New Venture Tow Truck Insurance

Can a new towing company get insurance?

Yes. Insurers consider new towing businesses, with eligibility and pricing based on the application. Your driving record, towing experience, truck, location and planned services all help determine the options available.

If you previously worked for another towing company, include that experience. Training, years behind the wheel and the equipment you operated can give the insurer a fuller picture of your background.

Let your agent know whether this is your first business policy or whether you previously insured the operation. Those are different situations for the insurer to review.

What insurance do you need for your first tow truck?

• Commercial auto liability: Helps cover injuries and property damage you cause to others in an accident involving your insured truck.
• Physical damage: Helps protect your own truck. A lender or leasing company may require comprehensive and collision.
• On-hook coverage: Helps cover customer vehicles during towing or transport.
• Garagekeepers: Addresses customer vehicles at an insured storage or service location. The coverage basis determines how it responds.
• General or garage liability: Helps cover certain claims involving your premises and business operations.
• Workers’ compensation: Helps cover employees’ work-related injuries and illnesses.

Your state, permits and customer contracts help determine the limits and documents you need. Review these requirements before selecting a policy.

Describe the services you plan to offer

A business that handles local breakdowns can need different coverage from one performing repossessions, heavy recovery or auction transport. Include all planned services in your application:

• Roadside assistance, such as jump-starts and tire changes.
• Breakdown and accident towing.
• Private-property removal and repossession.
• Auction or multi-car transport.
• Overnight storage, repairs or heavy recovery.

Also identify the types of vehicles you will handle and your travel area. Update your agent before adding a driver, opening a lot or expanding into new work.

Plan for employees and owner coverage

Review workers’ compensation before hiring drivers, helpers, dispatchers or office staff. Requirements vary by state, and part-time or family employees may count.

An owner’s coverage depends on the business structure and state rules. Discuss whether you want protection for your own work injuries and whether a customer requires evidence of coverage.

Our towing workers’ compensation guide covers the state differences. Official resources include the Illinois Workers’ Compensation Commission and Ohio’s state-fund requirements.

How can a new towing business save on insurance?

Compare available insurers using the same limits and deductibles. Ask about prior-insurance, multi-policy and payment options, including any personal auto insurance history the insurer considers.

Eligible telematics programs may offer savings and tools to review driving activity. Program rules vary, so review participation requirements and how driving data can affect the policy. See Progressive’s commercial discounts and Snapshot ProView information.

Compare the total premium, first payment and installments. A higher deductible may reduce the premium, but choose an amount the business can fund if a covered claim occurs.

What to have ready for your quote

• Legal business name, ownership details and address.
• Truck year, make, model, VIN and equipment value.
• Driver information and towing experience.
• Garaging location, services and travel radius.
• Storage locations and expected employees.
• Desired start date and any lender or customer insurance requirements.

Include the roadside networks, police rotations or auction customers you plan to serve. Their requirements can affect your coverage and certificates.

How quickly can coverage start?

Same-day quotes may be available for complete, eligible submissions. Driver reports, special operations and insurer review can take additional time.

After you select a quote, your agent will guide you through approval, payment and the required coverage documents. Coordinate any licensing, filing or network approvals with your planned start date.