Alabama Tow Truck Insurance
Written By: Caleb Jackson, Vice President of Transportation Insurance. Over the past 15+ years Caleb and his team have insured thousands of truckers throughout the United States. He is T.R.I.P certified. Last updated: September 20, 2026.
Alabama Tow Truck Insurance Explained
Whether you are a new operation or an existing Alabama Tow Truck company you are going to need insurance. The amount of insurance you need will depend on the scope of your operation as well as your operational area and the type of equipment you are using. Alabama law requires you to carry a certain minimum amount of insurance in reference to the parameters above.
Commercial Auto Liability Limits - On Rotation
If you are looking to do On-Rotation towing, the Alabama State Trooper (ALEA) requires a certain amount of insurance to receive dispatch calls for crashed, disabled and abandoned vehicles. The auto liability is the same for each weight class, but On-Hook coverage will vary.
Alabama State Trooper (ALEA) Wrecker Rotation Insurance Requirements by Class
| Wrecker Class | Vehicle Liability | On-Hook | Garage Liability (CSL) |
|---|---|---|---|
| Light Duty (up to 14,000 lbs GVWR) | $1,000,000 | $100,000 | $750,000 (incl. $100,000 min. Garagekeepers) |
| Medium Duty (up to 33,000 lbs GVWR) | $1,000,000 | $150,000 | $750,000 (incl. $100,000 min. Garagekeepers) |
| Heavy Duty (over 26,001 lbs GVWR) | $1,000,000 | $200,000 | $750,000 (incl. $100,000 min. Garagekeepers) |
Note: These are the minimum requirements to be placed on the Alabama State Trooper (ALEA) wrecker rotation list. Vehicle liability is a flat $1,000,000 across all classes and does not increase with truck size — only On-Hook and Garagekeepers-related coverage scale up by class. A maximum deductible of $1,000 per occurrence applies. Source: Alabama Law Enforcement Agency, Department of Public Safety, Towing and Recovery Policy (2025).
Non-Rotation - Commercial Towing Requirements
If you are doing non-rotation towing the insurance requirements will be less and you don’t have to carry On-Hook or Garagekeepers insurance. The Alabama Public Service Commission (APSC) requires a Certificate of Public Convenience along with a Form E and Form H. Both of these forms will be provided by the insurance company electronically as proof of liability insurance.
If you are towing intrastate (not crossing state lines) your minimum insurance requirements are $100,000 bodily injury liability per person, $300,000 per accident and $50,000 property damage. These limits can be combined into one coverage level of $350,000.
If you are crossing state lines the FMCSA requires $750,000 in combined single limit (CSL) liability plus a MCS-90 that will be provided by the insurance company.
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Additional Coverage Options
Uninsured/Underinsured Motorist Coverage - This is an additional coverage that can be purchased on your commercial auto policy. This coverage provides bodily injury coverage for yourself or a passenger if you are involved in an accident with another motorist and that motorist is at fault. If the at fault party does not have any liability insurance or an inadequate amount of liability insurance you could be stuck with a large amount of medical bills if you are injured. If you carry uninsured motorist coverage then you would have extra coverage to fall back on in this scenario.
Medical Payments - This is an additional coverage that can be added to your commercial auto policy. This coverage provides additional medical injury coverage for you and/or your passengers if you are injured in an accident while driving your vehicle.
Customer's Contents Coverage - This can be purchased to provide coverage for personal items owned by your customers that have been left in their vehicle. If their vehicle is burglarized while in your care, custody, or control you can use this coverage to reimburse them for their lost items.
Physical Damage Coverage - This coverage is needed if you want to be reimbursed for damage to your vehicle/equipment. There are several variations of physical damage coverage but the standard coverage package includes comprehensive and collision coverage with a stated deductible for each. If your vehicle is involved in a covered loss you would be paid the actual cash value of the damage minus your deductible. Most commercial policies will set a maximum limit of payout for physical damage on any one vehicle. This is usually referred to as the "Stated Amount." For Example, if you had a tow truck covered for comprehensive and collision coverage with a stated amount of 40,000 your insurance would respond to a loss as follows. After crashing the vehicle the actual cash value of the vehicle would be determined. You would then be paid that value (Not to exceed the stated amount) minus your deductible.
Barbee Jackson Insurance - Your Alabama Tow Truck Insurance Experts
Barbee Jackson Insurance is a leading provider of Alabama Tow Truck Insurance and we work with the largest Commercial Auto insurance carriers to provide our clients the best coverage options for the best price. Our professional staff is always here to help…even if you insure with our competitors. Call today if you need any help understanding coverage options or if you are looking for a competitive quote, Call Us Today 850-389-2001.