How to keep your tow truck business afloat

Having a towing business is hard work. It’s definitely not easy, and it’s really important to help yourself out by doing everything you can to keep yourself in business. Think of it as doing yourself a favor – giving yourself your best chance. There are a few things to keep in mind so you can keep your tow truck business on its feet.

4 tips to keep your tow truck business afloat

1. Safety is key.

There are a lot of reasons to really emphasize safety at your business – first and foremost your drivers and customers. Towing is a dangerous industry, and working on the side of the road is not for the faint of heart. Safety is paramount – it’s essential for keeping your drivers out of harm’s way. You need to make sure that everyone’s on the same page when it comes to prioritizing safety. Here are a few things to keep in mind, as suggested in a recent Tow Times article:

  • Spend lots of time training your drivers (keep state and federal regulations in mind).
  • Have written policies and procedures in place to outline your expectations for safety.
  • Keep all equipment properly maintained (keeping the manufacturer’s guidelines in mind).
  • Give your drivers reflective gear and other protective equipment.
  • Make safety an essential part of each job, taking the entire scene into account.

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2. Understand and adhere to relevant laws.

Yes, there are a lot of laws and regulations that apply to towing companies. Some of them might feel cumbersome, and it might be tempting to, ah, look the other way when it comes to following these laws, or pretend they don’t exist. The financial gain might be tempting at the moment, but the Tow Times article we mentioned earlier points out that practices like wreck-chasing or not lawfully towing private property (and other shady business practices) always come back to haunt the business.

The point is this: you need to make sure that you’re following the law and keeping your business practices above board. This is only going to help you, as you can avoid prosecution and lawsuits and all that mess. You can stay afloat by adhering to your state’s laws, which are there for good reason, after all. Don’t jeopardize your business because you’re not following the law (unintentionally or not).

3. Have proper tow truck insurance.

It’s absolutely essential that you carry appropriate insurance for your tow truck business. The reason is that your insurance is there to help you recover from major losses. Without the right coverage, a bad accident or another major financial setback could seriously jeopardize your business. Yes, tow truck insurance is expensive, but it’s very much an essential part of running a successful tow truck business. It’s there to catch you and help you get back on your feet if there’s a loss, an accident, what have you.

Here’s a brief overview of some coverages you can consider:

  • Auto liability: Can help cover the other driver’s medical bills and car repairs if you’re at-fault in an accident
  • Physical damage: Can help you get your tow truck back on the road ASAP
    • Collision coverage – can help you repair your truck following an accident
    • Comprehensive coverage – can help cover losses to your truck not caused by an accident, such as fire, theft, vandalism, or falling objects.
  • Garage liability: Can help you cover claims of bodily injury or property damage caused by the day-to-day services of your business
  • Garagekeepers: Can help protect the customer cars in your care, custody, and control from losses like fire and theft
  • On-hook: Can help protect the customer’s car from losses like fire and collision when it’s attached to your truck.

4. Marketing.

It’s also important to have a marketing plan for your tow truck business. You need to build your business’s brand, and you also need to have a strong website and social media presence. You have to get the word out there about your towing business with some basic marketing – SEO, website design, and so on. It’s easy to get preoccupied, but don’t forget to devote some time to marketing. Even a Google My Business page can help.

So, those are a few things you can do to give your business its best chance at survival. Towing is not an easy industry to get into, and it can be hard to make it as tow business. But if you give some commitment to safety, abide by the law, get the right insurance, and market your business, you can help keep your business afloat.

We can help you save on your tow truck insurance.

Speaking of insurance, our towing insurance professionals can help you get the coverage you need to protect your business. Get started with truck insurance quotes by filling out our online form, giving us a call, or messaging us on LiveChat. Our team would be happy to help you with your insurance needs.


Porto, Nicholas. “How to Develop Staying Power.” Tow Times, Jan. 2020,

p. 14.

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