How Much Does Tow Truck Insurance Cost?

Tow truck insurance costs in Illinois by county

We’re updating the county figures in the table to reflect current pricing. Your own rate will depend on your vehicles, drivers, services and coverage, along with the insurer’s eligibility requirements. Request a quote for a price based on your business.

Use the table to help plan your budget. Your quote will show the coverage included, the policy term and how payments are scheduled.

What affects tow truck insurance cost?

Your trucks and equipment

The number, type and value of your trucks affect your premium. A wheel-lift wrecker and a heavy-duty rotator have different equipment and repair costs, and insurers take those differences into account.

Include permanently installed equipment, modifications and leased trucks in your quote request. If you finance a truck, send us your lender’s physical-damage and deductible requirements as well.

Your drivers and experience

Insurers look at driving records, claims and relevant experience. List everyone who will drive your trucks and tell us about their towing background.

A new company can still have experienced drivers. Make sure your application includes that experience, along with the business’s operating and insurance history.

Your location and services

Where you keep your trucks, how far you travel and the services you offer all affect pricing. Local breakdown towing presents different risks from heavy recovery, repossession or multi-car transport.

Tell us about roadside assistance, overnight storage, repairs and trips across state lines. Your quote should account for all the work you take on.

How coverage changes the price

Your towing business may need several types of coverage:

• Commercial auto liability for covered injuries and property damage caused to others.
• Physical damage for your own insured truck.
• On-hook coverage for customer vehicles during covered towing or transport.
• Garagekeepers for customer vehicles at an insured storage or service location.
• General or garage liability for covered business and premises-related claims.
• Workers’ compensation for employees’ work-related injuries and illnesses.

Check that the quotes you’re comparing include the same coverages and limits. A commercial auto quote alone won’t show the cost of adding protection for customer vehicles or employees.

Your limits need to account for state requirements, customer contracts and the value of vehicles you handle. See our Illinois tow truck insurance requirements and roadside-network insurance guide for the requirements that may apply to your work.

Choosing a deductible

A higher deductible may reduce your premium, but you’ll pay more toward a covered loss. Weigh the savings against the amount your business could pay after a claim, and check your lender’s or customer’s requirements.

Ask how the on-hook and garagekeepers deductibles apply if several customer vehicles are damaged in the same incident.

What does insurance cost for a new towing business?

You can request coverage for a new towing business before you have a commercial insurance history. Insurers will look at your trucks, drivers, location and planned services to determine eligibility and price.

Have your truck information, driving experience and planned start date ready. Our new towing business guide walks you through preparing your first application.

Discounts and payment options to review

You may qualify for prior-insurance, multi-policy, paid-in-full or telematics savings. We’ll check the programs available for your state, insurer and business.

Progressive’s commercial insurance discounts and Snapshot ProView information are examples of programs to review. We can help you check eligibility and see how a program changes your quoted total.

Our tow truck insurance savings guide explains other ways to review your costs.

Compare the full cost of each payment plan

A lower down payment can help with cash flow, but it doesn’t always mean a lower overall cost. Compare the annual premium, installments and any policy or financing fees together.

Paying in full may offer savings. Installments spread the payments across the year. We’ll help you compare the total due under each available plan so you can choose what works for your business.

Use the same policy term, limits, deductibles and coverages for each comparison. Confirm which certificates or filings are included, too.