Behind the Wheel: Understanding the Different Types of Coverage in Wrecker Insurance

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Wrecker insurance is crucial for towing companies and individual tow truck operators to protect themselves and their businesses from financial losses that may arise from accidents or other unforeseen events. However, navigating through the different types of coverage can be overwhelming. In this article, we will break down the various types of coverage available in wrecker insurance, providing you with a comprehensive understanding of each.

Wrecker Liability Coverage

Wrecker liability coverage is the foundation of any wrecker insurance policy. This coverage protects you financially if you are found responsible for causing an accident while operating your tow truck. It typically includes bodily injury liability, which covers medical expenses, lost wages, and legal fees for individuals injured in an accident caused by your tow truck. Property damage liability is another component that covers the cost of repairing or replacing damage to another person’s property, such as their vehicle or objects on their property.

Physical Damage Coverage

Physical damage coverage is essential for protecting your tow truck itself. It consists of two main components: collision coverage and comprehensive coverage. Collision coverage helps cover the repair or replacement costs if your tow truck is damaged as a result of a collision with another vehicle, object, or due to overturning. On the other hand, comprehensive coverage provides protection against non-collision-related incidents, including theft, vandalism, fire, and weather-related damages.

On-Hook Coverage

On-hook coverage is designed to protect your clients’ vehicles while in your care, custody, and control during the towing process. This coverage provides financial assistance in case the vehicle being towed sustains damage or is lost entirely due to an accident, fire, theft, or other covered events. On-hook coverage is crucial for tow truck operators, as it ensures that they are not held liable for any damages occurring to a client’s vehicle while it is being towed.

Garagekeepers Coverage

Garagekeepers coverage is aimed at protecting tow truck operators who also operate a tow truck storage facility or garage. This coverage provides compensation for any damages that may occur to a customer’s vehicle while it is in your possession. Whether the damage results from fire, theft, vandalism, or other covered incidents, garagekeepers coverage helps protect your business from potential financial liabilities.

Medical Payments Coverage

Medical payments coverage, sometimes referred to as MedPay, assists in covering medical expenses for anyone injured in your tow truck, regardless of who is at fault. This coverage is particularly important, as it helps ensure that medical expenses are taken care of promptly, potentially avoiding lengthy lawsuits arising from personal injury claims.

Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage is especially crucial for tow truck operators, as they often work in high-risk situations. This coverage provides protection in cases where you or your tow truck is involved in an accident caused by an uninsured or underinsured motorist. If the responsible party doesn’t have adequate insurance to cover your damages, this coverage steps in to compensate for your losses, including medical expenses and property damage.


Understanding the different types of coverage available in wrecker insurance is paramount for tow truck operators and towing companies. By having a comprehensive understanding of each type of coverage, you can ensure that you are adequately protected financially in the event of an accident or other unforeseen circumstances. Remember, wrecker liability coverage is the foundation, and from there, you can customize your policy with additional coverages, such as physical damage, on-hook, garagekeepers, and various other protections. Stay informed and choose the right wrecker insurance that suits your specific needs to safeguard your business and protect yourself behind the wheel.

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