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Progressive offers insurance for businesses operating wreckers, rollbacks, and flatbed tow trucks. The coverage you need depends on the work you do, the equipment you use, and the requirements in your customer contracts.
We’re proud Progressive agents and have worked with them and other tow truck insurers for more than 10 years. We’ll help you compare coverage, premiums, and payment plans, and check the discounts available for your business.
Starting a towing business or reviewing your policy? Request a tow truck insurance quote, or call or text (708) 233-4848.
Coverage options for your towing business · What affects Progressive tow truck insurance rates? · Discounts and payment options worth reviewing · A sample quote with a $5,978 lower annual premium · Snapshot ProView fleet-management tools · Tow truck insurance resources by state
Coverage options for your towing business
Your insurance should account for your trucks, customer vehicles in transit, vehicles at your yard, and the roadside services you provide. We’ll review those needs with you, along with the insurance requirements in your contracts.
| Coverage | What the coverage does |
|---|---|
| Commercial auto liability | Helps pay covered injury and property-damage claims when your business is responsible for an accident involving an insured vehicle. |
| Physical damage | Helps pay for covered damage to your tow truck. The comprehensive, collision or other options you select determine the protection, limits and deductibles. |
| On-hook towing | Helps pay for covered damage to customer vehicles during towing, as defined by your policy. |
| Garagekeepers | Addresses covered damage to customer vehicles at an insured storage or service location. Legal-liability coverage generally requires your business to be legally responsible; other options may respond differently. |
| General liability or garage liability | Helps cover certain injury and property-damage claims arising from your business operations beyond driving the truck. The policy needs to match your services. |
If you have employees, include workers’ compensation in the review. Motor clubs, customers, and permit authorities may request specific limits or documents. Send us those requirements with your quote request.
Our tow truck insurance coverage guide and Progressive’s towing coverage overview explain more about the options. Availability depends on your state, vehicles, drivers and services.
What affects Progressive tow truck insurance rates?
Your premium reflects more than the truck you drive. Insurers consider:
- Location and garaging: where trucks are kept overnight and the territory you serve.
- Vehicles and equipment: truck type, age, value and specialized equipment.
- Drivers: experience, driving records and the number of drivers on the policy.
- Services: roadside towing, recovery, repossession, storage and other work performed.
- Use and mileage: operating radius and estimated annual miles.
- Business and insurance history: years in operation, prior coverage, claims and relevant towing experience.
- Coverage: liability limits, deductibles and protection for your trucks and customer vehicles.
Provide accurate, current information so the quote reflects your business. If you’re just getting started, include your previous towing experience and insurance history along with the company’s start date.
Why can insurance cost more even with a clean driving record?
A clean driving record helps, but it’s only one part of the price. Roadside work, accident recovery, and damage to customer vehicles also affect the risk an insurer takes on. The potential cost of those claims matters when it sets your premium.
Broader industry results help explain some of that pressure. S&P Global’s analysis of 2024 results found that commercial-auto claims and operating expenses exceeded premium income across the market. Its analysis of Progressive’s 2024 results reported a profit for Progressive’s commercial-auto business. These historical results cover more than towing and don’t determine what you’ll pay today.
A coverage and discount review can help you compare the options available for your business. Our tow truck insurance cost guide explains other factors that influence pricing.
Discounts and payment options worth reviewing
EFT and automatic payments
Automatic bank payments may reduce your premium and installment fees. In the sample below, choosing EFT lowered the annual premium from $11,322 to $10,767. Each remaining installment included a $12 fee with EFT, compared with $30 on that quote’s standard plan.
Compare the complete payment schedules, including fees. Available savings depend on your policy and payment plan.
Snapshot ProView
Snapshot ProView uses a device in your vehicle to collect driving information and may provide a participation discount. The sample quote below includes the initial 5% discount only.
April 2026 program information describes higher participation discounts of up to 20% for qualifying businesses. Eligibility depends on the state, vehicle, type of work, and program rules. A higher participation discount replaces the initial level. It isn’t an additional 20% added to the initial 5%.
Your vehicle must be compatible, and the device needs to remain installed and report as required to keep the discount. Driving data may also increase or decrease your renewal premium. We’ll review the applicable terms and available discount with your quote.
Continuous insurance and prior auto coverage
Maintaining continuous insurance may qualify you for savings. Illinois program information describes a benefit for a qualifying year of auto liability or physical damage coverage. Have your prior policy documents ready so we can check eligibility.
Your personal auto insurance history may help when you start a towing business. It was considered in this sample, although it doesn’t always produce a separate discount. Program rules determine how personal and commercial history count, without counting the same coverage twice.
Multi-Product discounts
An eligible business policy, such as general liability, may qualify you for a Multi-Product discount. We’ll check your existing policies and documents against the program’s requirements.
Workers’ compensation alone doesn’t establish eligibility for this discount. When considering an additional policy, review the protection it provides and the combined cost. Progressive’s commercial auto discount overview has more information.
Paid-in-full and installment plans
The sample includes a $9,396 paid-in-full premium and a $10,767 EFT installment option. Paying in full is a separate payment choice. You don’t subtract that difference again from the EFT premium.
Compare the full policy cost and fees, then choose a payment schedule that fits your business’s cash flow.
A sample quote with a $5,978 lower annual premium
In this example, reviewing available discounts and selecting automatic bank payments reduced the annual premium from $16,745 to $10,767. That’s a difference of $5,978, or 35.7%, before installment fees.
The sample quotes are dated October 3, 2026 and use different payment options. They reflect one business’s results. Your premium and savings may differ.
The lower premium came from the discount review and payment choice. We kept the driver, truck, garaging address, travel radius, mileage, limits, and deductibles the same, and confirmed that the other business information was unchanged.
Premium and payment comparison
| Premium or payment | Original standard plan | Revised EFT plan |
|---|---|---|
| Annual premium before installment fees | $16,745.00 | $10,767.00 |
| Initial payment | $2,791.40 | $1,076.70 |
| Remaining installments | 10 payments of $1,430.36 | 9 payments of $1,088.70 |
| Fee included in each remaining installment | $35.00 | $12.00 |
| Total payments, including installment fees | $17,095.00 | $10,875.00 |
Review the annual premium, installment fees, and payment schedule together. A smaller down payment may help your cash flow without reducing the total cost.
Before EFT, the revised quote was $11,322. Automatic bank payments reduced it by $555 to $10,767. The original quote also offered EFT at $15,922. Comparing that option on both quotes gives a premium difference of $5,155, or approximately 32.4%.
Only the initial 5% Snapshot ProView discount is included in the revised quote. A higher discount hadn’t been confirmed and isn’t included in the savings shown.
Part 1: Premiums and payment plans
The original standard-payment plan and revised EFT plan show the difference in annual premium, installment fees, and payment timing.
Part 2: Matching vehicle and coverage details
Both quotes list the same 2020 Freightliner M2 rollback, garaging ZIP code, 50-mile operating radius, and 40,000 to 59,999 annual miles.
The quotes include a $500,000 combined liability limit for covered bodily injury and property damage, plus $25,000 in on-hook coverage with a $1,000 deductible. The displayed uninsured and underinsured motorist limits also match.
Your business or contracts may require different limits. These quotes don’t include premiums for comprehensive or collision on the tow truck, or separate general liability, garagekeepers, or workers’ compensation policies.
Part 3: Discounts and insurance history reviewed
We reviewed the business’s existing policies, prior auto insurance, and payment options. That review included:
- Multi-Product: qualifying additional business policies.
- Continuous insurance: prior coverage maintained without a lapse.
- Personal auto insurance history: the owner’s prior coverage.
- Snapshot ProView: the initial 5% discount included in the quote.
- EFT: automatic bank-payment savings.
Progressive lists Multi-Product on the third quote page. The other items describe the factors we reviewed. Some insurance-history factors overlap, so these are not five separate discounts to add together.
Have a current quote you’d like us to review? Send it over so we can check the coverage and available savings. Request a tow truck insurance review.
Snapshot ProView fleet-management tools
Snapshot ProView may include access to a fleet dashboard on your phone or computer at no additional dashboard charge. The 2026 program information includes participating small fleets. We’ll help you confirm dashboard availability and device terms for your policy.
- Vehicle location: view a truck’s last reported position. Updates are described as approximately every 30 seconds while the vehicle is running, with possible delays from connectivity.
- Trip history: review routes, vehicle use and unnecessary mileage.
- Geofencing alerts: receive notifications when a truck enters or leaves a designated area, such as your storage yard.
- Driving reports: review hard braking and rapid acceleration to support driver coaching and safety discussions.
These tools can help you review vehicle activity and coach your drivers. Location updates may be delayed, and safety results vary. The device collects information such as speed, location, trip times, and vehicle data. Progressive may use that information for renewal pricing and claims under the program terms. Review those terms with your drivers before enrolling.
Smart Haul for qualifying operations
If you use an electronic logging device, or ELD, ask about Progressive’s Smart Haul program. It serves certain trucking operations and is separate from Snapshot ProView.
An ELD alone doesn’t make a towing business eligible. We’ll check your services, equipment, and the program’s requirements to see whether it’s available to you.
Tow truck insurance resources by state
Your state, services, and customer contracts affect the insurance you need. Read your state guide and include any contract or permit requirements with your quote request.
For Illinois registration and filings, see our Illinois tow truck insurance requirements guide. You can also review our tow truck insurance discounts guide for other savings considerations.
Frequently asked questions
Does Progressive consider new towing businesses?
Yes. Progressive considers eligible new towing businesses. Your experience, vehicles, drivers, services, and insurance history help determine the coverage available and its cost.
Is Progressive always the lowest-cost option?
No. The lowest-priced insurer varies by business. Compare each quote’s coverage, limits, deductibles, and payment fees before choosing.
Are other insurance options available?
You may have other options depending on your business and location. In our experience, some insurers become more accessible after about three years in business with a clean claims history. Each insurer sets its own eligibility requirements.
Will my premium match the $10,767 sample?
Your premium may be different. The sample reflects one business’s vehicles, drivers, location, services, history, and coverage choices on October 3, 2026.
Does the sample include a 20% Snapshot ProView discount?
No. It includes the initial 5% discount only. A higher discount would need to be confirmed before appearing in a revised quote.
Were the coverages changed to achieve the lower premium?
No. The driver, truck, address, limits, deductibles, and other business information stayed the same. The lower premium followed a discount review and a change in payment plan.
Does on-hook coverage protect the tow truck itself?
No. On-hook coverage addresses customer vehicles during a covered tow. Physical damage protects your own truck against covered losses. If you keep customer vehicles at your yard, review garagekeepers or storage coverage as well.
Request a Progressive tow truck insurance quote
Send us your current quote or share your vehicle, driver, and business information. We’ll help you compare coverage, available discounts, and payment options, whether you’re starting a towing company or reviewing an existing policy.
Request a tow truck insurance quote, or call or text (708) 233-4848.
Coverage, discounts and eligibility vary by state, program and business. Policy terms, conditions and exclusions apply. Sample premiums are illustrative and do not guarantee coverage or savings. A quote request, call or text does not bind or change insurance. Insured ASAP is an independent agency that represents Progressive. Progressive and Snapshot ProView are trademarks of their respective owners.
