5 Common Tow Truck Insurance Claims — And How to Avoid Them

The towing business isn’t just about pulling vehicles out of tough spots — it’s about managing risk, staying protected, and keeping your business on the road. Tow truck operators face unique challenges that make having the right insurance not just important, but essential.

At Cal-Society Insurance Services Inc., we’ve worked with countless tow truck companies and seen the types of claims they deal with the most. Knowing what to expect — and how to prevent it — can save you thousands of dollars and protect your business long term.

Below are the five most common tow truck insurance claims — and how you can avoid them.

1. On-the-Road Accidents

Whether you’re towing a vehicle or heading to a job, tow trucks spend a lot of time on the road — which means a high risk for accidents. From rear-end collisions to sideswipes, these incidents are among the top claims filed.

Prevention Tips:

• Implement defensive driving training
• Use GPS and dispatch systems to avoid high-traffic areas
• Perform regular maintenance checks to avoid breakdowns

Essential Coverage:

• Auto Liability Insurance
• Physical Damage Coverage

2. Damage to Customer Vehicles

Towing a vehicle comes with responsibility — and the potential for costly damage. Claims often arise from scratches, dents, or transmission issues due to incorrect towing.

Prevention Tips:

• Train drivers on proper towing methods (flatbed, wheel lift, etc.)
• Take before-and-after photos for documentation
• Use the right equipment for each job

Essential Coverage:

• Garagekeepers Legal Liability Insurance

3. Injuries to Tow Truck Drivers

Drivers often work in dangerous conditions — on the side of busy highways, in bad weather, or at night. Slips, falls, and accidents while hooking up vehicles are common causes of injury claims.

Prevention Tips:

• Provide high-visibility safety gear
• Conduct regular safety training sessions
• Have clear protocols for roadside procedures

Essential Coverage:

• Workers’ Compensation Insurance

4. Stolen or Vandalized Equipment

From stolen toolkits to vandalized trucks, theft and property damage can hit tow companies hard. Thieves often target trucks left overnight at yards or unattended on-call.

Prevention Tips:

• Secure trucks and equipment when not in use
• Install GPS trackers and cameras on all vehicles
• Park in well-lit, secure locations

Essential Coverage:

• Inland Marine Insurance
• Comprehensive Physical Damage Coverage

5. False Claims or Lawsuits

Unfortunately, tow truck companies are sometimes the target of false claims or exaggerated lawsuits — from customers, other drivers, or even passersby.

Prevention Tips:

• Keep detailed records and photos for each job
• Use dash cams for real-time footage
• Have customers sign release forms before and after service

Essential Coverage:

• General Liability Insurance
• Professional Liability (Errors & Omissions)

Protect Your Business with Cal-Society Insurance

Tow truck companies face enough challenges — don’t let an avoidable claim derail your business. At Cal-Society Insurance Services Inc., we specialize in crafting customized tow truck insurance policies that fit your operation and budget.

✅ Competitive rates
✅ Fast certificate turnaround
✅ Knowledgeable agents who understand your business

👉 Get a free quote today.
Call us at (800-773-1663) or visit www.calsociety.com