Commercial Auto Liability
Commercial auto liability can address covered bodily injury or property damage claims arising from operation of insured commercial vehicles.
Towing & Roadside Insurance
Tow Truck Insurance in Illinois
Insurance built around the real risks of towing, roadside assistance, vehicle recovery, and customer vehicle storage.
Tow trucks. Customer vehicles. Drivers. Storage. Contracts.
One insurance conversation.
Professional rollback / tow truck operation
The whole operation
Towing Creates More Than One Insurance Risk
A towing company does more than operate a commercial truck.
Your business may pick up disabled vehicles, transport customer vehicles, perform roadside assistance, recover damaged vehicles, store vehicles, work with motor clubs, or participate in police and municipal towing programs.
Each part of that operation creates a different exposure. That is why tow truck insurance should be reviewed around what your business actually does—not simply the vehicle you drive.
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Rollback tow truck transporting a customer vehicle
Car Hauling or Towing — What's the Difference?
You may hear the terms car hauling, vehicle transport, and towing used to describe similar types of work.
Most customers simply call it towing. In the insurance industry, car hauling or vehicle transportation may also be used when describing businesses that move customer vehicles.
Whether you operate a tow truck, rollback, flatbed, or vehicle transporter, the important question is how your business handles the customer's vehicle—and what coverage applies while that vehicle is being transported or stored.
Coverage areas
What Insurance Should a Towing Business Review?
The appropriate coverage depends on your trucks, drivers, services, operating area, customer vehicles, storage operations, and contracts.
Physical Damage
Physical damage can help protect an insured tow truck, rollback, or wrecker against covered collision and comprehensive losses, subject to policy terms and deductibles.
On-Hook Coverage
On-hook coverage is designed to address covered damage to a customer's vehicle while it is being towed or transported by the towing operation.
Garagekeepers Coverage
Garagekeepers coverage addresses customer vehicles being stored or kept in the towing company's care at its location, subject to policy terms.
General Liability
General liability can address certain covered third-party bodily injury or property damage exposures arising from business activities outside normal vehicle operation.
Workers' Compensation
Workers' compensation should be reviewed based on employees, business structure, job duties, and applicable requirements.
Follow the vehicle
Where Is the Customer's Vehicle?
One of the easiest ways to understand towing insurance is to follow the customer's vehicle through the operation.
Your tow truck
Commercial Auto + Physical Damage
Customer vehicle is loaded and transported
On-Hook Coverage
Customer vehicle is stored at your location
Garagekeepers Coverage
The tow truck and the customer's vehicle are not the same insurance exposure.
A towing company that transports vehicles and stores them should review both parts of that risk.
Illinois registration
Illinois Tow Truck Insurance Requirements
Illinois establishes minimum insurance requirements for tow-truck registration.
| Coverage | Illinois Registration Minimum |
|---|---|
| Automobile Liability | $500,000 CSL |
| Garage Liability | $500,000 CSL |
| On-Hook Coverage | $25,000 |
| Garagekeepers Coverage | $25,000 |
| Workers' Compensation | When applicable |
CSL means combined single limit. Source: Illinois Secretary of State tow-truck registration guidance (PDF).
Certain exceptions can apply depending on the operation. These amounts are registration minimums—not necessarily the amount of insurance every towing company should carry.
Illinois minimums do not automatically equal your contract requirements or your actual business exposure.
On-Hook vs. Garagekeepers: What's the Difference?
On-Hook
Customer vehicle is being:
- Loaded
- Towed
- Carried
- Transported
Think: the customer's vehicle is moving with you.
Garagekeepers
Customer vehicle is:
- Stored
- Held
- Parked at the towing facility
- In the company's care at its location
Think: the customer's vehicle is staying with you.
Transporting → Review on-hookStoring → Review garagekeepers
If your business does both, your insurance review should address both exposures.
Loading, unloading and storage protection depend on the policy wording, limits and exclusions. Confirm when each coverage applies.
Before you sign
Minimum Coverage May Not Satisfy Every Towing Contract
A towing company can meet a state registration requirement and still need higher insurance limits for certain work.
Some towing arrangements can require insurance limits above the basic tow-truck registration minimums.
Before signing a towing contract, review its insurance requirements, including applicable liability limits, on-hook limits, garagekeepers requirements, general liability, workers' compensation, certificates of insurance, and additional insured requirements.
The legal minimum is not always the contractual minimum.
What Type of Towing Operation Do You Run?
Insurance should reflect the work you actually perform.
Prepare for a useful conversation
Preparing for a Towing Insurance Review
Accurate information helps match the insurance conversation to the operation you actually run.
- Tow trucks and VINs
- Truck types and values
- Drivers
- Towing radius
- Types of towing performed
- Roadside assistance services
- Vehicle recovery work
- Customer vehicle storage
- Police or municipal rotation work
- Motor-club or commercial contracts
- Current on-hook limits
- Current garagekeepers limits
- Prior claims or loss runs
- Current insurance
- Renewal date
Towing insurance questions
Frequently Asked Questions
Illinois towing businesses may need commercial auto liability, on-hook, garagekeepers, garage liability, and workers' compensation when applicable. Exact requirements depend on the operation and contracts.
On-hook coverage helps protect a customer's vehicle while it is being towed or transported. Coverage depends on the policy's limits, terms, deductible, and exclusions.
On-hook generally applies while a customer's vehicle is being transported. Garagekeepers addresses customer vehicles being stored or kept in your care at your location.
Illinois establishes minimum insurance requirements for tow-truck registration, but contracts and certain towing programs may require higher limits. Your limits should reflect both applicable requirements and how your business operates.
Yes, new towing businesses may qualify. Insurers typically review the trucks, drivers, towing services, operating radius, storage operations, driving history, and requested coverage.
One insurance conversation
Protect the Operation Behind Every Tow
Your trucks are only one part of the risk.
Motive can help you review the vehicles, drivers, towing services, customer vehicle exposure, storage operations, and contracts behind your business.