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.
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:
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.