How Much Tow Truck Insurance Cost Per Month/Year in USA? Guide 2023

The average cost of tow truck insurance in USA is $448 per month or $5,376 per year. This is for basic general liability coverage with a $1 million limit. Tow truck insurance is a type of commercial auto insurance that covers tow trucks and their drivers in the event of an accident or other covered event. It can help protect your business from financial losses if you are sued for damages or if your tow truck is damaged or stolen.

Common Types of Tow Truck Insurance

Tow truck insurance in the USA is designed to provide coverage for businesses and operators involved in towing and roadside assistance services. There are several types of tow truck insurance coverage options available to ensure that tow truck operators are adequately protected in various situations. Some of the key types of tow truck insurance are:

1: Liability Insurance:

This is required by law in most states and protects you from financial losses if you or one of your drivers causes bodily injury or property damage to others.

2: Physical Damage Coverage

This coverage pays for repairs to your tow truck if it is damaged or destroyed in an accident, regardless of who is at fault.

3: Comprehensive Coverage

This coverage protects your tow truck from theft, vandalism, and other non-collision losses.

4: Medical Payments Insurance

This coverage pays for medical expenses for you, your passengers, and any other covered individuals who are injured in an accident involving your tow truck.

5: On-Hook Towing Coverage

This coverage protects your customers’ vehicles while they are being towed by your tow truck.

6: Uninsured and Underinsured Motorist Coverage

This coverage protects you and your passengers from financial losses if you are involved in an accident with a driver who does not have insurance or does not have enough insurance to cover your damages.

5 Tips How to Managing Tow Truck Insurance Expenses

Tow truck insurance can be a significant expense for towing companies, but there are several things you can do to reduce your costs. So here are the five tips that can help you save your insurance expenses:

1: Shop Around for The Best Rates

Many different insurance companies offer tow truck insurance, so it’s important to shop around to get the best rates. You can compare quotes online or through an insurance broker.

2: Bundle Your Policies

If you have other business insurance policies, such as general liability or commercial auto insurance, you may be able to save money by bundling them together. Many insurance companies offer discounts for customers who purchase multiple policies from the same company.

3: Raise Your Deductible.

Your deductible is the amount of money you have to pay out of pocket before your insurance coverage kicks in. If you’re willing to raise your deductible, you’ll lower your monthly premiums. However, it’s important to make sure you can afford to pay your deductible in the event of an accident.

4: Maintain a Good Driving Record

Your driving record is one of the biggest factors that insurance companies use to determine your rates. If you have a clean driving record, you’ll be eligible for lower premiums.

5: Take Advantage of Safety Features.

Many insurance companies offer discounts for tow truck owners who install safety features on their vehicles, such as GPS tracking systems or dashcams. These features can help to reduce the risk of accidents and make it easier to investigate claims.