On-Hook Tow Companies
Tow companies face many unique challenges, between the day-to-day tasks, workplace safety and meeting customer demands, operating a tow company can be demanding. We can ease the burden by helping to navigate the ever-changing requirements of insurance. AutoRisk can scale customizable insurance solutions to handle your unique needs. We offer the right products and services to help protect your business.
Frequently Asked Questions about Tow Truck Coverage:
States AutoRisk Provides Insurance Coverage:
Colorado – California – Texas – Wyoming – Arizona – New Mexico – Utah – Kansas – Missouri – Oklahoma – Arkansas – Idaho – Iowa – Indiana – Nebraska – Nevada – North Dakota – South Dakota – Montana
What is On-Hook Tow Insurance?
On-Hook Tow Insurance (sometimes called “On-Hook Coverage”) protects a towing business or dealership when a customer’s vehicle is damaged while being towed. It covers incidents like collision, fire, theft, explosion, or vandalism that occur while the vehicle is in your care and attached to your tow truck.
Who needs On-Hook Tow Insurance?
Any business that tows customer vehicles — including tow truck operators, auto repair shops, motorcycle and auto dealerships, and roadside assistance companies — should carry On-Hook coverage. Without it, you may be personally liable for damages to customer vehicles in your custody.
What does On-Hook Tow Insurance cover?
On-Hook policies typically cover damage to customer vehicles caused by:
Collision during towing
Fire
Theft or vandalism
Explosion
Coverage is usually up to the policy’s stated limits.
Is On-Hook Tow Insurance the same as Garage-keepers Insurance?
No. While both cover customer vehicles in your care, they apply to different situations:
On-Hook Insurance covers customer vehicles while being towed.
Garage-keepers Insurance covers vehicles stored, parked, or being serviced at your location.
Many businesses carry both.
Does On-Hook Tow Insurance cover the tow truck itself?
No. On-Hook coverage applies only to the customer’s vehicle being towed. To protect your own tow truck, you’ll need commercial auto insurance.
Can I bundle all of my insurance policies into one?
Yes. At AutoRisk we specialize in Dealer Package Policies that consolidate all your necessary coverages under one streamlined program. This makes it easier to manage renewals, billing, and claims—and may reduce your total premium.
Are my employees covered when test-driving or transporting vehicles?
Yes, when you have Garage Liability and Commercial Auto coverage in place, your employees are typically covered when driving dealership vehicles for business purposes. We ensure your policy language includes this crucial protection.
Is On-Hook Tow Insurance required by law?
Requirements vary by state. Some states mandate it for licensed tow operators, while in others it may be optional but highly recommended. Even if not required, most contracts, dealerships, and lenders will expect proof of coverage.
What factors affect the cost of On-Hook Tow Insurance?
Premiums depend on:
Type and value of vehicles towed
Driving records of operators
Geographic location
Claims history
Chosen coverage limits and deductibles
What’s not covered under On-Hook Tow Insurance?
Typical exclusions include:
Intentional damage
Poorly secured vehicles (if negligence is proven)
Mechanical breakdowns unrelated to towing
Personal property inside the customer’s vehicle
What do I need to know about OSHA regulations
See our PDF on OSHA – Click Here
Required Insurance
for Tow Truck Companies:
Cargo Towing Insurance
On-Hook Tow Insurance
Garagekeepers
Garage Liability
Commercial Auto
Property
Workers’ Compensation
Recommended Insurance:
Pollution Liability
Cyber Liability
Rental Insurance
Excess Liability
We understand that protecting your business requires more than an insurance policy. Our specialization allows us to create safety and compliance programs which are relevant to any business in the automotive industry.
Business needs and suitability vary greatly, so as you explore special coverages needed for your business it will be important to work with a professional experienced with knowledge of your industry. Our experience working with businesses that require coverage in the automotive industry are unmatched.
Call for a Quote – (720) 445-6959
Call for a Quote
(720) 445-6959
