Insurance Navy launches tow truck insurance brokerage for towing companies

Insurance Navy said it has launched a tow truck insurance brokerage service that compares truck type, driver history and claims experience across carriers to find lower premiums for towing companies nationwide. The move comes as towing businesses face higher costs, tighter coverage requirements and a tougher commercial auto market.

Why it matters: - Towing companies are facing rising insurance costs while still needing to meet state and federal coverage requirements. - Insurance Navy is positioning the new brokerage service as a way for truck operators to reduce premiums without giving up liability, physical damage or general liability coverage. - The program targets a market of small businesses that often need brokered access to affordable commercial insurance.

What happened: - Insurance Navy announced a new tow truck insurance brokerage service for towing companies nationwide. - The brokerage compares truck type, driver history and claims experience across multiple carriers before recommending coverage. - Insurance Navy said the service is designed to help towing businesses control insurance costs while staying compliant with state insurance rules. - The company said the program is available through licensed agents who can help businesses get a quote in minutes. - A guide to the service is available here.

The details: - IBISWorld estimated the U.S. automobile towing industry generated $11.3 billion in revenue in 2025 across roughly 39,000 businesses. - The U.S. Small Business Administration classifies most towing companies as small businesses. - The National Association of Insurance Commissioners reported the national combined average auto insurance premium per issued vehicle reached $1,438 in 2023, up 14.42% from 2022. - Average auto insurance expenditures have climbed 19.21% since 2019. - Truck type is a major pricing factor, and Insurance Navy said it prices coverage by vehicle class rather than using a single blanket rate. - The service accounts for flatbed trucks, wheel-lift trucks and heavy-duty tow trucks. - For-hire tow trucks with a gross vehicle weight of 10,000 pounds or more doing interstate emergency moves must carry at least $750,000 in liability coverage, according to the Federal Motor Carrier Safety Administration. - Several states require towing companies to carry garage keepers and general liability minimums, and proof of coverage is required before a towing company can operate legally. - Insurance Navy’s coverage options include on-hook cargo insurance, on-hook towing coverage and comprehensive coverage for customer vehicles. - On-hook cargo coverage responds if a customer’s vehicle is stolen or damaged while being towed, and coverage follows the vehicle from pickup to drop-off. - The company said its underwriters review towing operations personally before issuing a commercial tow policy. - Driver history is the second major factor in pricing. - The National Institute for Occupational Safety and Health said the motor vehicle towing industry recorded a death rate more than 15 times the rate for all U.S. private industries between 2011 and 2016. - Towing operators recorded 204 nonfatal injuries per 10,000 full-time employees during that period. - The U.S. Government Accountability Office said nearly 350 motorists and more than 60 emergency responders are struck and killed each year by drivers who fail to follow Move Over laws. - Insurance Navy reviews driving records, underinsured motorist history and uninsured motorist claims before matching coverage. - Coverage can include hired auto and non-owned auto protection for rented tow trucks. - Workers compensation, medical payments insurance and fleet discounts are also part of the offering. - Claims experience also affects the final premium. - The Insurance Information Institute and the Casualty Actuarial Society said commercial auto liability claim severity rose 93.5% between 2015 and 2024. - Social and economic inflation added $52 billion to $70.8 billion in extra costs across the industry. - AM Best said commercial auto posted its fourteenth consecutive year of underwriting losses in 2024, totaling roughly $4.9 billion. - The U.S. Chamber of Commerce Institute for Legal Reform said nuclear verdicts of $10 million or more rose 52% in 2024. - Insurance Navy said it uses claims data and towing-specific risk factors to negotiate liability, property damage, legal fees and excess coverage limits. - The company also offers garage keepers, cargo, workers compensation, commercial auto and commercial property coverage. - Garage keepers coverage helps cover theft and vandalism damage to stored vehicles and protects customer vehicles held overnight. - The company said towing companies can also choose motorist insurance and roadside assistance under one policy. - The National Insurance Crime Bureau said vehicle theft nationwide fell 17% in 2024 to 850,708 reported thefts, but towing companies that hold vehicles overnight still face theft risk. - Insurance Navy said it negotiates rates directly with carriers and reviews liability limits at each renewal. - Coverage is provided the same day in most states, according to the company. - Insurance Navy said the brokerage works with multiple insurance providers so towing companies can get coverage built around their operations instead of a generic auto liability policy.

Between the lines: - The launch reflects a broader commercial auto market where underwriting losses, higher claim severity and litigation costs are squeezing carriers and policyholders. - By focusing on vehicle type, driver record and claims history, Insurance Navy is trying to make pricing feel more tailored in a segment where one-size-fits-all coverage can leave gaps or inflate costs. - The emphasis on on-hook, garage keepers and fleet-related coverage suggests the brokerage is aiming at real operating risks that standard personal auto policies do not address.

What's next: - Towing companies can request quotes and review coverage through Insurance Navy’s brokerage network. - The company said it will keep working with carriers at renewal to pursue lower rates and appropriate liability limits. - New and existing towing businesses can use the program to build policies around fleet size, operating scope and state requirements.

The bottom line: - Insurance Navy is betting that carrier-by-carrier comparison will help towing companies buy more precise coverage at a lower price in a volatile market.