Tennessee Tow Truck Insurance: Essential Coverage for Your Towing Business
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.
Keep your Business Rolling with Barbee Jackson Insurance
Tennessee tow operations are highly regulated by the Department of Safety and Homeland Security’s Towing Service Standards. It is important that you work with an agency that understands the regulations and get you the right insurance at the best price the first time.
As an independent insurance agency we work with a vast number of insurance companies that have programs designed to meet your needs. We will compare rates and coverage options to protect your business from unforeseen risks.
Seif Jaber ⭐⭐⭐⭐⭐”Tyler was awesome, he got us quoted in no time, great service definitely recommend”
Why Barbee Jackson Insurance
✅ No phone prompts - talk to a real person not A.I.
✅ Dedicated agent and customer service representative to handle all your account needs
✅ Expert advice from trucking agents that understand the rules and regulations
✅ Fast Certificate of Insurance, regularly issued in 5 minutes or less during normal business hours.
Tennessee Insurance Requirements by Tow Operations
Depending on Consensual Towing or Non-consensual towing will matter for insurance requirements. The first that we will explore is non-consensual towing - Police Rotation.
The Department of Safety and Homeland Security’s Towing Service Standards requires these limits by class of vehicle.
Tennessee Non-Consensual Towing Insurance Requirements by Class
| Tow Class | Description | Vehicle Liability | Garage Keepers | On-Hook |
|---|---|---|---|---|
| Class A | Light duty, minimum 14,000 lbs GVW, 4-ton boom/winch | $1,000,000 | $75,000 | $75,000 |
| Class B | Medium duty, minimum 26,000 lbs GVW | $1,000,000 | $150,000 | $150,000 |
| Class C | Heavy duty, minimum 35,000 lbs GVW, 12.5–25 ton boom | $1,000,000 | $200,000 | $200,000 |
| Class D | Rollbacks/small trailers/pickups carried rather than towed, minimum 14,000 lbs GVW | $1,000,000 | $75,000 | $75,000 |
Consensual Towing is when the owner of the vehicle or motor club calls the tow operation directly. There are no Garage Keepers or On-hook Insurance requirements, but highly recommended if you damage a customer's vehicle while being On-Hook or garage keepers insurance if you have a storage yard.
Motor Clubs will have their own minimum insurance requirements. Please consult your contract to determine limits.
Required Tennessee Limits go by Gross Vehicle Weight Rating (GVWR)
Vehicles 10,001-26,000 lbs requires $300,000 in Combined Single Limit (CSL)
Vehicles over 26,000 GVWR requires $750,000 in CSL
Falisha Stewart ⭐⭐⭐⭐⭐”Barbee Jackson Insurance is passionate and professional with their customers. They take the time to hear what you want and need so you can get the best protection for your business.”
Wheel Lift vs. Flatbed
There is a lot of debate when it comes which type of tow truck is safer and less expensive to insure. Barbee Jackson Insurance has insured hundreds of different types of tow operation and experience has taught us that wheel-lift is less costly to insure. The reason being is the cost to insure the physical damage for the tow truck. Another reason could be if you haul vehicles for hire from a dealership or auction. This would change the classification from tow operation to car hauler.
Wheel lifts are significantly cheaper to buy than flatbed trucks. If you require physical damage coverage the policy will be written at Agreed Value or Stated Value.
How Much Does Insurance Cost?
Costs will vary depending on liability limits and other coverage options such as physical damage coverage, On-hook and Garage Keepers. For light duty trucks you can expect to pay $375-700 per month per unit. Heavier duty trucks (type of trucks that can haul semi-trucks) will cost $1,700 or more per month, per vehicle.
💡Caleb’s Pro Tip - If the price sounds too good then you are most likely not getting the right coverage to protect your business. Different types of tow operations have different types of risk. Consult a tow truck insurance specialist to make sure there are no coverage gaps.
Coverage Options
Physical Damage - This damage to the vehicle. It is important that you include the cost of the permanently attached equipment such as the boom or rolloff when stating the value.
Medical Payments - Medical payments for the driver and passenger no matter who is at-fault for the accident.
Uninsured/Underinsured Motorist Bodily Injury - Additional medical payments and pain and suffering when involved in an accident with a vehicle that is insured or underinsured.
On-hook - Covers damage to the customer’s vehicle while on the bed of the truck or on-hook to the boom.
Garage Keepers and Garage Liability - If you store vehicles it is important to have garage keepers insurance to protect customer’s vehicles while in your care, custody and control. Garage Liability is another added value for slip and falls that can happen in the storage yard.
Questions and Answers
Can a passenger ride in the truck when I’m towing their vehicle back to their house or shop?
Yes, we have no exclusions on passengers riding in the truck.
What is the most common claim?
The most common claim is a rear-end accident. The second most common claim is damage to a customer's vehicle while on-hook. That is why we always recommend on-hook insurance to protect you from costly tow mistakes.
I’m going to want to add more trucks and drivers to my policy to grow my business. What can you offer to help me?
We do Free driving record checks to make sure that the driver you are hiring has a clean record. We can also quote your unit cost with the VIN or year, make and model.