Starting a tow truck company is a great option for budding entrepreneurs. There are a few things tow truck drivers must have to operate the business. Understanding things like towing insurance requirements can get your business started on the right foot.


Truck drivers in most states need a commercial driver’s license to operate a tow truck. Each state has its own requirements for obtaining a CDL. Check with the local municipal government to see what you need and how to apply for the license. You may need to do this step prior to buying a truck.


All small businesses benefit from a business plan. This plan can start off as a few pages and grow through the years. Include the name of the business, financing options, licensing requirements, growth projections, and marketing strategy in the business plan. As the business grows, there may be additional items to include to meet the next five-year plan.


As seen on, tow trucks need more than a standard auto insurance policy to operate. Businesses generally need more insurance coverage than regular drivers such as on-hook towing insurance.

Meeting towing insurance requirements helps you be ready to buy that first tow truck and start working. As your business grows, you may need additional requirements, especially when you hire your first employees.