Tow Truck Insurance in Texas
Commercial coverage for wreckers, rollbacks and towing companies, matched to the TDLR permit you hold: incident management, private property or consent towing. Talk to a licensed A-LA agent by phone.
En español: seguro de grúa en Texas
Quick Answer: Does A-LA Write Tow Truck Insurance in Texas?
Yes, A-LA writes tow truck insurance in Texas. Every tow truck used for consent or nonconsent towing on a Texas public road needs a TDLR permit, and TDLR sets the minimum insurance by permit type, per truck, per incident: $500,000 liability plus $50,000 cargo or cargo-on-hook for incident management towing; $300,000 liability plus $50,000 cargo for private property towing; and $300,000 liability for consent towing. The insurer files your certificate with TDLR electronically. An A-LA agent compares the options available for your operation and quotes by phone; eligibility depends on your trucks, drivers and history.
To get a quote, call (866) 252-6116 and tell the agent your permit types, trucks and drivers, or send us a message.
TDLR Insurance Minimums by Tow Permit Type
The Texas Department of Licensing and Regulation (TDLR) regulates towing under Texas Occupations Code chapter 2308 and its rules in 16 Texas Administrative Code chapter 86. Section 86.400 sets the minimum insurance for each tow truck permit. The liability amount is a combined single limit for bodily injury or death and for loss or damage to property per occurrence. All amounts are per truck, per incident.
| Permit type | What it covers (Occ. Code §2308.002) | Liability minimum | Cargo / on-hook minimum |
|---|---|---|---|
| Incident management towing | Tows from the scene of a traffic collision or incident, including removing vehicles, commercial cargo and commercial debris. | $500,000 | $50,000 |
| Private property towing | Tows authorized by a parking facility owner without the vehicle owner's or operator's consent. | $300,000 | $50,000 |
| Consent towing | Tows requested by the vehicle's owner or operator, or by a person who has possession, custody or control of the vehicle. | $300,000 | Not required |
Sources: 16 TAC §86.400, TDLR: Apply for a Tow Truck Permit, Occ. Code §2308.002. Minimums are a legal floor. Many operators carry higher limits, and the companies or cities you tow for may require them.
How TDLR Checks Your Tow Truck Insurance
The coverage only counts if TDLR can see it. These are the filing rules in 16 TAC §86.400 and on TDLR's tow truck permit page:
- Texas-licensed insurer. The certificate of insurance must come from an insurance company licensed and authorized to do business in Texas.
- Electronic certificate. The permit applicant must make sure an electronic certificate of insurance is submitted for a new application, a renewal, a business name or affiliation change, and whenever TDLR asks. You give your certificate number to your insurer, who sends the policy information to TDLR.
- Exact name and address. The name and address on the certificate must exactly match the name and address on your TDLR application or permit.
- 30-day cancellation notice. Every certificate must say the insurer will notify TDLR 30 days before the policy is canceled.
- Always in force. Coverage must be kept current at all times. TDLR may revoke a license if the insurance is canceled and no replacement is filed before the cancellation date.
Each tow truck needs its own permit (Occupations Code §2308.101), and anyone operating a truck under an incident management permit needs an incident management towing operator's license (§2308.153). Keep your driver roster and truck list current with your agent so the policy matches what TDLR has on file.
Coverages Towing Companies Usually Discuss
The TDLR minimums cover two things: liability and, for most permits, cargo on hook. A towing business has other exposures too. These are the coverages an agent will usually walk through with you. What any specific policy pays depends on its wording, limits and exclusions.
Commercial auto liability
Pays for injuries and property damage your tow truck causes to other people. This is the coverage TDLR's liability minimums apply to.
On-hook / cargo
Covers the customer's vehicle while it is hooked to or loaded on your truck. Required at $50,000 for incident management and private property permits.
Physical damage on your trucks
Collision and comprehensive for the wrecker or rollback itself. Not required by TDLR, but usually required by a lender if the truck is financed.
Storage lot coverage
If you store towed vehicles at a TDLR-licensed vehicle storage facility, the lot has its own insurance minimum (see below).
If You Also Run a Vehicle Storage Facility
Many towing companies store the vehicles they tow. A vehicle storage facility (VSF) is licensed separately by TDLR, and 16 TAC §85.400 sets its own insurance minimum based on how many vehicles the lot can hold:
- Up to 50 vehicles: not less than $9,000 per claim
- 51 to 99 vehicles: not less than $18,000 per claim
- 100 or more vehicles: not less than $25,000 per claim
As with tow permits, the VSF certificate must come from a Texas-licensed insurer, match the license name and address, and require 30 days' notice to TDLR before cancellation. Source: 16 TAC §85.400.
Getting a Tow Truck Insurance Quote: What to Have Ready
Commercial towing quotes are built on details. Having these ready makes the call with an A-LA agent faster:
- Your TDLR license and permit types: incident management, private property, consent, or a mix.
- Each truck's VIN, year, make and model, and type (wrecker, rollback, heavy-duty).
- Every driver: license number, date of birth, driving record and towing experience.
- The exact business name and address as it appears with TDLR.
- Where the trucks are garaged and the area you usually tow in.
- Limits you need: the TDLR minimums, plus any higher limits a contract, motor club or city rotation list requires.
- Storage lot details, if you run a vehicle storage facility (vehicle capacity).
- Current or prior insurance and any claims history.
Tow Truck Insurance FAQ
Still have a question about your towing operation? Call (866) 252-6116 or contact an agent.
Related Commercial Coverage
Reviewed by the A-LA Auto Insurance editorial team · Last updated October 2026. Regulatory minimums from 16 TAC §86.400 and §85.400 and Texas Occupations Code chapter 2308. Rules can change; confirm current requirements with TDLR. Coverage and eligibility vary by carrier and operation.
Get Your Tow Trucks Covered
Tell us your permit types, trucks and drivers, and an A-LA agent will help you line up coverage that meets TDLR's minimums and the limits your contracts ask for.