What is Wreckers Insurance?
Wreckers insurance is a specialized type of commercial auto coverage designed for businesses that operate tow trucks or similar vehicles. These policies protect companies from the financial risks associated with towing, recovery, and roadside assistance services. Whether you're towing disabled vehicles, removing illegally parked cars, or transporting vehicles after accidents, wreckers insurance helps cover your business operations.
Who Needs Wreckers Insurance?
This type of insurance is essential for:
- Independent tow truck operators
- Roadside assistance providers
- Auto repair shops with towing services
- Salvage and recovery businesses
- Repossession companies
If your business uses a tow truck or similar vehicle, wreckers insurance can help protect your vehicles, employees, and customers.
What It Typically Covers
Wreckers insurance policies often include a combination of the following coverages:
- Auto liability: Covers bodily injury and property damage you may cause to others while operating your tow truck.
- Physical damage: Covers repairs or replacement of your tow truck due to collisions, theft, vandalism, or weather-related damage.
- Garagekeepers legal liability: Protects customer vehicles in your care, custody, or control (e.g., while being towed or stored).
- On-hook towing coverage: Covers damage to a vehicle that you're towing if it's damaged during transport.
- Medical payments: Helps pay for medical expenses if you or your passengers are injured in an accident.
Common Exclusions and Limitations
While coverage can be broad, there are some common exclusions and limitations, including:
- Intentional damage or illegal activities
- Unlicensed or improperly trained drivers
- Vehicles used outside of their intended business purpose
- Wear and tear or mechanical breakdowns
Always review your policy details carefully to understand what is and isn’t covered.
Factors That Influence Cost
Several factors can affect the cost of a wreckers insurance policy, such as:
- Number and type of tow trucks in your fleet
- Driving history of your operators
- Location and areas of operation
- Types of vehicles you typically tow
- Claims history
Insurance providers will assess the overall risk of your business when determining rates.
Proof of Insurance and Compliance
Most states require commercial tow operators to carry specific levels of insurance coverage. Proof of insurance is often needed to obtain or renew business licenses and permits. Local and state regulations may also mandate minimum liability limits or other specific coverages, particularly for companies that operate on public roads or provide services for law enforcement or municipalities.
How to Get a Quote
Getting wreckers insurance starts with comparing policies that match your business needs. Be prepared to provide information about your vehicles, drivers, and the types of services you offer. We make it easy—get a free quote today.
Frequently Asked Questions
What’s the difference between on-hook and garagekeepers coverage?
On-hook coverage protects vehicles while they're being towed, while garagekeepers covers vehicles stored on your business premises.
Is wreckers insurance required by law?
Many states require tow truck operators to carry specific insurance coverage. Requirements vary, so check your local regulations.
Does wreckers insurance cover my employee drivers?
Yes, most policies cover your employees when they're operating insured vehicles, provided they have valid licenses and meet policy conditions.
Can I add more than one vehicle to my policy?
Yes, most insurers allow you to cover multiple tow trucks under a single commercial policy.
What happens if a vehicle I’m towing gets damaged?
On-hook coverage typically pays for damages to a customer’s vehicle while it’s being towed, depending on the terms of your policy.
Still have questions? Talk to a local insurance expert.