Tow truck insurance: What insurance do I need to tow cars?

Consider the following coverages for tow trucks. • Auto liability • Physical damage • On-hook/In-tow • Garagekeepers • Garage liability • Wrongful repo

You’ve got this tow truck and you’ve got this tow truck business, but what insurance do you need to tow cars? We’ll go over some of the must-have coverages.

What insurance coverages do I need to tow cars?

Auto liability insurance – Helps cover your legal obligation to the other driver if you cause an accident. Also helps cover legal expenses if the driver sues.

  • Bodily injury liability – helps cover the other driver’s medical expenses
  • Property damage liability – helps cover the repair or replacement of the other driver’s car (or other property)

Ex: You accidentally run a red light and cause an accident that injures the other driver and damages their car.

Physical damage – Helps repair or replace your tow truck if it’s damaged

  • Collision coverage – helps repair your truck if you’re in an accident
  • Comprehensive coverage – helps repair your tow truck if it’s damaged by fire, theft, animal strike, falling objects, or vandalism.

Ex: A tree falls on your tow truck. Stupid tree.

On-hook/In-tow – Protects the client’s car while you’re towing it.

Ex: You skid off the road while towing a client’s car and hit a tree. The client’s car is squished.

Garagekeepers insurance – Protects your clients’ cars if you have care, custody, and control of them (ex. If you store customer vehicles on your premises.)

Ex: A fire strikes at your premises and destroys the five client cars you have on your lot.

Garage liability – Helps cover claims of bodily injury or property damage that are caused by services your business provides.

Ex: You change someone’s tire. A mile down the road, the tire pops off because of a mistake you made. The driver gets into an accident.

Wrongful repo – Helps cover claims if you accidentally repossess a car that you’re not supposed to.

Ex: You get a notice to repossess a car. You forget to check with the bank to see if they still need the car. You repossess it only to find out that the driver had made their payment.

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