When it comes to running a tow truck business in Illinois, understanding the costs associated with tow truck insurance is crucial for both new and experienced operators. Tow truck insurance can vary significantly based on several factors, including the county where your business is located, the type of operations you run, and your history as a driver and business owner. In this article, we’ll provide an overview of tow truck insurance rates in Illinois, the factors that influence pricing, and practical tips for reducing your premiums.
Tow Truck Insurance Costs in Illinois by County
The cost of tow truck insurance in Illinois can vary significantly depending on the county in which your business operates. Factors such as the local economy, accident rates, and crime statistics play a major role in determining your premiums. Below, we’ve provided an average general breakdown of monthly cost for tow truck insurance based on the 8 most populous counties in Illinois.
Tow Truck Insurance Cost in Illinois
Rates are as of 2025 and based on favorable rating conditions.
| County | Sample Cities |
Average Monthly Cost (Per Tow Truck) |
|---|---|---|
| Cook County |
Chicago, IL 60601 Evanston, IL 60201 Oak Park, IL 60301 |
$593 per month |
| DuPage County |
Naperville, IL 60540 Downers Grove, IL 60515 Wheaton, IL 60187 |
$491 per month |
| Lake County |
Waukegan, IL 60085 Mundelein, IL 60060 Gurnee, IL 60031 |
$469 per month |
| Will County |
Joliet, IL 60431 Bolingbrook, IL 60440 New Lenox, IL 60451 |
$470 per month |
| McHenry County |
Crystal Lake, IL 60014 McHenry, IL 60050 Algonquin, IL 60102 |
$503 per month |
| Kane County |
Elgin, IL 60120 St. Charles, IL 60174 Geneva, IL 60134 |
$512 per month |
| St. Clair County |
Belleville, IL 62220 O'Fallon, IL 62269 Shiloh, IL. 62269 |
$487 per month |
| Madison County |
Granite City, IL 62040 Edwardsville, IL 62025 Alton, IL 62002 |
$406 per month |
Please be advised that the rates provided above are based on favorable rating factors, which may include, but are not limited to, the driver’s age, the type and age of the vehicle, prior insurance history, and other underwriting criteria. Additionally, these rates may reflect any applicable discounts, which are subject to change based on the specific details of the policyholder’s situation and the insurer’s guidelines.
How Tow Truck Insurance Rates Are Calculated
Tow truck insurance rates in Illinois are determined by a variety of factors that reflect both the risk involved in operating a tow truck and the specifics of your business. Here are some of the key factors that affect the cost of tow truck insurance:
- Number of Drivers, Age, and MVR
- Tow truck operators with a larger number of drivers will generally see higher premiums. The age of drivers is also a factor, as younger drivers typically represent higher risk to insurers. A clean Motor Vehicle Record (MVR) is crucial—drivers with a history of accidents or violations will face higher rates.
- Number of Trucks and Radius of Operations
- The number of tow trucks in your fleet plays a significant role in determining premiums. A larger fleet means more risk for the insurer. Additionally, the radius of operations (how far you typically tow vehicles) can affect your premiums. A wider operating radius, especially if it extends to high-traffic or high-risk areas, may increase insurance costs.
- Annual Mileage
- The more miles you put on your tow trucks each year, the higher your premiums may be. Higher mileage increases the likelihood of accidents, and insurance companies charge accordingly.
- Garaging Zip Code
- Location greatly influences insurance rates. Tow trucks that are garaged in areas with higher instances of accidents, crime, or fraud will likely face higher premiums. Urban areas, especially those with high traffic and crime rates (e.g., Chicago), tend to result in higher insurance costs. Read more about Illinois Crash Statistics here.
- Prior Insurance History
- Maintaining continuous insurance coverage without any lapses demonstrates reliability and responsibility. Businesses with a good history of insurance coverage are typically eligible for lower premiums. Conversely, a history of gaps in coverage may lead to higher rates.
- DOT Safety Score (If Applicable)
- If your tow truck business is regulated by the Department of Transportation (DOT), your DOT safety score plays a role in determining your premiums. A high safety score, indicating a good safety record, can help lower your rates, while a poor score may increase your premiums.
- Coverage Requirements
- The level of coverage and the insurance requirements you wish to meet directly impacts your insurance rates. Higher coverage limits, such as $750,000 in liability coverage for ICC Authority, will cost more than lower coverage limits. Additional coverage options like on-hook towing and garage keepers insurance will also add to your premium costs.
How Tow Truck Drivers Can Save Money on Insurance
Tow truck operators can take several steps to reduce their insurance premiums, including:
- Ensure Drivers Are of Age and Have Good MVRs: Hiring experienced drivers with clean driving records can significantly lower premiums.
- Open Your Business in a Safe Area: Choose a location with low accident rates, minimal crime, and fewer risks associated with towing operations. Avoid high-risk urban areas when possible.
- Maintain Continuous Insurance Coverage: Having no lapses in coverage shows responsibility and can help reduce your premiums. Insurers see businesses with a history of continuous coverage as less risky.
- Install Telematics Devices: Telematics devices track driving behavior, such as speed, braking, and driving habits. By using these devices, you can qualify for discounts based on safe driving practices.
Discounts Available for Tow Truck Insurance
At Insured ASAP, we are experts in providing tow truck insurance in Illinois and Indiana. We work with some of the nation’s largest providers to offer you the best rates and coverage. We also offer a variety of discounts to help reduce your premiums, including:
- Prior Insurance Discount: If you’ve had continuous insurance coverage with no gaps, you may be eligible for a discount.
- Multi-Policy Discount: Bundling your tow truck insurance with other policies (e.g., commercial property, general liability, workers’ compensation) can result in savings.
- Telematics Discount: By installing telematics devices in your trucks, you can save money based on your drivers’ safe driving habits. Telematics devices monitor speed, braking patterns, and other factors that can help reduce accidents.
- EFT Discount: Set up automatic payments through Electronic Funds Transfer (EFT) and enjoy a discount on your premiums.
- Paid in Full Discount: Pay your premiums in full up front, and you could receive a discount of 15% or more.
- Safe Driver Discounts: If your drivers have a clean driving record, you may qualify for additional discounts.
Why Choose Insured ASAP for Your Tow Truck Insurance?
At Insured ASAP, we understand the unique needs of tow truck operators in Illinois and Indiana. Our team is well-versed in the specific requirements for tow truck insurance, and we are committed to providing our clients with the best coverage at competitive prices. We work with leading insurance providers to offer tailored insurance policies, and we can help you secure discounts that make your coverage more affordable.
