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Texas tow truck insurance helps protect your trucks, your customers’ vehicles and your business. Whether you provide consent towing, private-property removal or incident-management services, your coverage should fit the work you perform.
With more than 10 years of towing insurance experience, Insured ASAP helps new businesses, owner-operators and established fleets compare available insurers and meet their insurance requirements.
Get a Texas Tow Truck Insurance Quote
Texas tow truck insurance requirements
The Texas Department of Licensing and Regulation (TDLR) sets insurance minimums based on the tow truck’s permit category. These limits apply per truck, per incident.
| Permit category | Liability | Cargo or on-hook |
|---|---|---|
| Consent towing | $300,000 | No minimum under this permit rule |
| Private-property towing | $300,000 | $50,000 |
| Incident-management towing | $500,000 | $50,000 |
See TDLR’s tow truck permit requirements for the categories and current rules. Your contracts, vehicle values and operating area may call for higher limits or additional coverage.
On-hook coverage is worth reviewing for consent towing, too. It helps protect a customer’s vehicle during transport, and a roadside network or customer may require it even when the permit rule does not.
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.
Coverage names can vary in Texas. Progressive calls its Texas on-hook protection garagekeepers legal liability, while coverage for stored customer vehicles uses storage-location terminology. Review what the policy covers during loading, towing, unloading and storage, along with its limits and deductibles. Progressive on-hook coverage and storage coverage.
Insurance documents for your TDLR application
Your towing company needs its company license and a permit for each truck. The name and address on your certificate of insurance must exactly match your application, and the certificate must include the required cancellation-notice provision. TDLR company licensing instructions.
Provide your legal business name, any DBA, truck details and permit categories when requesting a quote. Keeping those details consistent helps your agent prepare the insurance documents and reduces avoidable application delays.
Plan the insurance start date alongside your company, driver, truck and any storage-facility approvals. Keep coverage current as you add trucks or change your services.
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 make it a condition of doing business. Review your employees, contracts and owner coverage before deciding. Texas Department of Insurance employer guidance.
Workers’ compensation provides benefits for covered workplace injuries and offers employers legal protections. A business that operates without it can face different reporting duties and liability for employee injuries. Occupational accident insurance has different benefits and terms, so compare it carefully with statutory 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 your agent the current requirements from the organization or AAA club you plan to work with. This helps identify any coverage needed beyond the TDLR permit minimums.
If a customer requests additional-insured status, the policy must provide that protection. A certificate summarizes coverage; changes to coverage or cancellation rights must be supported by the policy or applicable law. Texas certificate guidance. Our certificate of insurance guide explains what to check.
How much does Texas tow truck insurance cost?
Your permit category, trucks, drivers, claims history, location and travel radius all affect the premium. A local rollback operation can have different insurance needs from a company handling heavy recovery, repossessions or multiple vehicles at once.
Compare quotes using the same limits and deductibles. Ask about eligible telematics, prior-insurance and multi-policy discounts, then review the total premium, first payment and installment schedule.
Get a Texas tow truck insurance quote
We help towing businesses throughout Texas, including Houston, Dallas–Fort Worth, Austin and San Antonio. New companies are welcome, including owners starting with one truck and no prior commercial policy.
Have your VINs, truck values, driver details, business location and desired start date ready. Include your towing experience, storage locations and any heavy recovery, repossession or auction work so the quote reflects your operation.
We compare available options and help you choose coverage. Eligible businesses may receive a same-day quote, with coverage starting after insurer approval and completion of the required steps.
Compare Texas Tow Truck Insurance Quotes
Read our workers’ compensation guide and roadside-network requirements.
