November 5, 2026
olua
Your Tow Truck Is Insured, But What About the Vehicle You’re Towing?
Imagine transporting a customer’s car when an accident happens. Your tow truck is insured, but who pays for the damage to the vehicle sitting on your flatbed?
This is one insurance gap many towing business owners overlook.
Having Commercial Auto Insurance does not automatically mean the vehicles you tow or store are covered. That’s why understanding On Hook Coverage and Garagekeepers Coverage is essential for every towing business.
1. What Is On Hook Coverage?
On Hook Coverage helps protect customer vehicles while they are attached to your tow truck and being transported.
For example, if a customer’s SUV is damaged in a covered accident while being towed, On Hook Coverage may help pay for the damage, subject to policy terms and limits.
It is particularly important for businesses offering roadside assistance, accident towing, and vehicle transportation.
2. What Is Garagekeepers Coverage?
What happens when you tow a vehicle to your storage yard and something goes wrong?
Garagekeepers Coverage helps protect customer vehicles in your care, custody, or control while stored at your business location.
Covered losses may include certain incidents involving:
- Fire
- Theft
- Vandalism
- Weather related damage
- Collision involving stored vehicles
Coverage depends on the policy and selected protection.
3. On Hook vs. Garagekeepers: What’s the Difference?
| Coverage | What It Protects |
|---|---|
| On Hook Coverage | Customer vehicles being towed |
| Garagekeepers Coverage | Customer vehicles in storage |
| Commercial Auto | Your insured tow trucks |
If your towing business transports and stores vehicles, both On Hook and Garagekeepers Coverage may be necessary to address different exposures.
4. How Much Coverage Does Your Towing Business Need?
Choosing the right limits depends on your operations. Consider:
- The average value of vehicles you tow.
- The most expensive vehicle you may transport.
- How many vehicles you store at once.
- Whether you handle heavy duty towing or accident recovery.
- Your policy limits, deductibles, and exclusions.
A towing company regularly handling luxury vehicles may need different limits from a small roadside assistance operator.
5. Don’t Overlook These Other Tow Truck Insurance Coverages
Beyond On Hook and Garagekeepers, towing businesses should also consider:
- Commercial Auto Insurance
- Physical Damage Coverage
- General Liability Insurance
- Workers Compensation Insurance
- Inland Marine Coverage
- Umbrella or Excess Liability Insurance
The right combination depends on your business activities and risk exposure.
Protect More Than Just Your Tow Truck
Your tow truck may be insured, but what about the customer’s vehicle attached to it or sitting in your storage yard?
Understanding On Hook Coverage, Garagekeepers Coverage, and Commercial Tow Truck Insurance can help prevent expensive coverage gaps.
At Cal-Society Insurance Services, we help towing businesses explore insurance solutions that reflect their actual operations, from single truck owners to growing towing fleets.
Email [email protected] or call 1-800-773-1663 to discuss your towing business insurance needs.
Cal-Society Insurance Services, Inc. | Keep Your Business Moving!