Tow Truck Operator Insurance Made Easy - Strong Tie Insurance Services

Tow Truck Operator Insurance Made Easy

Strong Tie Insurance October 18, 2021 Our Blog

If you have your tow truck, and you’re ready to start your towing business, you need to first acquire a semi-truck insurance policy that would protect you, your truck, your driver, as well as your customer, their vehicle, and their personal belongings in their vehicle.

You never know what awaits you on the road, so it is always best to prepare for the worst and cover all your bases for a safe driving experience and peace of mind.

Check out the guide below to learn everything you need to know about tow truck operator insurance, so you can start properly protecting your towing business today!

Tow Truck Operator Hazards

When it comes to any business, there are certain risks and hazards that no amount of prevention can steer clear of. Knowing this allows a business operator to make the necessary preparations to avoid any unmanageable financial losses or potential bankruptcy.

As a tow truck operator, it’s important that you identify the hazards that come with your business. Tow truck drivers are exposed to a higher risk of injury and death compared to the average driver.

As they are driving with another vehicle in tow, they are at greater risk of suffering a vehicular accident. Additionally, when towing damaged vehicles, they are often exposed to jagged car edges and shards of glass—health hazards that can cause injury.

Moreover, it’s important to consider the services you are offering. Are you offering basic roadside assistance only, or will you also be offering roadside repair and in-house services? Depending on the nature of your towing business, the risks may differ. 

But most commonly, tow truck operators across the board face the risk of damages and financial losses when there are injuries or damages to the tow truck, truck driver, another party, property, customer, towed vehicle, and personal belongings of the customer in the towed vehicle.

Tow Truck Operator Insurance Coverage Types

Knowing the risks and hazards a tow truck operator is faced with, one must learn about the various coverage types available, this will help you make a better decision when choosing the best insurance policy for your needs.

Moreover, this knowledge helps you respond better to incidents as they come up. 


For any vehicle to operate on the roads, you must first have primary liability coverage. This is the most basic type of coverage. It protects you from incurring unexpected or even crippling financial losses when you injure other people or damage some property with your tow truck.

When injury or property damages happen due to your negligence, your primary liability insurance will cover the costs within the coverage limit that is included in your insurance policy.

Physical Damage 

While liability coverage ensures that other people and their property are protected against you, physical damage coverage protects the tow truck itself.

Physical damage coverage pays for any damages to your truck that may be caused by road accidents, as well as fire, theft, and vandalism.

This is particularly useful if you bought the truck yourself and would like to have financial protection against any possible damages to your truck, whether it is or isn’t your fault.


Aside from protecting the tow truck, operators should also protect their clients, hence, an on-hook coverage.

This type of coverage protects the customer’s vehicle against potential damages. Should anything happen to a vehicle you are towing or are hooked to your tow truck, your insurance policy will pay for the damages. 

Medical Fees

Tow truck operators don’t always just deal with vehicles. Oftentimes, as your tow truck transports a vehicle, it also gives the customer a ride.

As such, medical coverage should be present so that you can pay for medical fees should your driver or any other passenger tagging along suffer injuries.

Uninsured or Underinsured Motorists 

Tow truck operators have to be prepared for all scenarios. When your tow truck encounters road incidents, the other party may not always have liability insurance to compensate you for your damages—or they do, but it is not enough to cover all expenses.

In such situations, having uninsured or underinsured motorists coverage will take care of your medical fees and vehicular damages. Depending on the situation, this coverage may even pay for the damages of the uninsured or underinsured party.


When your tow truck is transporting a vehicle, it may contain personal belongings or valuables which are not covered by an on-hook coverage. For this, you need cargo insurance to pay for potential loss or damages to said items in the vehicle. 

Garage Service

Depending on the nature of your tow truck business, you may or may not provide in-house services and have the need to temporarily hold customers’ vehicles. If you do, then garage service coverage is necessary.

This type of coverage ensures that damages incurred by the vehicle you are servicing will be covered by your insurance policy. 

Tow Truck Operator Insurance Costs

In 2020, basic tow truck operator insurance costs anywhere from $1000 to $2000 a month. This includes primary liability insurance which costs $450 per month on average. On-hook insurance, on the other hand, costs $550 per month on average, as well as cargo insurance which costs $600 per month on average.

As tow truck operators avail themselves of higher premiums and include additional coverage such as those for physical damages, medical fees, and uninsured motorists, the premium can be much higher.

Similarly, for tow truck operators who only offer basic roadside services, the premiums can be much lower.

Get the Tow Truck Operator Insurance You Need

You know your business best. Based on the outlined coverage types above, you can determine what you need to include in your tow truck operator insurance.

We can provide you with the most comprehensive plans for your tow truck operators, trucks, and semi-trucks.

We have over 20 years of experience, protecting drivers and businesses on the road, and we will equip you with tow truck insurance or semi-truck insurance that will allow you to operate your trucking business without worry!

Steer your towing company right! Explore essential strategies in ways to meet the requirements of your towing company insurance from our user-friendly blog post. Simplify your path to comprehensive tow truck operator insurance with expert insights.

Get a free quote, contact us at Strong Tie Insurance today!