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Texas · TDLR licensing & permit-based limits

Texas tow truck insurance, built for TDLR permits.

Coverage for Texas tow operators — built for TDLR’s permit-specific insurance minimums, the Vehicle Storage Facility license, and the TxDMV “Tow Truck” plates your units must run.

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Structured to TDLR permit-type insurance minimums
Garagekeepers for licensed Vehicle Storage Facilities
Specialty & E&S markets that write TX towing risk

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Texas tow truck, in plain terms

Texas is one of the most explicitly regulated towing states in the country. The Department of Licensing and Regulation licenses tow companies, tow trucks, tow operators, and vehicle storage facilities, and it sets the minimum insurance amounts directly by permit type. If you run wreckers in Texas, your required limits depend on the kind of tows you do. Here is how it works.

How Texas licenses towing under Chapter 2308

Towing in Texas is governed by Texas Occupations Code Chapter 2308 and administered by the Texas Department of Licensing and Regulation (TDLR). Tow companies, individual tow trucks, and tow truck operators must all be licensed by TDLR, and each tow truck needs its own permit to operate on public streets. A separate Vehicle Storage Facility (VSF) license is required for any privately owned lot that stores 10 or more non-consent vehicles per year, and everyone working at a VSF — including the person who answers questions about releasing a vehicle — must be licensed.

TDLR insurance minimums by permit type

TDLR sets the minimum insurance directly, and the amount depends on the type of tow truck permit you hold. Per the TDLR tow truck permit requirements, the minimums (per truck, per incident) are:

  • Incident Management permit (non-consent tows from a roadway or initiated by a peace officer): $500,000 liability and $50,000 cargo / cargo-on-hook.
  • Private Property permit (non-consent tows authorized by a parking-facility owner): $300,000 liability and $50,000 cargo / cargo-on-hook.
  • Consent Tow permit (tows summoned by the vehicle owner): $300,000 liability; cargo insurance not required.

How the certificate and the filing actually work

Texas ties your permit to your insurance electronically. Your policy must come from an insurer licensed to do business in Texas, every certificate must state that the insurer will notify TDLR 30 days before any cancellation, and the name and address on the certificate must exactly match your application. After you apply, your insurance company files your policy information electronically with TDLR, and you can print your cab cards once the coverage is active in the system.

On the vehicle side, Texas requires registration in the business name, “Tow Truck” license plates from TxDMV for units run on public roadways, manufacturer capacity documentation for the boom and winch, and conspicuous signage. We structure your liability, cargo/on-hook, and garagekeepers coverage to the permit types you hold and make sure the certificate is written the way TDLR requires.

Texas tow truck — Frequently Asked

Questions Texas operators ask.

How much insurance does Texas require for a tow truck?
TDLR sets the minimum by permit type, per truck and per incident. An Incident Management permit (the one needed for non-consent tows from a roadway or initiated by a peace officer) requires $500,000 liability plus $50,000 cargo or cargo-on-hook. A Private Property permit requires $300,000 liability plus $50,000 cargo/on-hook. A Consent Tow permit requires $300,000 liability with no cargo requirement. These are floors — police rotation work and motor-club contracts often require higher limits, and you will still want garagekeepers coverage for any stored or impounded vehicles. We structure your program to the permit types you actually hold and the contracts you serve.
Do I need separate coverage for my storage lot in Texas?
If you store 10 or more non-consent vehicles a year you need a TDLR Vehicle Storage Facility (VSF) license, and that storage exposure is not covered by your tow truck’s liability or cargo-on-hook insurance. On-hook coverage ends when the vehicle comes off the truck; once it sits in your lot, garagekeepers legal liability is what responds to fire, theft, vandalism, or collision while the vehicle is in your care. Most Texas operators who run a VSF carry both. We make sure your VSF storage exposure is covered alongside your permit-required liability and cargo limits.
Why won’t my regular commercial auto policy cover towing?
Standard commercial auto and fleet policies are not built for tow operations and typically exclude the two exposures that define towing: liability while a customer’s vehicle is hooked or loaded on your truck, and damage to vehicles stored in your lot. They also treat the recovery and roadside work itself as a higher-risk class. Towing needs a purpose-built program — primary commercial auto liability plus on-hook (in-tow cargo) and garagekeepers legal liability — and much of it is written through specialty and Excess & Surplus (E&S) carriers. Running a wrecker on an ordinary auto policy risks a denied claim and will not satisfy a police rotation list or a motor-club contract.
What is the difference between on-hook coverage and garagekeepers coverage?
They protect a customer’s vehicle at two different stages, and most operators need both. On-hook (also called in-tow cargo) covers the vehicle while it is connected to your truck — hooked, lifted, or loaded on a rollback — from the moment you secure it until you drop it off; limits commonly run $50,000 to $150,000 per occurrence, with higher limits for exotic or luxury loads. Garagekeepers legal liability takes over once the vehicle is parked in your impound lot or storage yard, covering fire, theft, vandalism, and collision while it sits in your care, custody, and control. Neither is included in a basic auto policy, and a single damaged high-value vehicle can exceed a thin limit quickly.
Other States

tow truck insurance in other states.

California · CHP rotation & CPUC permittingFlorida · Ch. 323 wreckers & §713.78 liens

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