Texas Tow Truck Insurance

Texas tow truck insurance requirements

The Texas Department of Licensing and Regulation (TDLR) sets the following minimums by tow truck permit category. The amounts apply per truck, per incident.

Use TDLR’s tow truck permit requirements to confirm your category. These are permit minimums. Customer contracts, vehicle values, and your travel area can call for higher limits or additional coverage.

Consent towing can still expose you to a claim for damage to a customer’s vehicle. Review on-hook coverage even though this permit category doesn’t set a cargo or on-hook minimum. A roadside network or customer may require it.

What coverage does a Texas towing company need?

• Commercial auto liability: Helps cover injuries and property damage you cause to others in an accident involving an insured truck.
• Physical damage: Helps pay for covered damage to your own tow truck. Review comprehensive, collision, equipment values and deductibles.
• On-hook or customer-vehicle coverage: Helps protect vehicles in your care during towing or transport.
• Storage coverage: Addresses customer vehicles kept at an insured yard or service location.
• General liability or garage liability: Helps cover certain claims arising from your premises and business operations.
• Workers’ compensation: Helps cover employees’ work-related injuries and illnesses.

Some coverage names differ in Texas. Progressive calls its Texas on-hook protection garagekeepers legal liability, while storage-location coverage addresses vehicles kept at a facility. We’ll help you check what applies during loading, towing, unloading, and storage, including the limits and deductibles. See Progressive on-hook coverage and storage coverage.

Insurance documents for your TDLR application

Your company needs a towing company license and a permit for each truck. The business name and address on the certificate of insurance must exactly match your application. The certificate must also include the required cancellation-notice provision. See the TDLR company licensing instructions.

Give us your legal business name, any DBA, truck information, and permit categories. Using the same information across your application and insurance documents helps avoid delays from mismatched details.

Plan your insurance start date alongside the company, driver, truck, and storage-facility approvals you need. Tell us when you add a truck or change services so we can check the policy before that work begins.

Does Texas require workers’ compensation?

Most private Texas employers can choose whether to carry workers’ compensation. Certain government contracts require it, and other customers may require it as a condition of accepting work. Review your employees, contracts, and owner coverage before deciding. The Texas Department of Insurance employer guidance explains your responsibilities.

Workers’ compensation provides benefits for covered job injuries and legal protections for employers. If you choose not to carry it, different reporting duties and liability for employee injuries can apply. Occupational accident insurance has different benefits and terms; it isn’t interchangeable with workers’ compensation.

Coverage for roadside networks and auction work

Agero, HONK, Allstate Roadside, GEICO, AAA and Nation Safe Drivers may request specific limits, certificates and endorsements. Auction customers such as Copart may also require coverage for vehicle transport or storage.

Send us the current requirements from the organization or AAA club you plan to work with. We’ll help identify any coverage or limits you need beyond the TDLR minimums.

An additional-insured request needs to be supported by your policy. Writing it on a certificate doesn’t create that coverage or add cancellation rights. Texas certificate guidance explains the rules, and our certificate of insurance guide shows which details to review.

How much does Texas tow truck insurance cost?

Your permit category, trucks, drivers, claims, location, and travel area affect the premium. A local rollback business can have different coverage needs from an operation that handles heavy recovery, repossessions, or several vehicles at once.

Compare quotes with the same limits and deductibles. Then check the total premium, down payment, installments, and fees. We’ll also look for telematics, prior-insurance, or multi-policy savings you may qualify for.