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Why are tow truck insurance rates going up?

If you run a towing business, you may have noticed a trend that doesn’t exactly make you happy – tow truck insurance rates have been going up. Your bills are probably higher than you would like. You might be seething about your rates, but it’s important to understand that the trend of increasing tow truck insurance rates isn’t just an arbitrary thing. It’s not just because insurance companies are out to get towing businesses. The truth of the matter is that towing is a dangerous business and that commercial auto insurance rates across the board are rising. We’ll explain why this has been happening and how you can counter this trend.

Why are tow truck insurance rates going up?

1. People are driving more.

First of all, you have to consider the fact that people have been driving more in the past few years. Since gas prices and unemployment rates are relatively low, more people are driving. And more cars on the road mean that there will be more accidents. And that means that there’s a higher chance that a towing company will file a claim.

2. The frequency and severity of accidents have gone up.

Distracted driving is a huge, nationwide problem. Texting and driving is theorized to have caused an increase in the frequency of accidents. Let’s say a driver takes their eyes off the road for five seconds to send a text. If you’re going 50 miles per hour, you can travel the length of a football field in that time. The epidemic of distracted driving has increased the risk of the road. And of course, speeding also contributes to the severity of accidents. The faster you’re going, the worse an accident can be.

3. Medical expenses have gotten higher.

If you or one of your drivers causes an accident that injures the other driver, the driver’s injury could be ongoing. They might need a lot of time and medical attention to heal. And those medical bills can be very high. So, a possible claim could be very expensive.

4. Cars are more expensive.

Many cars are becoming more “high-tech,” which means that repairs from even a minor accident can be more expensive. If the vehicle is equipped with cool new technology, repairing or replacing it can cost a lot of money. Again, that means that a potential insurance claim could be a lot higher.

5. The costs of bodily injury liability have gone up.

The expenses associated with bodily injury liability litigation have been going up a lot. Particularly if the accident involves a commercial motor vehicle. (That’s why it’s so important to make sure that you have enough auto liability insurance.) So, if you file a claim, chances are the expenses are going to be very high when you add up all of the costs of the lawsuit.

How can a towing business save money on tow truck insurance?

All of the above factors add up to this:

The chances of your tow truck business experiencing an accident are higher. The chances of that accident being more severe are higher. The chances of facing expensive bodily injury litigation are higher. Insurance companies look at that probability and see more risk. Therefore – tow truck insurance rates have gone up.

But nevertheless there are some things you can do to save money on your tow truck insurance rates:

truck insurance quotes

That’s the deal with tow truck insurance rates. The situation might seem a bit bleak, but don’t lose hope. We can help you shop for the best tow truck insurance at the best rate. Our transportation insurance agents are pros at helping towing businesses get customized insurance at great rates. To get multiple quotes for your towing insurance, all you have to do is fill out our quote form or give us a call today.


Jackson, Tim. “The Rising Cost of Tow Truck Insurance.” Tow Times, Feb.

2018, pp. 35-38.