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Houston Tow Truck Insurance: Commercial Coverage for Towing and Roadside Service Operations

Towing companies in Houston operate in one of the highest-exposure commercial auto environments in the country. Your drivers work on active freeways, handle damaged vehicles, and interact with distressed motorists — often at night, in weather, or on the shoulder of I-10 during rush hour. A single accident involving your wrecker and a passenger vehicle can produce a claim exceeding $1 million, and Houston juries aren’t known for restraint in commercial vehicle verdicts. Your insurance program needs to reflect these realities, not treat your operation like a standard commercial fleet.

We work with towing companies, roadside service operators, and vehicle recovery businesses across the Houston metro. Our commercial auto specialists understand the unique coverage requirements — from garage keeper’s liability to on-hook coverage to the specific endorsements Texas requires for licensed tow operators.

• Commercial auto liability for tow trucks typically costs $8,000 to $15,000 per vehicle annually in Houston, depending on fleet size and loss history
• On-hook/in-tow coverage protects vehicles you’re transporting — your customer’s car on your wrecker is YOUR liability
• Garage keeper’s liability covers vehicles stored at your facility against fire, theft, vandalism, and collision
• Texas Motor Vehicle Commission requires specific insurance thresholds for licensed tow operators
• Workers comp for tow truck drivers falls under high-risk class codes due to roadside exposure — experience mod management is critical

Why Tow Truck Insurance Is Different From Standard Commercial Auto

A standard commercial auto policy for a delivery fleet doesn’t address the exposures specific to towing operations. Your trucks carry other people’s vehicles — creating a bailment liability that standard auto forms don’t contemplate. Your drivers work on active roadways — creating pedestrian and traffic exposure that delivery drivers don’t face. Your operations often involve impound lots — creating storage liability for vehicles in your care, custody, and control. And your contracts with law enforcement agencies, motor clubs, and insurance companies require specific coverage forms and limits that generic commercial auto can’t satisfy.

We structure tow truck insurance programs with carrier relationships that understand commercial vehicle operations in Houston. The difference between a broker who places tow truck insurance regularly and one who does it once a year is the difference between a policy that responds to your claims and one that generates coverage disputes.

• On-hook coverage is NOT included in standard commercial auto — it must be specifically endorsed or written on a separate form
• Garage keeper’s liability is separate from both auto and GL — stored vehicles need their own coverage
• Motor club and law enforcement contracts specify minimum limits that often exceed standard policy minimums
• Pollution liability may be needed for fuel and fluid spills during vehicle recovery operations
• Cargo/vehicle damage claims are the most frequent tow truck insurance claims — proper on-hook limits prevent out-of-pocket losses