Towing companies need coverage for three things: the tow truck itself, the customer's vehicle while it's on the hook, and customers' vehicles stored on your lot. Many municipal rotation lists and motor-club contracts also set minimum limits.
Key tow truck coverages
- Commercial auto liability — often $1,000,000 for police rotation and motor-club work.
- On-hook (towing) coverage — damage to the vehicle you're towing or carrying.
- Garagekeepers — damage to customers' vehicles while stored in your care.
- Physical damage on the wrecker or rollback.
- General liability for your yard and roadside operations.
Want real numbers for your operation?
Tell us about your vehicles once and a licensed commercial auto specialist will follow up with quotes. Free, no obligation.
Get quotes Check a DOT/MC numberFrequently asked questions
What is on-hook coverage?
On-hook coverage pays for damage to a customer's vehicle while it is being towed or transported by your truck. Regular auto liability doesn't cover property in your care, custody or control.
Do tow trucks need MC authority?
Towing that crosses state lines for compensation can require USDOT registration and, in some cases, operating authority. Most local towing is regulated by the state and municipality instead.
Related guides
Reviewed October 2026. General information only — not insurance or legal advice. Coverage terms vary by insurer and state.