Tow truck insurance

What does tow truck insurance cost?

For new Progressive Commercial customers in 2025, the median monthly cost came to $355. The median is the middle price, and it is more representative than the average here because a few expensive policies push the average up.

The average monthly figure was $606. Progressive notes that many factors shape what wrecker insurance costs, so the price you get may not match these numbers.

Covering the cars you tow

You can add on-hook towing insurance to your liability policy, and it covers a customer's vehicle during the time you are towing it. If a towed car is damaged through theft, fire, or vandalism, this coverage pays for the repairs.

Who needs a commercial policy?

Personal car insurance usually doesn't cover work use, so you may need a commercial policy. That's true even if towing is only a side job for you.

Required liability limits

If you tow for hire with a truck over 10,000 pounds, federal rules require at least $750,000 in liability coverage. Some places ask for more, so it's worth checking your local rules too.

The same federal rules do not apply to trucks towing company or customer vehicles on private property. Those trucks still have to satisfy their state's minimum vehicle liability limits.

Liability insurance steps in to help with costs if your truck injures someone or damages property in a wreck. It covers both bodily injury and property damage. When your tow truck is at fault in a crash, bodily injury liability takes care of the other party's medical bills and legal costs.

Protecting your own truck and passengers

Different coverages protect your truck and help pay for injuries to you or your passengers:

• Collision: helps cover repair costs if your truck strikes something, like another vehicle or a utility pole.
• Comprehensive: guards the truck against theft, fire, vandalism, weather damage, and animal collisions.
• Medical payments (MedPay): pays medical bills for you and your passengers when they suffer injuries in an accident or another auto-related event.
• Uninsured and underinsured motorist (UM/UIM): covers you and your passengers when an uninsured or underinsured driver injures you, including hit-and-run situations.

Vehicles kept on your lot

Garagekeepers legal liability covers customer vehicles while they sit parked on your property. It pays when damage comes from vandalism, theft, or a collision.

This coverage goes by the name storage location insurance in Texas and Virginia. When you operate more than one location, each one needs its own insurance.

More coverage worth knowing

Roadside general liability helps protect you if someone is hurt, or their property is damaged, while you're helping them at the roadside.

Workers' compensation can shield employers from lawsuits tied to injury or illness claims that happen on the job. Most states require it.

Questions people often ask