How to Choose the Right Tow Truck Insurance Policy in Florida

If you manage a tow truck business in Florida, then you’re probably aware of the importance of obtaining the necessary insurance coverage to safeguard your business from unexpected hazards. Tow truck insurance is a type of commercial auto insurance that protects your tow trucks, drivers, and customers in the event of an accident. In the state of Florida, tow truck insurance is required by law. Therefore, it’s critical to understand the state-specific requirements to ensure that you have the proper coverage in place.

Types of Tow Truck Insurance in Florida

In Florida, there are numerous tow truck insurance coverage options available.

The most common include:

Liability Coverage

This coverage is required in the state of Florida and covers you if you’re found at fault in an accident. It’ll pay for any damage caused to the other party’s property or injuries they sustain in the accident.

Physical Damage Coverage

Physical damage coverage protects your tow truck from damage caused by theft, vandalism, accidents, or natural disasters. Under Florida state law, this coverage isn’t required; however, if the tow truck is leased or financed then the lender may require you to purchase this coverage.

On-Hook Coverage

This form of coverage safeguards the vehicles that are in tow. So, if they’re damaged or stolen during transport, on-hook coverage will cover the cost to repair or replace the vehicle.

Garagekeepers Coverage

If you store customers’ vehicles on your premise, this coverage will safeguard them from potential damage or theft.

Medical Payments Coverage

If you or your passenger are injured in the event of an accident, this coverage will help cover medical expenses incurred, regardless of who’s at fault.

Requirements for Tow Truck Insurance in Florida

Tow truck businesses in Florida are required to have a minimum of $50,000 to $300,000 in liability coverage. This range is large because the minimum required coverage is dependent on your truck’s gross vehicle weight, the larger the truck, the more coverage you’ll need. You may also be required to obtain additional coverage based on the type of towing services you provide.

Florida’s minimum level of on-hook coverage is $50,000. However, if you know you’ll be transporting vehicles that exceed $50,000 in value, it’s best to purchase additional coverage. Talk with your insurance agent to decide what level of insurance is suitable for your business.

Lastly, if you store vehicles on your premise, you must carry a minimum of $50,000 in garagekeepers coverage. However, if you often store vehicles that are well over $50,000 in value, you should think about adding additional coverage.

Finding the Right Tow Truck Insurance Policy in Florida

The first step in acquiring the best tow truck insurance policy in Florida is by working with an experienced and qualified agent. They will be able to assist you in finding the proper coverage to protect your business at the lowest possible rate.

Aside from that, there are a few other ways you can obtain a cheaper tow truck insurance premium:

  • Maintain a clean driving record
  • Opt for a higher deductible
  • Bundle your policies
  • Attend a safety training course
  • Change the type of towing services you perform


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