Tow Truck Insurance Coverage

Tow truck insurance is essential for anyone who owns a tow truck, or runs a business that tows vehicles. Road Ready Insurance’s trucking specialists help choose the right coverage for your business.

These are the most popular types of tow truck insurance coverages:

Liability Insurance

Pays for injuries that you or your driver cause to other people. It also covers their property damage. There are two types of coverage: property damage liability coverage and bodily injury liability coverage. FMCSA requires minimum coverage of $750,000 for liability coverage. Common coverage is $1,000,00.

Insurance for Medical Payments

Medical payment coverage covers you and your passengers if you are injured in an accident up to a stated dollar amount. The most common amount is usually $5,000.

Coverage for Physical Damage

Your tow truck is covered for damages caused by an accident, such as a collision or a fallen tree branch. There are three types of coverage for physical damage: comprehensive, collision, fire and theft. This will be paid up to the stated value that you have assigned to the tow truck at the time the policy is issued. The usual deductibles are $1,000, $2,500 and $5,000. However, we don't recommend the $5,000 amount.

Tow truck insurance covers more than your tow truck. Many tow truck companies offer these optional protections:

Legal Liability Insurance

Optional coverage provides coverage for damages sustained by vehicles while they are in use, parked, or stored under cover.

On-Hook Insurance

On-Hook Towing insurance is a type liability insurance that covers vehicles damaged while being towed. On-hook towing insurance pays for the repair or replacement of damaged vehicles while they are being towed by you or one of your tow trucks.

What on-Hook Insurance Covers

On-Hook Towing Insurance covers other vehicles that are hooked up to your tow vehicle when they are damaged by:

  • Collision
  • Vandalism
  • Theft
  • Fire

What On-Hook Insurance will NOT Cover

  • Vehicles owned by you or your business are not covered if damaged
  • Damage to vehicles not connected to a tow truck
  • Personal injuries to your tow truck drivers or passengers in the tow truck.

On-Hook Insurance Coverage vs Cargo Insurance Coverage

On-Hook Insurance coverage is often confused with cargo insurance coverage. Only the vehicle itself is covered by On-Hook Insurance. Personal items such as purses, laptops and phones left in the vehicle are not covered by On-Hook insurance. This is within the scope of cargo insurance. Cargo insurance covers personal property that is left inside a towed vehicle against theft, vandalism, and physical damage. Cargo insurance is recommended for all towing businesses and can be combined with on-hook coverage.

Get the right On-Hook insurance for your business

Customizing your Policy

Each on-hook policy has a different deductible and limit. It is up to the business to decide what deductible and limit they should have.

  • The Limit refers to the maximum amount an insurance company will pay for an accident. A $20,000 limit covers up to $20,000 of damage, but not more.
  • The Deductible refers to the amount that you have to pay after an accident. A typical deductible is $1,000. You pay $1,000 to your insurance company after an accident and they will pay for repairs to your vehicle.

Tow truck insurance costs

Tow truck insurance costs vary. Towing truck insurance is similar to standard auto insurance. The cost of towing truck insurance will vary depending on many factors, such as the type of towing, driving history, and your location. Road Ready Insurance will insure your tow truck business gets the best coverage at a low rate.

Road Ready Insurance compares rates from the top insurance companies to help find affordable tow truck insurance that meets your needs. You can request a quote for tow truck insurance online or by calling us at 866-783-4870.

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