How much does tow truck insurance cost?

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On average, tow truck insurance costs can range from $300 to $800 per month per tow truck. However, it’s essential to keep in mind that these are rough estimates, and the actual cost will depend on various factors we’ll mention below, such as location, type of coverage, driving records, type of vehicle, business size, experience, towing radius, claims history, and chosen deductible. To get the most accurate estimate for your tow truck insurance cost, we recommended you complete our Quick Quote Form to get quotes from 3+ insurance providers. This way, you can find the best coverage at the most competitive price.

If you own a tow truck or operate a towing business, then having insurance coverage is crucial to protect yourself, your employees (if you have any), and your business from unexpected events. However, as we mentioned, the cost of tow truck insurance can vary depending on several factors. Let’s explore the different factors that affect tow truck insurance cost and how to find the best insurance coverage for your business.

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What is Tow Truck Insurance?

Tow truck insurance is a type of commercial auto insurance designed to protect tow truck operators from various risks associated with their business operations. This coverage includes liability insurance, which covers damages or injuries caused by the tow truck to other people or property, as well as collision coverage that covers damages to the tow truck.

Factors That Affect Tow Truck Insurance Cost

Type of Coverage: The cost of tow truck insurance depends on the type of coverage you choose. The more coverage you have, the higher the insurance premium will be. The most common types of coverage for tow truck insurance are liability, physical damage, and uninsured motorist coverage.

Location: Insurance companies consider the location of your business when calculating the insurance premium. If you operate in an area with high traffic or a high crime rate, you may have to pay a higher premium.

Driving Record: Insurance companies also consider the driving record of the tow truck operators. If the operators have a history of accidents or traffic violations, the insurance premium will be higher.

Type of Vehicle: The cost of tow truck insurance depends on the type of vehicle you own. For example, a flatbed tow truck will have a higher insurance premium than a regular tow truck.

Business Size: Insurance companies also consider the size of your business when calculating the insurance premium. If you have a larger fleet of tow trucks, you may have to pay a higher premium.

Experience: The experience of your tow truck operators can also impact the cost of insurance. Drivers with more experience in the towing industry typically receive lower insurance premiums due to their perceived lower risk.

Towing Radius: The area you cover with your towing services can also affect the cost of your tow truck insurance. If you provide services within a larger area or across state lines, you may face higher insurance premiums due to the increased risk of accidents and liability.

Claims History: Your previous claims history with insurance companies can influence your tow truck insurance cost. If you have a history of filing numerous claims, insurers may perceive you as a higher risk, leading to increased premiums.

Deductible: The deductible is the amount you agree to pay out-of-pocket before your insurance coverage kicks in. Choosing a higher deductible can result in lower tow truck insurance premiums, but you should carefully consider the financial implications in case of an accident or damage to your vehicle.

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How to Save on Tow Truck Insurance Cost

To find the best tow truck insurance cost for your business, it’s essential to work with our team at to let us shop around and compare quotes from different insurance providers. Doing so will give you a better understanding of the range of prices and coverage options available, helping you to make a more informed decision for your towing business.

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