Tow Truck Insurance Florida: Cost, Quotes and Requirements

Tow Truck Insurance Florida 

Do you own a towing service and need cheap insurance for your tow trucks? If one of your tow trucks gets into an accident or damages someone else’s property, tow truck insurance might assist in covering the costs. Let’s look at the protection tow truck insurance offers and why all towing companies require it. This article further emphasizes the importance of tow truck insurance in Florida.

Tow Truck Insurance Florida 

If you own a tow truck business in Florida, you’re undoubtedly aware of the need for the right insurance coverage to protect your company from unanticipated risks. In the event of an accident, tow truck insurance covers your tow trucks, drivers, and clients. Tow truck insurance is required by law in the state of Florida. As a result, it’s vital to understand the state-specific regulations to ensure you have adequate coverage. There are various tow truck insurance coverage alternatives available in Florida.

The most common are:

#1. Liability Insurance

This coverage is mandatory in Florida and protects you if you are determined to be at fault in an accident. It will cover any property damage or injuries sustained by the other party as a result of the accident.

#2. Physical Damage Protection

Physical damage insurance protects against loss due to theft, vandalism, accidents, or natural disasters. Florida state law does not require this coverage, but if the tow truck is leased or financed, the lender may force you to obtain it.

#3. On-the-Hook Protection

This type of coverage protects the automobiles in tow. As a result, if they are damaged or stolen while being transported, on-hook coverage will cover the cost of repairing or replacing the vehicle.

#4. Garagekeepers Insurance

If you store your clients’ automobiles on your property, this coverage will protect them from damage or theft.

#5. Medical Payments Insurance

If you or a passenger are harmed in an accident, this coverage will assist in covering medical expenses, regardless of who is blamed.

BusinessYield Tip: Towing insurance is required if your business operates or generates money from towing disabled cars. Organizations that provide roadside assistance, contractors for auto clubs, auto body and mechanics' shops, full-service gas stations with repair shops, and organizations that perform auto salvage and transport automobiles to auctions are examples of businesses that require tow insurance policies.

Tow Truck Insurance Cost per Month 

The national average monthly cost for basic tow truck insurance in 2020 was $450, or around $4,500 to $5,000 per year for a single tow truck utilized for basic roadside and recovery towing. State law also requires a general liability policy; the average monthly cost of a standard general liability policy for a small tow truck business with minimum coverage ranges from $97 to $159. Your insurance agent should be able to assist you in drafting a policy that meets those fundamental needs.

The nature of your business will be one of many variables that affect the premium cost. For example, suppose your company is an automotive repair or body shop, and you use a tow truck to supplement your principal repair business. In that case, the average basic premium cost per truck is around $7,500 per year. Because of the added risks that repossession businesses face, the average premium cost jumps to $10,000 per truck.

Tow Truck Insurance Requirements 

Tow truck companies in Florida must carry $50,000 to $300,000 in liability insurance. This range is enormous because the gross vehicle weight of your truck determines the minimum amount of coverage you need; the bigger the truck, the more coverage you’ll need. Since it depends on the type of towing services you perform, you may also need to obtain supplementary coverage.

The state of Florida requires at least $50,000 in on-hook coverage. However, if you know you’ll transport vehicles worth more than $50,000, you should obtain additional coverage. Consult with your insurance agent to determine the appropriate level of insurance for your company.

Finally, if you store vehicles on your property, you must have at least $50,000 in garage keeper coverage. However, if you occasionally store vehicles worth more than $50,000, you should consider obtaining additional coverage.

Best Tow Truck Insurance Florida 

Your specific demands and circumstances determine the best tow truck insurance in Florida. Still, some variables to consider while selecting a tow truck insurance policy are as follows:

#1. The Type of Insurance You Require. 

Tow truck insurance policies often include personal injury, property damage, and third-party liability coverage. Choose a policy covering the damages you are most likely to sustain.

#2. The Deductible. 

The deductible is the amount you must pay out of pocket before your insurance provider will start covering damages. Choose a deductible that you can afford to pay if an accident occurs.

#3. The Coverage Restrictions. 

The coverage limitations are the most money your insurance provider will pay out in the event of a claim. Choose a policy with high enough coverage levels to safeguard you in a significant accident financially.

#4. The Insurance Company’s Reputation. 

Research a company with a solid reputation for customer service and claims management.

After considering these criteria, you may compare quotes from several insurance companies to obtain the best tow truck insurance policy for your needs.

Here are some of Florida’s best tow truck insurance companies:

  • Progressive
  • State Farm 
  • Geico
  • Travelers 
  • Allstate

Florida Tow Truck Insurance Quote

A Florida tow truck insurance quote will vary depending on various criteria, including the type of tow truck you operate, your driving record, and your chosen insurance company. There are, however, certain typical features to look for in a Florida tow truck insurance quote.

Firstly, give the insurance company information about your tow truck, such as the make, model, and year. You must also provide details about your driving record, including any previous accidents or citations.

The insurance provider will then use this information to calculate your risk and decide your premium. In general, if you have a poor driving record or run a larger or more expensive tow truck, you should expect to pay more for insurance.

After receiving a quote, you can either settle for the terms offered or continue looking. Before deciding, it is crucial to examine quotations from different firms, as rates might vary significantly from one company to the next.

It is also essential to read the fine print of any insurance policy before you purchase it. Ensure you understand the coverage you are getting and the exclusions that may apply.

By following these tips, you can be sure to get the best possible Florida tow truck insurance quote.

How to Start a Tow Truck Business in Florida 

  • Conduct market research
  • Choose a catchy Business Name
  • Register Your Cost Analysis and Budgeting Business
  • Create a Business Plan, a Marketing Plan, and a Financial Projection.
  • Set up your shop/office, hire employees, and adequately launch your business.

How Do I Get a Tow Truck License in Florida? 

  • Comply with the legal standards. In most cases, prospective tow truck drivers in Florida must meet various regulatory standards.
  • Participate in the initial training.
  • Take the skills and knowledge test.
  • Obtain your commercial driver’s license (CDL).
  • Consider getting certified.

What Are the Towing Laws in Florida? 

If a vehicle (or watercraft) is parked on your property without permission, you can take it from your land under Florida law. You shall not be held liable for any expenditures or damage incurred from removing, moving, and storing the car.

Do You Need a CDL to Drive a Tow Truck in Florida? 

Suppose the gross vehicle weight rating or gross vehicle weight of the towed vehicle is more than 10,000 pounds. In that case, any individual who drives a motor vehicle combination with a gross vehicle weight rating or gross vehicle weight of 26,001 pounds or more must have a valid Class A driving license.

What Is Predatory Towing in Florida? 

Predatory towing is the practice of unaffiliated private companies towing illegally parked cars in private parking lots to charge exorbitant towing fees. Another aspect of predatory towing is the towing of legally parked cars.

Can You Sue a Towing Company in Florida? 

You must act quickly if you suspect the towing company wrongfully towed your vehicle. In Florida, you only have 30 days to submit a claim against a towing firm.

Do Tow Trucks Have to Stop at Weigh Stations in Florida? 


All trucks traveling on state highways must stop at every Weigh Station and Agricultural Inspection Station along the route to their destination.

How Can I Lower My Tow Truck Insurance Rates? 

  • Driving logs are required.
  • Employ capable drivers
  • Provide ongoing training 
  • Safeguard your firm and drivers
  • Maintain your cars regularly.

Why Should I Get Tow Truck Insurance? 

Tow General Liability insurance protects your tow truck business financially if you are held liable for physical harm or property damage to a customer or third party. This coverage may also cover your court and legal expenditures.

How Do I Get Tow Truck Insurance in Florida?

Whether you are a new or established Florida Tow Truck company, insurance is required. The quantity of insurance you need will be determined by the extent of your operation, your operational area, and the equipment you use. Following the specifications above, Florida law requires you to carry a particular minimum amount of insurance.

Bottom Line

Maintaining the necessary level of insurance coverage to meet Florida state regulations is crucial. This will keep your towing operation running without problem. You won’t have to worry about getting hit with extra costs due to noncompliance, either. However, getting enough insurance to meet Florida’s minimum requirements is one thing and quite another: buying enough insurance to safeguard yourself and your business. You need to determine how much of a risk you are willing to take. 

You should get extra In Tow/On Hook coverage than the minimum required by law of $50,000 if you often tow vehicles worth more than that. This also applies to your Garagekeeper’s Legal Liability cap. If you often have automobiles valued at more than $50,000, having only $50,000 in coverage is not enough. Finally, you and your agent should talk about any aspects of your company. 

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