an accident. You choose the coverage you need as dictated by Arkansas law. 

Tow Trucking Insurance In Georgia 


Georgia does not require garagekeepers or on-hook coverage for tow trucking insurance. However, these coverages give your business an important layer of protection. Our agents are knowledgeable regarding issues that are specific to tow trucking insurance in Georgia. 

As an insurance broker, not an insurance company, AIB is brand neutral and can independently advise you on choosing the best policy for your unique needs. Plus, we’ll be right by your side if you experience an issue or accident, working to get you back on the road. 

Your First Choice for Commercial Tow Truck Insurance 

  Driver Securing Care on Tow Truck Bed

Ready to get started? Find out why American Insurance Brokers is your first choice for tow trucking insurance in the South. We have the expertise to help you select the best policy to give your business maximum security without overpaying on premiums. 

We serve the entire southeastern U.S. – and it’s also where we make our homes. Our team is local, highly accessible, and always ready to help. Known for our great staff and customer service, policyholders recommend us to their friends and associates. With American Insurance Brokers on your side, you’ll have the support to stay on the road safely. 

For more information on commercial tow truck insurance, or for a free policy review, contact American Insurance Brokers today.