Wrecker Insurance 101: Essential Coverage for Towing Companies

Estimated read time 2 min read

Towing companies play a vital role in keeping our roads safe and clear. However, operating a wrecker or towing business comes with its own set of risks and liabilities. From accidents on the road to damages during transportation, there are numerous potential hazards that towing companies face on a daily basis. This is where wrecker insurance comes into play. In this article, we’ll delve into the basics of wrecker insurance and why it’s essential for towing companies to have adequate coverage.

Understanding Wrecker Insurance

Wrecker insurance, also known as towing insurance, is a specialized type of commercial auto insurance designed to protect towing companies from financial losses resulting from accidents, damages, or other liabilities associated with operating wreckers or tow trucks.

Coverage Options

Wrecker insurance typically offers a range of coverage options, including:

  • Liability Coverage: This provides protection in case your tow truck is involved in an accident that causes bodily injury or property damage to a third party.
  • Physical Damage Coverage: This covers the cost of repairing or replacing your tow truck if it’s damaged in an accident, regardless of who’s at fault.
  • On-Hook Coverage: This protects the vehicles you’re towing while they’re in transit on your tow truck.
  • Garagekeepers Coverage: This covers damages to vehicles while they’re stored at your towing facility.
  • Uninsured/Underinsured Motorist Coverage: This provides coverage if you’re involved in an accident with a driver who doesn’t have insurance or has insufficient coverage.


In conclusion, wrecker insurance is a must-have for towing companies looking to protect their assets and liabilities. With the right coverage in place, you can operate your wrecker or towing business with peace of mind, knowing that you’re financially protected against unforeseen events and accidents. If you own or operate a towing company, don’t overlook the importance of wrecker insuranceā€”investing in adequate coverage today could save you from significant financial losses tomorrow.

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