What is Tow Truck Insurance?

Tow truck insurance is a specialised commercial motor insurance designed to protect towing businesses from the financial risks associated with vehicle recovery and roadside operations. It covers damage to your tow truck, liability for vehicles you tow, third-party injuries, public liability, and business interruptions caused by accidents or unexpected events.

Running a towing operation means facing daily risks such as accidents, roadside hazards, damage to customers vehicles, liability claims, and mechanical breakdowns. ...read more

Quick Summary:

Why Tow Truck Insurance Matters

  • Protects your tow truck from accidental, fire, theft, and collision damage
  • Covers customer vehicles while they are being recovered, loaded, or transported
  • Provides public liability protection for third-party injuries and property damage
  • Reduces financial loss during downtime with business interruption cover
  • Essential for accident towing, salvage recovery, breakdown towing, and roadside assistance
  • Designed to keep towing businesses compliant, protected, and operational at all times
best tow truck insurance

Tow Truck Insurance Coverage

Comprehensive Motor Insurance

Coverage Range: $20,000 – $500,000+

(based on vehicle value)

Covers your tow truck for:

  • Accidental damage
  • Fire, theft, vandalism
  • Storm, flood, natural disasters
  • Collision and impact damage

Tow & Transport Liability (On-Hook / Hook Liability)

Coverage Range: $50,000 – $500,000 per towed vehicle

Covers customer vehicles while:

  • Winching
  • Loading / unloading
  • Lifting, towing, or transporting

Public Liability Insurance

Coverage Range: $5 Million – $20 Million

Protects your towing business against:

  • Injury to third parties
  • Property damage
  • Accidental incidents at recovery/accident sites

General Property / Tools of Trade Cover

Coverage Range: $10,000 – $100,000

Protects equipment such as:

  • Chains, dollies, towing tools
  • Jump starters, straps, accessories
  • Safety gear and uniforms

Business Interruption Insurance

Coverage Range: $1K – $5K per week (12–24 wks)

Compensates for income loss when your tow truck is off the road due to an insured event.

Worker’s Compensation

Mandatory Coverage

Mandatory for business owners with employees. Covers medical costs, injuries, rehabilitation.

Fleet Insurance

Customisable Rates

Available for businesses operating 2–50+ tow trucks, providing centralised management and discounted rates. Coverage is customised based on truck values and fleet size.

Mechanical breakdown unrelated to an accident
Damage resulting from improper securing or faulty equipment
Towing illegal or unregistered vehicles (unless listed)
Personal items inside customer vehicles
Intentional or fraudulent damage
Drivers under the influence of alcohol or drugs
Unlisted or unlicensed drivers
Overloaded towing beyond legal capacity
Rust, corrosion, and normal wear & tear

Understanding exclusions allows you to adjust your policy to avoid claim disputes.

Call us if you have any questions

We are happy to help you save money possible

Request A Quote

Coverage options required: *

Who We Cover

We provide tow truck insurance solutions for:

Independent tow truck operators
Accident towing services
Breakdown & roadside assistance providers
Mechanical workshops with tow trucks
Panel Beaters
Auto salvage & recovery fleets
Multi truck towing companies

Whether you operate one tow truck or an entire fleet, we tailor coverage to match your risk profile.

Why Tow Operators in Australia Choose Us

25 Years of Tow Truck Insurance Expertise

Decades of hands-on industry knowledge in towing, recovery, and accident scenes.

We Compare Multiple Insurers for You

Get the best coverage at the best price, minus the time and hassle.

Customised Policies

Accident towing, breakdown towing, trade towing, salvage, fleet operations. We design policies to fit your business.

Fast & Efficient Claims Support

We assist with documentation, claims lodging, and follow-ups to reduce downtime.

Competitive Pricing for New & Experienced Operators

Our insurer relationships help secure pricing advantages not typically available elsewhere.

Factors That Affect Tow Truck Insurance Cost

Premiums depend on operational, vehicle, and business-related factors:

  • Type of Towing Operation
  • Value of the Tow Truck
  • Location & Operating Radius
  • Driver Age, Licence, and Experience
  • Claims History
  • Security Measures
  • Frequency of Towing Jobs
  • Type of Vehicles You Tow
  • Fleet Size

Common Problems Tow Operators Face
And How We Solve Them

Problem 1: Premiums are too high

We compare multiple insurers and optimise coverage to reduce costs.

Problem 2: Unsure of required coverage

We assess your business and recommend the right protections.

Problem 3: Claims take too long

Our support team speeds up the process and reduces downtime.

Problem 4: Concern about damaging customer vehicles

On-hook liability protects you from costly repair claims.

Problem 5: Business cannot afford downtime

Business interruption keeps income flowing during repairs.

Process to Get Tow Truck Insurance

1
Tell Us About Your Business

Provide details such as truck type, operations, drivers, and coverage needs.

2
We Compare Multiple Insurers

We assess pricing, coverage limits, exclusions, and policy conditions.

3
Choose the Best Policy

We present clear options so you can make an informed decision.

4
Finalise Your Insurance

We handle all paperwork and underwriting requirements.

5
Claims & Ongoing Support

If a claim occurs, we help with documents, lodging, and follow-ups.

recovery truck insurance cost
TESTIMONIALS

What Our Tow Truck
Operators Say

4.9
Rating (30 Reviews)

Frequently Asked Questions

Tow truck insurance is a specialised commercial policy designed to protect towing operators from risks such as vehicle damage, liability, towing risks, and business interruption.

Anyone involved in accident towing, breakdown towing, salvage recovery, roadside assistance, mechanical workshop towing, or auto recovery operations.

It includes comprehensive motor cover, public liability, on-hook liability, equipment cover, business interruption, and optional add-ons.

Wear and tear, illegal towing, unlicensed drivers, operational negligence, overloaded towing, and DUI-related incidents.

Costs vary based on truck value, location, driver experience, towing type, claims history, and coverage limits.

A cover that protects customer vehicles while they are being lifted, loaded, transported, or unloaded by your tow truck.

Yes. It protects you if your towing activities cause injury or property damage.

Yes. Fleet insurance can cover 2 to 50+ tow trucks under a single policy.

Yes, but premiums may be higher and additional conditions may apply.

Yes, if on-hook or towing liability is included.

Usually 24–48 hours. Same-day cover is available for many operators.

Contact your insurer with incident details. We assist with documentation and follow-up to speed up processing.