Tow Truck Insurance Cost in 2026: Published Figures and What Drives Your Price 

Most tow truck insurance prices you find online name no source. This page works the other way. Every figure below says where it came from, and where nobody publishes a figure, we say so and explain what drives the price instead.

Published figures are medians and averages across many operators. They tell you the neighborhood, not your number. For a real number, a licensed commercial producer replies within one business day at 833-776-4671 or through our trucking and towing quote request.

How Much Does Tow Truck Insurance Cost in 2026?

The most recent published figures put tow truck insurance at a median of $355 per month and an average of $606 per month for new Progressive Commercial customers in 2025, covering liability and physical damage. Insureon reports a median of $737 per month for commercial auto among the towing businesses that apply through it.

The average sits well above the median, which means a smaller number of expensive accounts pull it up. Where you land depends on the factors in the next section.

Progressive's figures are for its own new policies in 2025, per power unit, for liability and physical damage with no driver violations. Insureon's are medians for the towing businesses that apply for quotes through it. Neither is a quote, and on-hook and garagekeepers are priced on top. We do not publish price ranges of our own.

What Determines Your Tow Truck Insurance Premium?

Progressive Commercial lists six things that set tow truck insurance cost: tow truck type and age, your location, type of towing, driving record, claims history, and coverage limits. Underwriters also ask how far you run, how long you have been in business, and what on-hook and garagekeepers limits you need. Here is how each one works.

1. Truck class and value. Physical damage premium follows the stated value of the truck, so a light-duty rollback costs less to insure than a heavy wrecker or rotator.
2. Operating radius. Local work generally prices below intermediate and long-haul work, because the truck spends less time on the road.
3. Type of towing. Motor club work, police rotation, repossession, auction hauling, and heavy recovery are each rated differently.
4. Driving records. Violations and at-fault accidents raise the price. A serious violation can keep a driver off the policy altogether.
5. Years in business. A new venture has no loss history for the underwriter to rate, so it generally pays more until it builds one.
6. Claims history. Prior losses raise the price and can narrow the list of carriers willing to quote.
7. Liability limit. Higher limits cost more. State law sets the floor, and contracts usually ask for more than the legal minimum.
8. On-hook and garagekeepers limits. Higher limits cost more. Size them to the most expensive vehicle you tow or store, not the average one.
9. Filings. Interstate for-hire towing needs the MCS-90 endorsement and a federal filing. Some states add filings of their own.
10. Location. Rates differ by where the trucks are garaged.

Tow Truck Insurance Cost by Operation Type

Not every towing operation prices the same. Underwriters classify the work itself, not just the trucks. Nobody publishes prices by class, so here is how each of the six most common classes is rated.

Light-Duty Local Towing

Rollbacks and wheel-lifts handling passenger cars and light pickups close to home. This is generally the lowest-priced class of towing and the one most carriers will quote. Most motor club contracts can be serviced in this class.

Medium-Duty Towing and Recovery

Trucks that handle box trucks, small commercial vehicles, and light recovery. Pricing rises with the value of the truck and with any recovery work, so winch recoveries and larger commercial vehicles cost more to insure.

Heavy-Duty Recovery and Long-Haul

Heavy wreckers, rotators, and long-haul tractors sit at the top of the market. These are expensive units, so physical damage is a large part of the premium. DOT authority, the MCS-90, and CDL drivers come with the work.

Repossession Towing

Repossession work adds exposure from confrontations, wrongful repossession claims, and after-hours operations. Wrongful repossession coverage is often limited or excluded on a standard tow policy, so confirm it is on yours. Fewer carriers write repossession, and it generally prices above standard towing.

Motor Club and Roadside Assistance

If you run lockouts, jump starts, and fuel delivery but do not tow, your exposure is lower. Once you add even occasional towing, the account is rated as a towing operation, and most carriers will want a towing endorsement.

Police Rotation and Municipal Impound

Police rotation and municipal impound work brings contract requirements of its own: the liability limit, additional insured wording, and garagekeepers limits for the impound lot. Read the contract before you bid, because those terms decide the price.

For a deeper breakdown of what each of these coverages does, see our towing insurance coverage guide.

Tow Truck Insurance Cost by Coverage Type

A complete tow truck insurance program is built from several coverage lines. Published figures exist for three of them. The rest are priced by the limits you choose, and nobody publishes a reliable figure for them.

A common and expensive mistake in towing is an on-hook limit that is too low. An operator with a $50,000 on-hook limit who picks up a $120,000 vehicle is left with the $70,000 gap. For a deep dive on this specific coverage, read our on-hook towing insurance guide.

Tow Truck Insurance Cost by State

There is no published state-by-state price table for tow truck insurance, and we will not invent one. What changes by state is the law, and the law sets the limits you have to buy. Higher required limits cost more.

Illinois. Every tow truck operator must carry at least $500,000 combined single limit of truck liability, at least $500,000 of garagekeepers liability, and at least $25,000 of on-hook or garagekeepers coverage for the vehicles towed and stored, plus workers compensation (625 ILCS 5/12-606). See our Illinois tow truck insurance page.

Crossing state lines. Interstate for-hire towing falls under the federal minimum: $750,000 in liability for trucks rated 10,001 pounds or more (49 CFR 387.9).

Other states. Each state sets its own limits and licensing rules for towing. We confirm the current requirement for your state before we quote.

How Much Does Tow Truck Insurance Cost for a New Business?

A new towing business generally pays more than an established one. There is no published figure for how much more, and anyone quoting you a percentage is guessing.

New venture premiums are higher because the underwriter has no loss history to rate, no business track record, and often a first-time owner who has never held commercial auto before. What you do in year one shapes the renewal:

• Clean MVRs for all drivers from day one
• Written safety program and driver onboarding documentation
• In-cab cameras or telematics, which some carriers give credit for
• The liability limit your contracts will ask for, from the start, so you are not raising it mid-term
• Proper on-hook limits sized to the most expensive vehicle you might realistically tow

 If you are launching a towing business, we also help with DOT authority, MCS-150 filings, and state operating authority. Call 833-776-4671 or request a quote online.

What Is the Cheapest Tow Truck Insurance Company?

There is no single cheapest tow truck insurance company. The carrier that is cheapest for one operation will be uncompetitive or declining for another. Tow truck pricing is governed by carrier appetite, which defines the specific operations, radius, class of truck, driver profile, and loss history each carrier wants to write.

Pro Insurance Group accesses the major tow markets directly and through specialty MGA relationships. The carriers we typically quote tow business through include:

• Progressive Commercial: Competitive on light-duty local operations with clean MVRs and 2+ years experience. Typically uncompetitive on heavy-duty, long-haul, or repossession work.
• Berkshire Hathaway Homestate Companies (BHHC): Strong appetite for established tow operators with clean loss history. Competitive across light and medium-duty classes when underwriting fits.
• NICO (National Indemnity) via RPS: One of the most consistent specialty markets for tow-related accounts. Good fit for operators that fall outside Progressive's appetite but still present clean.
• Arrowhead: Accessible market for established tow operators with 2+ years experience. Useful when standard markets are declining or non-renewing.
• KBK Insurance: Specialty access for tow operators meeting the 2+ year experience threshold. Strong on operators with specific niche profiles.
• Risk Retention Groups (RRGs): Provides placement flexibility for harder-to-place tow accounts, including operators with adverse loss history, mixed fleets, or non-standard operations that traditional admitted markets decline.
• Specialty tow and repossession MGAs: For repo work, non-standard exposures, and accounts that fall outside admitted-market appetite. Pricing is segment-appropriate but coverage is available when other carriers will not write.

The only way to find your cheapest carrier is to have a broker market your submission across the carriers with matching appetite. A single direct quote from one carrier tells you nothing about whether it is competitive. Pro Insurance Group quotes most tow risks across multiple appointed carriers and specialty markets to identify the best pricing for the specific operation.

Carrier appetite shifts over time. The carriers listed reflect markets we currently access; specific availability for your operation depends on class, state, driver record, loss history, and individual underwriter appetite at the time of submission.

How Can I Lower My Tow Truck Insurance Cost?

Seven practical levers can lower your tow truck insurance premium without cutting real coverage:

1. Raise your physical damage deductible. A higher deductible lowers the physical damage premium. Only go as high as you can pay out of pocket after a claim.
2. Audit driver records every quarter. One driver with a major violation can raise the whole renewal. Know what is on every record before the underwriter does.
3. Right-size your on-hook limit. Match the limit to the most expensive vehicle you actually tow. Do not pay for more, and do not carry less.
4. Install telematics or dash cams. Some carriers give credit for them, and the footage helps defend claims.
5. Place workers comp and commercial auto together. When one carrier wants both lines, placing them together can improve the pricing.
6. Market the renewal every few years. Carrier appetite shifts. The carrier that was cheapest three years ago is rarely still cheapest today.
7. Document your safety program in writing. Hiring standards, record checks, annual training, and incident reporting in a written manual help the submission.

How Does Fleet Size Affect Tow Truck Insurance Cost?

As you add trucks, carriers rate the account more on its own loss history and less on class averages. That cuts both ways. A fleet with clean years can earn better per-truck pricing than a single truck. A fleet with heavy losses can pay more per truck than a one-truck operator with none.

Larger fleets may also have access to loss-sensitive or large-deductible programs, which trade a lower premium for more risk kept in house. They need cash reserves and careful setup, so they are worth a look only at real fleet size. See our fleet insurance page.

How to Read a Tow Truck Insurance Quote

Tow truck insurance quotes are notoriously hard to compare. Two quotes that look similar on the total premium line can be materially different in actual coverage. When you receive a quote, check these seven elements before making a decision.

1. Named insured and listed operations. Every type of work you do must be disclosed. If you disclosed motor club towing but the quote does not list repossession and you run repo work, any repo claim could be denied.
2. Primary liability limit. Confirm $1M combined single limit is stated, not split limits like $500K/$1M/$500K. Split limits expose you on single-claim events.
3. On-hook limit and deductible. Confirm the limit matches the most expensive vehicle you could reasonably tow. Confirm the deductible is something you can pay out of pocket.
4. Garagekeepers coverage basis. GKLL can be written on legal liability, direct primary, or direct excess basis. Direct primary pays regardless of fault; legal liability only pays if you are legally liable. Direct primary is stronger but costs more.
5. Radius of operation. The quote must allow the radius you actually run. Quotes rated at 50 miles when you regularly run 200 miles create a material misrepresentation.
6. Scheduled drivers. Verify every active driver is listed. Carriers can deny claims involving unlisted drivers.
7. MCS-90 endorsement status. If you run interstate for-hire work, confirm the MCS-90 is included.

If you received a tow truck insurance quote and want a second opinion, we review quotes for free at 833-776-4671. We will tell you where the quote is strong, where it is weak, and whether we think we can beat it before starting a full submission.

Frequently Asked Questions About Tow Truck Insurance Cost

How much is tow truck insurance per month?

Progressive Commercial reports a median of $355 per month and an average of $606 per month for new tow truck customers in 2025, for liability and physical damage. Insureon reports a median of $737 per month for commercial auto among the towing businesses that apply through it. On-hook and garagekeepers are priced on top.

Do I need garagekeepers insurance if I only do roadside work?

If you never store customer vehicles on your premises, you do not technically need garagekeepers legal liability. The moment you impound, store overnight, or hold a vehicle in your lot for any period, GKLL is essential. Most motor club contracts and municipal rotations require it.

What is on-hook insurance and do I need it?

On-hook insurance covers damage to a customer's vehicle while it is attached to or being loaded onto your tow truck. Your commercial auto policy typically does not cover the vehicle you are towing, so any operation that physically tows vehicles needs it. Choose a limit that matches the most expensive vehicle you handle.

What is MCS-90 and do I need it for towing?

The MCS-90 is an endorsement on the liability policy of an interstate for-hire motor carrier, including a towing operation that crosses state lines for pay. It is the proof of financial responsibility federal rules require, which is $750,000 for non-hazardous freight in trucks rated 10,001 pounds or more. If you tow across state lines for pay, you need it. Operators who stay in one state generally do not.

What is the minimum insurance required for a tow truck in Illinois?

Illinois law requires every tow truck operator to carry at least $500,000 combined single limit of truck liability, at least $500,000 of garagekeepers liability, and at least $25,000 of on-hook or garagekeepers coverage for the vehicles towed and stored, plus workers compensation (625 ILCS 5/12-606). However, most motor club contracts, police rotations, and commercial customers require $1M combined single limit. Practically, $1M CSL is the working minimum in Illinois.

Does Progressive Commercial cover tow truck insurance?

Yes, Progressive Commercial writes tow truck insurance and is competitive on light-duty local operations with clean MVRs and 2+ years experience. Progressive is typically less competitive on heavy-duty, long-haul, and repossession work. For those classes, specialty markets like NICO (accessed through RPS), Berkshire Hathaway Homestate Companies, and tow-specific MGAs usually price better. Pro Insurance Group accesses Progressive directly along with multiple specialty markets to compare pricing across the carriers that match your operation.

Can I write off tow truck insurance as a business expense?

Yes. Tow truck insurance premiums paid for a commercial towing operation are deductible as an ordinary and necessary business expense on Schedule C (sole proprietor) or the applicable entity return. Consult your CPA for specifics to your entity type and state.

Why did my tow truck insurance go up at renewal?

The three most common reasons are at-fault claims in the prior term, new violations on a driver's record, and a rate increase the carrier applied to the whole class. If your renewal goes up without a loss on your record, it is worth marketing the account to other carriers.

Do I need insurance if I only tow my own vehicles?

If you tow only vehicles you own as part of a business operation (for example, an auto dealer moving inventory), you still need commercial auto insurance on the tow truck. You typically do not need on-hook coverage, since on-hook is designed for non-owned vehicles.

How much does police rotation tow insurance cost?

There is no published figure for police rotation work. The contract sets the price: municipalities usually specify the liability limit, additional insured wording for the municipality, and garagekeepers limits for impound storage, and those requirements drive the cost.

What coverage do I need to tow for Uber or rideshare vehicles?

On-hook insurance typically covers the non-owned vehicles you tow, whether or not they are used for rideshare, subject to the policy's terms. Ask your producer to confirm there is no exclusion on your policy.

Can I get tow truck insurance with a DUI on my record?

Yes, but your options narrow and the price goes up. A recent DUI can keep a driver off the policy altogether. Some nonstandard carriers will still write the account, and options widen again after several clean years.

Related Tow Truck Insurance Resources

• Tow Truck Insurance Main Service Page
• Illinois Tow Truck Insurance
• Tow Truck Insurance: 2026 Costs & Coverage Guide
• What Is On-Hook Towing Insurance?
• What Does Towing Insurance Cover?
• Who Needs Commercial Towing Insurance?