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 tow truck insurance you can count on.

Since 1980, American Insurance Brokers has delivered straightforward and trustworthy insurance options to truck 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. This is what you need to know about your tow truck insurance options.

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, though. 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.

What are general tow truck insurance requirements?


tow truck insuranceLater in this page, you’ll find information about tow truck insurance requirements that are specific to the state where you’re based. However, there are many similarities when it comes to general coverage guidelines as federal law mandates certain elements of coverage.

These are some of the most common coverages you’ll find in a tow truck insurance policy:

  • Primary liability insurance: This is a broad, basic level of coverage that is required by law. This may protect you from the cost of damage or injuries to other people after a tow truck accident. You select your level of coverage at the time of purchase.
  • Medical payments: Also known as MedPay, this coverage may help you pay for injury costs suffered by others after an accident caused by you or one of your drivers.
  • Physical damage: If your tow truck is damaged or totaled in an accident, this coverage can help you manage the cost of repairs or a new vehicle.
  • Uninsured/underinsured motorist: Unfortunately, there are some drivers who don’t carry insurance. In other cases, their insurance coverage is simply not enough to cover damages or injuries after an accident. These cases make uninsured/underinsured motorist coverage important.
  • On-hook towing insurance: If something happens to the vehicle you’re towing, on-hook towing insurance can help you cover the cost of damages.
  • Garagekeepers legal liability: Towing operations often require you to store a vehicle, particularly when it comes to repossession services. This coverage can protect you in the event of a fire or other accidents while vehicles are in your possession.

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

  • MCS90
  • BMC34
  • BMC91-X
  • Form E
  • Form H
  • SR22

Confused by the various requirements of obtaining legal and affordable truck insurance? American Insurance Brokers can help you sort through jargon, so you know exactly what you need and what you’re paying for.

How much is tow truck insurance?


tow truck insuranceTow truck 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. For example, a single tow truck operator will pay less than a company with several tow trucks and a storage lot, but they may pay more per vehicle.

Beyond these variables, other considerations that go into determining the cost of your tow truck 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 will have an effect on your tow truck 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.

Also, as you browse various types of coverage, pay close attention to the deductible. This is the amount you will have to pay before insurance kicks in, as well as the absolute limit that the insurer is required to pay. The first number should be relatively low, and the latter should be high. Which one you choose will alter your final cost, though.

In Louisiana


Mandeville is the home of American Insurance Brokers, which means we know a lot about tow truck insurance in Louisiana. From unpredictable weather to traffic, we understand what you’re up against. Our team will get you coverage 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

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 truck 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.

In Alabama


Whether you find yourself in Huntsville, Birmingham, or Montgomery, we can get you the best tow truck 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:

  • MCS90
  • BMC34
  • BMC91-X
  • Form E
  • Form H
  • SR22

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’ll ensure you’ve filed all of the right paperwork to be in good standing on a federal and state level.

In Tennessee


From Knoxville to Memphis, tow truck 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:

  • MCS90
  • BMC34
  • BMC91-X
  • Form E
  • Form H


In Arkansas


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

Our primary liability coverage is required by law and covers tow truck damage or injuries to others in the event of an accident. You choose the coverage you need as dictated by Arkansas law.

In Georgia


While Georgia doesn’t require garage keepers or on-hook coverage, this type of insurance gives your business an important layer of protection. Our agents are knowledgeable regarding issues that are specific to tow truck insurance in Georgia.

As insurance brokers, not an insurance company, we’re 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 Tow Truck Insurance


Ready to get started? Find out why American Insurance Brokers is your first choice for tow truck 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 properly insuring your tow truck, or for a free policy review of your truck insurance, contact American Insurance Brokers today.