There are over 30,000 tow truck companies operating in the United States. As the US population continues to balloon and more cars hit the road, those towing continue to thrive!

Since you’re reading this post, you probably already know about the immense opportunity that awaits in the towing industry. What you probably don’t know are the unique intricacies that go into starting a tow operation. In particular, you’re probably curious about tow truck insurance cost.

There are a lot of variables to consider and facts to mull over on the subject of tow truck insurance. Keep reading to take in the key items you need to know!

You’ll Want to Make Sure Your Truck Is Commercially Insured

Owning a tow truck and putting it on your personal auto insurance policy is not going to fulfill your tow truck company insurance needs. Not if you plan on using your truck for commercial purposes.

Any time you’re using something to generate a profit, you need to communicate that to your insurer and expect higher rates since interacting with customers creates new a spectrum of liability.

Tow Truck Insurance Is a Requirement

You can’t drive your car without it being insured. The same holds for your tow truck.

Assessing tow truck insurance costs and buying it (among other insurance policies) is a requirement to conduct commercial operations almost everywhere. And even if some insurance policies are not legally required, believe us when we say that covering yourself when it comes to liability, property damages, and more is worth investing in.

Costs Will Vary

Any source that claims to know how much tow truck insurance will run you (or any form of commercial insurance) is giving you a general perspective. That’s because there is a litany of factors that pertain to only you that will affect your price.

The best way to discern how much your tow truck insurance will cost is to develop a shortlist of insurers and request a personal quote. Some commercial insurers will let you complete that process online in minutes. Others, particularly if you’re trying to insure a fleet, will have you come into their office to assess your situation.

Your Existing Insurer May Offer Options

Are you already working with a commercial insurer that’s providing you with warehouse coverage? What about liability coverage for your products?

If you are, talk to them about insuring your fleet. They may have commercial vehicle policies you can bundle with your existing coverage. They may even be willing to create a new policy for you!

Understand Your Tow Truck Insurance Cost Before Diving Into Business

We’ve seen entrepreneurs not think critically about tow truck insurance cost get into the tow truck business and realize that insurance rates make their business non-feasible.

Insurance can be expensive. Take in information now, shop quotes before investing in vehicles, and you’ll have a much better chance at success.

For more on starting a tow truck company and related topics, explore additional content on our blog. is a tech support company with a vision to inform, empower, and showcase Tech Entrepreneurs in order to bridge the gap between starting and becoming successful Tech Entrepreneurs.

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