Insurance Requirements for Tow Trucks

A tow truck is designed for the specific purpose of transporting other vehicles. Because of its unique design and use, tow truck insurance requirements are different from those of other types of trucks. Here are some of the policies you might need and the damages they cover:

  • Auto liability insurance: Broadly covers damages to another person’s vehicle, and is the bare minimum requirement in most states.
  • Medical payments: Pays for medical bills if your truck drivers are at fault in an accident that injures someone.
  • Physical damage: Helps to pay for repairs to your tow truck if it is damaged in a wreck.
  • Uninsured/underinsured motorist: Covers costs of a collision when the driver at fault does not have insurance nor has insurance insufficient to cover damages to your tow truck.
  • On-hook towing insurance: Protects you from liability by paying for any damages to vehicles that occur while being towed.
  • Garage keeper’s legal liability insurance: Insures against damage and theft of client vehicles while they are being stored at your place of business.

There are a lot of different choices in coverage to help protect your tow trucks, your company, and your clients. Your insurance agent can answer any questions and help you select a policy that best fits your business.