Minnesota Tow Truck Insurance

Minnesota towing requirements and registration

Minnesota provides an intrastate motor-carrier certificate or permit exemption for properly equipped tow trucks picking up disabled or wrecked vehicles. It also covers vehicles moved under a towing order from an authorized public employee. The exemption applies only while you’re exclusively performing qualifying transportation. See Minnesota Statutes, section 221.025.

Transporting running vehicles, auction purchases, or other property can bring different requirements. If your business must register as a Minnesota motor carrier of property, MnDOT requires your insurer to file Form E showing at least $100,000 bodily injury per person, $300,000 bodily injury per accident, and $50,000 property damage. Check the MnDOT motor-carrier registration guidance to confirm how your services are classified before you begin.

Work across state lines can also bring federal requirements. FMCSA treats qualifying emergency tows differently from later vehicle moves. Its federal towing guidance and insurance filing requirements explain the distinction. Local permits and customer contracts may add coverage requirements as well.

Coverage for a Minnesota towing business

• Commercial auto liability helps cover injuries and damage to others when an insured truck causes an accident.
• Physical damage helps pay for covered damage to your tow truck. Review comprehensive and collision, equipment values and deductibles.
• On-hook towing coverage helps protect customer vehicles during towing or transport, subject to the policy’s terms.
• Garagekeepers legal liability helps cover damage to customer vehicles at an insured storage or service location when your business is legally responsible.
• General liability or garage liability helps cover certain claims arising from your business operations, such as an injury to a customer at your yard.
• Workers’ compensation helps cover employees’ work-related injuries and illnesses.

Describe all your services, including roadside assistance, recovery, repairs, and storage. Heavy wreckers, rotators, repossession, and multi-car transport may need additional insurer approval.

Does Minnesota require workers’ compensation?

Minnesota generally requires workers’ compensation even if you have only one part-time employee. Employers must buy coverage or qualify for approved self-insurance unless a specific exception applies. See the Minnesota DLI coverage requirements.

Include everyone who works in the business when you review coverage: drivers, helpers, dispatchers, owners, and family members. Owner coverage and exemptions depend on the circumstances. A 1099 alone doesn’t establish that someone is an independent contractor.

Customer vehicles: from the tow to the storage lot

A vehicle can reach your yard safely and then be damaged while it’s stored overnight. Towing and storage may fall under different coverages, so review both before accepting vehicles into your care.

Look at on-hook coverage and garagekeepers coverage together. Tell us about each storage location and the largest number and combined value of vehicles you might hold.

We’ll help you check how fire, theft, vandalism, and weather damage are covered. Legal-liability coverage generally applies when your business is legally responsible for a covered loss. Direct-coverage options have different terms.

Roadside-network and customer requirements

Agero, HONK, Allstate Roadside, GEICO, AAA and Nation Safe Drivers each set provider insurance requirements. Copart and other auction customers may need coverage for different transport activities.

Send us the current requirements from your network, club, or customer. We’ll check the requested limits, certificates, workers’ compensation, and additional-insured endorsements as part of your quote.

How much does Minnesota tow truck insurance cost?

Your trucks, driving records, claims, services, travel area, and limits all influence your premium. Where you keep the trucks and store customer vehicles also matters.

Compare the same limits and deductibles before deciding which quote offers the best fit. We’ll check available prior-insurance, multi-policy, and telematics savings, then explain the annual cost and payment schedule.