What is tow truck insurance?

Towing vehicles presents substantial risk, as drivers are often in difficult positions on the sides of roadways. Whether hooking up vehicles in one of Texas’s major cities, or towing vehicles for miles on remote roads, operators need to make sure they’re well protected. One aspect of that is getting tow truck insurance.

Tow truck insurance is specialized commercial vehicle coverage tailored for the needs wreckers. Policies usually cover tow trucks, drivers, the business, and vehicles that are towed.

Who in Texas needs to have towing insurance?

Obtaining a tow truck permit in Texas certain minimum insurance coverages. Coverages vary depending on the type of towing, but most wreckers in the state need towing insurance.

The states specific coverage requirements generally are:

  • Incident Management Towing: $500,000 in liability coverage, and $50,000 in on-hook towing coverage.
  • Private Property Towing: $300,000 in liability coverage, and $50,000 in on-hook towing coverage.
  • Consent Towing: $300,000 in liability coverage, and no on-hook towing requirement.

While its usually required to meet these minimums, they aren’t necessarily enough protection for towing operators. Higher limits are broadly recommended, as a single accident might easily exceed these limits. Other coverages are usually recommended, too.

Some examples of businesses that may be required to carry these coverages and want others include

  • Standard towing services
  • Heavy-duty towing services
  • Owner-operators with wreckers
  • Auto repair shops with wreckers
  • Vehicle impound lots

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What coverages are offered in towing insurance policies?

Towing insurance bundles multiple types of coverages together, offering protection against multiple risks that wrecker operators face. Some important and oft-included coverages are:

  • Physical Damage Coverage: Usually covers damage sustained by the insured wrecker(s) that’s from collisions involving another vehicle.
  • Comprehensive Coverage: Usually covers damage to the wrecker that’s from other causes, such as animal strikes, falling branches, fires or theft.
  • Tow Truck Liability Coverage: Usually covers injuries and property damage to third parties that occur during collisions with the insured wrecker.
  • Medical Payments Coverage: Usually covers medical expenses incurred as a result of treating collision-caused injuries.
  • On-Hook Towing Coverage: Usually covers damage to vehicles that are being towed while hooked up to the wrecker.
  • Garage Services Coverage: Usually covers damage to towed vehicles when they aren’t hood up to a wrecker, such as when in an impound lot or at a service center.
  • Uninsured/Underinsured Motorist Coverage: Usually covers collisions with other drivers who lack adequate insurance.

What insurance protections do heavy-duty wreckers need?

Heavy-duty wreckers need many of the same insurance coverages that are found in standard towing policies, but some towing policies might not cover heavy-duty wreckers.

Operators with heavy-duty wreckers should check the terms and conditions of a policy, to make sure it does cover large-truck towing. An insurance agent who specializes in towing policies will be able to assist with checking terms and conditions.

Tow Truck Insurance Texas

How much does it cost to insure a wrecker?

The cost to insure a wrecker can vary considerably, as premiums are affected by many different factors. Some of the details that affect cost include

  • Number of tow trucks being insured
  • Make, model, and year of each tow truck
  • Type of towing
  • General area served
  • Types of roads served
  • Operator’s experience and driving record

To find out how much insuring a specific wrecker will cost, operators can talk with an independent agent. Independent insurance agents aren’t connected to just one insurance company, but can compare quotes from several companies to find the best option.

Where can towing services in Texas get tow truck insurance?

If you operate a tow truck in Texas and need to insure it, reach out to the independent insurance agents of Wise Insurance Group. Our agents will help you review coverage requirements, and then find the best tow truck insurance policy that meets your particular needs.

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