On-Hook and In-Tow Coverage for Tow Truck Operators
When you're in the towing business, protecting the vehicles you transport is just as important as protecting your own. That's where on-hook and in-tow coverage comes in — a key part of your tow truck insurance policy.
On hook coverage, also called on-hook towing insurance, helps pay to repair or replace a customer's vehicle if it's damaged during towing — whether by collision, fire, theft, explosion, or vandalism.
In Texas and Virginia, this coverage is referred to as Garagekeepers Legal Liability insurance.
What Is On-Hook Coverage?
On-hook coverage protects your business if a customer’s vehicle is damaged while it's being towed by your truck. Whether you’re towing from a breakdown, accident, or repossession, on-hook coverage fills the gap between your liability insurance and property damage coverage.
Who Needs On-Hook Insurance?
If your business tows vehicles that it doesn’t own, you need on-hook insurance. This includes towing for repairs, roadside assistance, or repossession.
Businesses that offer towing services need on-hook towing insurance to protect them while they're hauling vehicles owned by a customer or someone else.
On-hook coverage is available for a variety of towing businesses, including auto repair shops, body shops, and service stations.
How It Works
Let’s say you’re towing a client’s vehicle and something goes wrong. Maybe your chains slip or a branch scrapes the car while backing up.
A customer's car won't start, so she calls you to pick it up. You're towing it to your shop for repairs and stop to refuel your tow truck. When leaving the gas station, you turn too sharply and accidentally scrape the car against a low-hanging tree branch, rip off the mirror, and scratch the door.
The $15,000 on-hook towing limit with a $500 deductible covers replacing the mirror and repairing the door. You pay $500, and the insurance pays the rest.
Am I Required to Have On-Hook/In-Tow Insurance?
Yes — depending on your state and the type of towing services you provide, on-hook or in-tow insurance may be required by law.
Some states mandate a minimum level of on-hook coverage if you're operating a tow truck commercially or performing non-consensual tows (like police rotation work or repossessions).
Be sure to check your specific state's towing insurance regulations and ensure you're meeting all required limits. If you're not sure, our team can help you verify what coverage is legally required in your area.
What’s Not Covered
Every policy has exclusions, and on-hook coverage is no different.
What’s Not Covered:
- Towing your personal car behind your mobile home
- Transporting your own vehicles or vehicles your business owns
- Towing antique cars, race cars, or boats for personal use
You must carry liability insurance to be eligible for on-hook towing insurance. If one towing vehicle on your policy has it, all towing vehicles must carry it with the same limits.
How Much Does On-Hook/In-Tow Coverage Cost?
The cost of on-hook or in-tow insurance can vary widely — there's no one-size-fits-all price tag. Insurance companies use several factors to determine your premium, all based on your business's risk profile and operations.
Here are some of the key details that can affect your on-hook insurance rates:
- Your drivers: The age, experience, and driving records of your tow truck drivers can have a major impact. Safe, experienced drivers typically lower your premium.
- Claims and losses: A history of insurance claims or vehicle damage will raise red flags for insurers and may result in higher rates.
- Speeding tickets or violations: These are viewed as signs of risky driving behavior and can increase your cost.
- What you tow: Do you haul disabled vehicles, junk cars, new cars, or repossessions? The type and condition of vehicles you typically tow will affect your premium.
- Your location and towing radius: Local tows vs. long-distance hauls can significantly affect risk and price. Urban areas might also come with higher rates due to increased traffic and accident potential.
- Business experience: A well-established towing company with minimal losses is more likely to receive lower rates than a new business with no track record.
Every towing business is unique, so the best way to find out what on-hook/in-tow coverage will cost for you is to get a personalized quote.
We’ll do the shopping for you — just fill out our quote form or give us a call, and we’ll provide multiple competitive quotes to find the right coverage at the best price.
Get Covered Today
At Tow Truck Insurance Rates, we specialize in helping towing businesses protect their trucks, equipment, and customers’ vehicles with comprehensive insurance options.
Get a fast quote for on-hook coverage tailored to your tow truck business. Call us or fill out the form to protect the vehicles you tow — and your reputation.
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