Tow Truck Insurance

What insurance do you need for towing?

When it comes to operating a tow truck, having the right insurance coverage isn’t just a good idea—it’s an absolute necessity. At NITIC, we recommend a well-rounded towing insurance policy that protects your truck, your business, and the vehicles you haul. The most important coverages include Primary Liability Insurance, which is required by law and covers damages or injuries you cause while operating your tow truck. You’ll also need On-Hook Towing Insurance, which protects customer vehicles while they’re hooked to your truck and being transported.

In addition, Garage Keepers Legal Liability Insurance is essential if you store or repair vehicles on your property. You may also consider Physical Damage Coverage to protect your own tow truck from collisions, theft, fire, or vandalism. Depending on your operations, other important coverages could include General Liability, Workers’ Compensation, and Hired and Non-Owned Auto Insurance.

At NITIC, we customize coverage to fit your towing business—whether you’re just starting out or have a full fleet. Our experienced agents understand the towing industry inside and out and will help you meet both legal and broker requirements while protecting your bottom line.

Can I get a tow truck through insurance?

Insurance itself won’t get you a tow truck—but it can absolutely help you protect it, and in some cases, certain coverage types can support you in financing or leasing a tow truck. When you buy or lease a tow truck, most lenders and leasing companies require proof of comprehensive insurance coverage before you can take possession of the vehicle. That’s where NITIC steps in.

We work with owner-operators and small towing companies across the country to secure the proper insurance required to finance or operate tow trucks. You’ll need liability coverage, on-hook towing insurance, and usually physical damage coverage (which includes collision and comprehensive protection for the truck itself). Without these coverages in place, most banks or financing arms won’t release the vehicle to you.

If you’re purchasing your first tow truck, our team at NITIC can guide you through the process and ensure your policy meets both state and lender requirements. Plus, we help you avoid costly gaps in coverage that could leave you exposed. Think of NITIC as your towing insurance partner—not just a policy provider.

What are the requirements to own a tow truck?

Owning a tow truck comes with a unique set of responsibilities—both operational and regulatory. At NITIC, we’ve helped thousands of truckers get their towing operations off the ground, and we know the specific requirements you’ll need to meet. First and foremost, you’ll need to comply with state-level regulations, which often include having a commercial driver’s license (CDL) depending on the size and type of truck. You’ll also need to register your business and get the proper permits or operating authority for towing vehicles, especially if you’re towing across state lines.

Insurance is a major part of the equation. You’ll need Primary Liability Insurance, On-Hook Coverage, and often Garage Keepers Liability if you store vehicles. Workers’ Compensation is required if you have employees. Many states also mandate state filing forms (like Form E or Form H) to prove your financial responsibility.

In addition to insurance and licensing, some jurisdictions require safety inspections for your equipment, proof of secure storage facilities, and clean background checks for drivers. At NITIC, we help you make sense of these requirements and provide tailored insurance solutions that meet every regulation—so you can focus on running your business, not decoding red tape.

Is towing insurance worth it?

Absolutely. Towing insurance isn’t just worth it—it’s one of the most important investments you can make as a tow truck operator. Tow trucks face higher risks than most other commercial vehicles. You’re handling disabled vehicles, often in hazardous conditions like busy highways or bad weather. Accidents, damage to a customer’s car, theft, and legal liability are just a few of the risks you deal with daily. One wrong move, and you could be facing tens of thousands in damages—if not more.

With towing insurance from NITIC, you get comprehensive protection that keeps you in business when the unexpected happens. We offer coverage for your tow truck, for customer vehicles while in transit (on-hook), and for your garage or lot if you store vehicles. We also offer liability coverage to protect you from lawsuits or claims made against your business.

The truth is, a single accident or damage claim without insurance could bankrupt a small towing business. That’s why truckers across the country turn to NITIC—for affordable, trucking-specific policies that keep their livelihoods protected. When your business is literally hauling someone else’s property, you need an insurance provider who knows exactly how to protect yours. That’s where we come in.