How Much Tow Truck Insurance Do I Need In California?

In California, tow truck companies are required to carry 250/500/100 in liability insurance and 15/30 in cargo insurance with a $600,000 minimum combined single limit. This means that tow trucks would need a coverage of $250,000 for bodily injuries/death, $500,000 per accident, and $100,000 for property damage. 

Do You Have Enough Tow Truck Insurance?

State insurance guidelines only require a 15/30 policy, but we encourage going above the mandated coverages. Increase your insurance based on the following factors:

• Risk of Road Accident: Truckers should bolster their policy whenever possible. 2019 statistics show that California has the highest number of recorded fatalities stemming from statistics.
• Nature of Business: Truckers that typically haul high-value vehicles should increase their coverage. Remember: you are responsible for cargo damage. Unless you have sufficient on-hook coverage, you might end up paying for unforeseen repairs out of pocket.
• Weather: Tow trucks often operate in harsh weather conditions. You’ll likely haul vehicles that are stalled in the snow or rain, so expect to drive on slippery, accident-prone roads.

Do not skimp on your tow truck insurance policy. California has stringent commercial truck insurance guidelines, so operating underinsured may compromise your business license. Minimizing insurance coverage saves you a few grand. However, driving underinsured puts you, your truckers, and your entire business model at risk.

Have you ever wondered why truck insurance providers don’t offer general liability in California? Let Assured Standard answer your question! Read our brief piece on general liability insurance laws in California to learn more.