If you’re in the trucking industry or you tow vehicles as part of your day-to-day work, tow truck insurance is something you need to keep your business protected. Tow truck insurance is a special type of commercial auto insurance policy that can help you if your tow truck is damaged. A lot can be riding on your tow truck, so you want to make sure you’re covered for the worst-case scenario. 

The Best Tow Truck Insurance

The risk associated with owning a tow truck and towing other vehicles is obvious, which is why tow truck insurance is necessary to ensure everything is taken care if something goes awry. You’re responsible for damage caused by both your tow truck and the vehicle you’re towing, so tow truck insurance can help cover you if you’re involved in a collision. 

Tow truck insurance is a specific type of commercial auto insurance offering basic liability coverage to businesses that tow trucks. Tow truck insurance is necessary if you own an auto body shop, an auto mechanical repair shop, you’re a full-service gas station, you’re an auction hauler or you’re a roadside service provider. 

Tow truck insurance doesn’t just provide coverage when your truck is towing another vehicle — it can also include coverage for others’ vehicles while parked in your garage or possession. Most tow truck insurance policies include a combination of bodily injury liability insurance and property damage liability insurance. The liability insurance helps you defend yourself legally or pay out court-ordered judgements if you’re involved in an accident. 

Your policy may also include medical payments insurance. Medical payments insurance offers coverage for you and any passengers in the vehicle at the time of an accident or in the case of an injury that is auto-related. The coverage is not available in all states, so speak with an insurance representative to learn whether you need this protection to remain on the road legally. 

You can also add truck-specific protections to the liability insurance you’re required to have on the road. For example, you can purchase a comprehensive physical damage insurance policy, which helps pay for repair and replacement costs if your vehicle is damaged, stolen or vandalized. Your insurance will cover both your vehicle and any vehicles being towed while they are on the road and on your property. 

While commercial truck insurance can be customized to fit the needs of your specific business, there are certain insurance providers that may be better for some companies than others. The following are the best tow truck insurance providers, along with an explanation as to why Benzinga thinks the insurer could work best for your business.  

Progressive

Progressive is one of the top insurers in the country offering tow truck insurance, and it offers different types of policies for any number of vehicles you might use in your business. Progressive is one of the only tow truck insurance providers that allows its users to get a commercial auto quote online. This, combined with the company’s nationwide reach, makes Progressive a convenient option for quick tow truck insurance. 

You can also save money if you enroll in the Progressive Smart Haul Program. The program allows Progressive to access and monitor driving data through an electronic logging device installed in your vehicle. The better you drive, the more you’ll save on your premiums. 

Simply Business

Simply Business isn’t your typical insurance company — in fact, it isn’t an insurance provider at all. Simply Business is an insurtech company that makes it easy to compare quotes on tow truck insurance with a few easy steps. Enter a bit of information about the industry your business is in and your insurance needs and begin comparing coverage. If you’re looking for the most affordable insurance possible, this tool makes getting quotes much faster. Simply Business also allows you to search for coverage for all different types of insurance you may need for your business. 

CoverWallet

CoverWallet is similar to Simply Business, as it offers a place to get multiple quotes from different insurance providers all in one place. You’ll not only be able to compare multiple quotes for tow truck insurance at once, but you can also search for insurance for all different aspects of your business. This allows you to get coverage that is tailored to your needs, and you can estimate your insurance needs before you shop using CoverWallet’s insurance estimation tool. 

Smart Financial

Smart Financial is an insurance marketplace that helps you compare multiple insurance quotes with just a few clicks. Smart Financial operates using the same basic method as CoverWallet and Simply Business — just enter information about the type of insurance company you want to work with to begin viewing quotes. Smart Financial partners with more than 200 insurance companies and collects quotes on your behalf so you spend less time online and more time insured. Smart Financial also offers a blog that you can use to learn more about insurance terms and tips before you start searching for a policy. 

What is Tow Truck Insurance?

If you’ve ever purchased a commercial auto insurance policy, you’re likely to be familiar with the basic coverages you’ll find on a tow truck insurance policy: bodily injury and property damage liability coverage. Bodily injury liability insurance helps pay for the medical bills of anyone you injure during a collision. Property damage liability insurance covers legal fees and court-awarded judgements you’re ordered to pay to anyone whose property you damage. The amount of insurance you need will vary depending on the state you live in.

Tow truck insurance is a general name for insurance policies that cover vehicles that transport other vehicles. Many insurance providers do not offer state-minimum policies on tow trucks because tow truck insurance requires them to be liable for both your vehicle and any vehicle you’re hauling. Specialized tow truck insurance providers can ensure you have a policy that covers both your vehicle and vehicles you transport. 

Can You Use Personal Insurance for a Work Vehicle?

While you technically can add a work vehicle to your personal insurance policy, it doesn’t mean it will work and actually offer coverage for the vehicle. Personal insurance policies typically don’t include business use, with the exception of your commute. If you’re driving your vehicle for business purposes and only have personal insurance and you’re involved in an accident, you won’t qualify to file a claim with your insurance provider. This can leave you potentially liable for thousands of dollars in legal fees and medical bills following a collision. 

In addition, if an employee was driving the vehicle when the incident occurred, it will also likely not be covered by your personal insurance. Commercial insurance allows you to give permission to employees to drive the vehicle so if something happens, it will be covered even if you’re not the one driving.

Advantages of Tow Truck Insurance

Some advantages of tow truck insurance include: 

• It’s required by law: You must have commercial auto insurance to legally drive a tow truck. Maintaining at least the basic liability protections required by law in your state will help you avoid fines and license suspensions if you’re stopped by the police. 
• Covers both vehicles: Tow truck insurance is unique because it offers coverage for both your towing vehicle and the vehicle being towed. Maintaining tow truck insurance can ensure that you won’t be left paying out-of-pocket for damage in the event that you collide with another vehicle while towing. 

You can also customize your insurance policy with add-ons, which will vary by provider. 

Frequently Asked Questions