Operating a tow truck company involves major risks. You face exposure when towing disabled vehicles storing customers’ cars and driving large trucks extensively. That’s why customized commercial tow truck insurance is essential.
But how much does adequate protection actually cost for tow truck businesses?
In this comprehensive guide from Alliance Towing Insurance we’ll explore everything you need to know about monthly and annual tow truck insurance rates, including
- Average costs of tow truck insurance per month
- What coverages towing companies need
- Major factors that impact your premiums
- Tips to get the most affordable rates
- Whether tow truck insurance is required by law
We’ll provide a complete overview of how much you can expect to budget for proper tow truck insurance coverage. Let’s get started!
Average Monthly and Annual Tow Truck Insurance Rates
According to our latest insurance data, here are the typical costs for commercial tow truck insurance:
- Average Monthly Premium – $425 to $475
- Average Annual Premium – $5,100 to $5,700
However, your exact rates depend on your specific vehicles, driving records, business activities, deductibles, and other individual factors.
Some tow truck companies pay premiums closer to $350 per month, while high-risk operations can exceed $600 per month. It pays to shop around!
Why Tow Truck Insurance Is Crucial
Towing businesses have substantial risks that absolutely require proper commercial insurance. As a tow truck operator, you need policies to cover:
Liability Exposures – Bodily injury or property damage you cause to others while towing, dropping vehicles, on the road
Physical Damage – Collision, upset/rollover, theft, vandalism, or fire damage to your expensive trucks
Customer Vehicles – Damage to cars while hauling, improper release of vehicles
Storage Risks – Customer vehicles on your lot, damage during storage
Employee Injuries – Workers’ comp claims if staff gets hurt on the job
Carrying adequate tow truck insurance limits provides essential protection against these daily risks.
Types of Tow Truck Insurance and Recommended Minimum Limits
To properly cover your liability as a towing company, Alliance Towing Insurance recommends carrying:
Commercial General Liability – $1 million per occurrence
Garagekeepers Liability – $100,000 minimum
On-Hook Physical Damage – Limits equal to value of customer vehicles
Bodily Injury/Property Damage – $750,000 to $1 million
Uninsured Motorist – Policy limits to match your liability
Collision/Comprehensive – Matching your truck value
Roadside Assistance – Up to 100 miles or more
Higher liability limits prevent you from personal exposure if a major accident claim exceeds your coverage. Protecting your actual trucks and customer vehicles is also crucial.
Major Factors That Influence Tow Truck Insurance Rates
Multiple variables determine what tow truck businesses pay for insurance. The biggest factors impacting your monthly premiums include:
- Your driving and accident history
- Years of industry experience
- Number of trucks and drivers
- Types of trucks – light duty, medium duty, heavy duty
- Geographic service area
- Average tow mileage per truck
- Safety record and driver training
- Years in business
- Garagekeepers limits and deductibles
- Selected liability coverage limits
- Amount of tow vs storage revenue
Evaluating these factors helps insurance companies analyze your total risk. Maintaining a clean record can significantly reduce what you pay.
Tips to Get the Most Affordable Tow Truck Insurance
Follow these tips from the insurance experts at Alliance Towing Insurance to score lower rates:
- Maintain clean driving records with no moving violations or accidents
- Complete additional driver training and certification
- Implement robust safety programs and document all protocols
- Choose higher liability deductibles to lower premiums
- Ask about discounts for years in business, loyalty, equipment upgrades, etc.
- Insure all vehicles with one company to get multi-policy discounts
- Manage driver fatigue through schedules, sleep rules
- Install dash cams to contest false claims against your drivers
- Keep trucks well-maintained with routine service and records
Taking proactive steps to minimize risks leads to major savings on monthly insurance costs.
Is Tow Truck Insurance Required by Law?
There are no universal tow truck insurance requirements at the federal level. However, many states and cities mandate minimum liability limits to legally operate tow trucks. For example:
- Florida requires $300,000 per incident
- California municipalities require $750,000 to $1 million
- Cities like Philadelphia and Chicago set minimum regulations
Check your local towing regulations to ensure you carry adequate required insurance. Most areas have implemented regulations to protect consumers. Carrying appropriate coverage is smart business either way.
Partner With Alliance Towing Insurance for Competitive Rates
Don’t overpay for bare bones policies from standard insurers. Work with the experts at Alliance Towing Insurance to access affordable rates on customized protection.
As independent agents, we have relationships with national and regional insurance carriers offering specialized tow truck insurance. We compare multiple carriers to find you the best value.
Contact Alliance Towing today to receive no obligation tow truck insurance quotes:
- Call (123) 555-1234
- Email [email protected]
- Visit alliancetowinginsurance.com
We look forward to helping you get protected and back on the road while keeping insurance costs as low as possible. Trust Alliance Towing Insurance to meet all your tow truck insurance needs!
How much does it cost to insure a tow truck?
The cost of insurance for a tow truck depends on a lot of things, like the type of truck, how old the vehicle is, the driver’s record, where the truck is located, and the level of coverage that is wanted.
First, the type of truck will impact the cost of insurance. It usually costs more to insure a newer, bigger, and more specialized tow truck than an older, smaller, and simpler one. The age of the car is also important, since older cars tend to have higher insurance rates because they are worth less and are more likely to break down.
Second, the driving record of the operator will impact the cost of insurance. Most of the time, a driver with a clean driving record will pay less for insurance than a driver with a history of accidents or traffic violations. Insurance companies think that drivers with clean records are less of a risk and are less likely to file claims.
Third, the location of the truck can impact the cost of insurance. Tow trucks that work in cities with lots of people are more likely to get into accidents and be stolen than tow trucks that work in rural areas. Tow trucks that work in high-risk areas will usually have higher insurance rates because accidents and theft are more likely to happen there.
Finally, the desired amount of coverage will impact the cost of insurance. There are different types of insurance that a tow truck driver can choose from, such as liability insurance, collision insurance, and comprehensive insurance. The bare minimum in insurance is liability coverage, which only pays for damage to other cars in the event of an accident. Collision coverage pays for damage to the tow truck, while comprehensive coverage pays for damage that isn’t caused by a collision, like damage from theft, fire, or natural disasters. The more coverage desired, the higher the cost of insurance.
“I own a tow truck business, and I need insurance to cover my trucks. How much does it cost to insure a tow truck?”
- How much does it cost to insure a tow truck? The cost of your policy will depend on four things: the type of truck, the location of the truck, the driver(s)’ driving record, and the amount of coverage you want.
- Every year, it costs about $2,000 to $5,000 to insure a tow truck.
How much does it cost to insure a tow truck? If you run a tow truck business, this question has probably been making you crazy. You understand that your trucks need insurance, but you’re concerned about how much it will cost. That’s why we’re here to make the insuring process a lot easier.
If this is your first time reading this blog series, welcome! We’re a group of insurance experts from Colorado Springs. We love educating people about insurance so they can feel more confident about their coverage. In this post, we’ll answer the question “How much does tow truck insurance cost?” and then show you how to talk to an insurance agent for free about different policies.
How Much Is Tow Truck Insurance Per Month?
FAQ
Why is tow truck insurance so expensive?
How much is tow truck insurance per month in Texas?
What does tow mean in insurance?
How much does tow truck insurance cost?
As we learn above, the average tow truck insurance cost is $448 per month. However, that is just for trucking primary liability coverage, which is required by all state and federal regulations. If you add additional coverages that a towing business would need, the average comprehensive tow truck insurance policy costs $1,198 per month.
How do I get a tow truck insurance quote?
The best practice is to request a tow truck insurance quote from a short list of companies, and then compare the costs. Most of the major insurance companies, even those that provide coverage for towing businesses, do not offer wrongful repossession coverage.
What factors affect my tow truck insurance cost?
Many factors influence your tow truck insurance cost, including your location, type of towing and driving history. For example, our data represents new annual policies with both primary liability and physical damage coverages and a clean driving record for all drivers. You can expect your premium to vary depending on your needs.
How do I save money on tow truck insurance?
The coverage and limits you select will also factor into your annual premium. You can save money on tow truck insurance by paying your annual premium in full instead of monthly, opting for a higher deductible or bundling your coverage with personal auto insurance or other types of business insurance.