Why Tow Truck Insurance Rates Are Going Up in 2025 — and How to Save

Tow truck insurance is one of the biggest recurring expenses for operators and fleet owners. And in 2025, many are seeing a noticeable spike in their premiums. Whether you run a single truck or manage a full fleet, understanding why these rate hikes are happening—and how to keep your costs down—can make a big difference to your bottom line.

At Commercial Pro Shield Insurance, we help tow truck businesses navigate the complex world of commercial insurance every day. Here's what’s driving the rise in rates this year—and some smart ways to save.

Why Tow Truck Insurance Rates Are Increasing in 2025

1. Rising Repair & Parts Costs

Tow trucks are specialized vehicles, and parts for them are often more expensive than for standard commercial trucks. In 2025, supply chain delays and inflation continue to push those costs even higher—meaning insurers are paying more for claims and passing the cost to you.

2. More Claims, More Liability

The towing industry is high-risk by nature. Accidents involving heavy equipment, disabled vehicles, and roadside operations can result in significant claims. As claim frequency rises across the industry, insurance providers raise premiums to offset losses.

3. Driver Shortages & Experience Gaps

Skilled drivers are harder to find, and insurers are wary of covering inexperienced operators. Companies that can’t prove solid driver records may see higher premiums—or even get declined for coverage.

4. Fraud & Legal Trends

An increase in staged accidents and aggressive legal action from third parties is also driving up the cost of tow truck insurance. Some states have seen large verdicts awarded in recent years, which impacts everyone’s rates.

5. Regulatory Changes

Certain states have updated their minimum liability requirements or changed what types of coverage are required. These changes can lead to higher base premiums, especially for operators who cross state lines.

How to Save on Tow Truck Insurance in 2025

The good news? You can still take steps to control your costs. Here are some proven ways to save on tow truck insurance this year:

1. Bundle Your Coverages

Combine auto liability, garage liability, on-hook towing, and physical damage under one policy to take advantage of multi-line discounts.

2. Work with a Specialized Agency

At Commercial Pro Shield Insurance, we focus on the towing and trucking industries. That means we know where to find competitive rates and tailor coverage to your exact needs—no fluff, no overspending.

3. Keep Driver Records Clean

Invest in driver training and only hire experienced, licensed drivers. Clean MVRs (Motor Vehicle Records) can significantly reduce your insurance premiums.

4. Implement Safety Programs

Having written safety policies, dash cams, GPS tracking, and regular vehicle maintenance can show insurers you're a lower risk—and qualify you for discounts.

5. Review Your Coverage Annually

Your business changes. So should your insurance. Don’t just auto-renew—review your policy each year to eliminate unnecessary coverage and shop for better rates.

Bottom Line

Yes, tow truck insurance rates are climbing in 2025—but you’re not powerless. With the right partner and proactive planning, you can reduce your premiums while still protecting your business.

At Commercial Pro Shield Insurance, we help tow operators across the U.S. find the right coverage at the right price. Whether you’re a new venture or a seasoned fleet, we’re here to guide you through the process, cut unnecessary costs, and protect what you’ve built.

Ready to Review Your Tow Truck Insurance?

Let’s talk. Get a free, no-obligation quote today from the experts at Commercial Pro Shield Insurance.