Starting a Business in Tow Trucking Services

Any entrepreneur who has the right set of skills will probably excel in any business industry he/she chooses to participate in. While there are plenty of options you can take your business expertise to, one of the best areas to thrive in is one that includes automotive.

However, selling automotive products is quite difficult because, despite many people having their own cars, the prices are quite high. Additionally, the automotive market is quite saturated, and it’s hard to find the balance where you will earn decent money to run your business while setting affordable prices on your products.

The question now is, which area of automotive could you still join? Car owners will inevitably encounter problems with their vehicles, and sometimes, it happens in the middle of nowhere. That’s why starting a tow truck business is a promising venture. That is, of course, if you know how to start. Don’t worry. We’ll help you with that.

Tow Trucking Service Types

Merely deciding to start a tow truck business is not enough to get you in the game. The first thing you need to determine is the type of tow trucking service you wish to provide. Generally, this service is divided into two categories; retail and non-consensual.


The first type of tow trucking service is called retail towing. This means that your business is more or less independent in the sense that you gather your own clients. Retail towing means clients or customers would call your company if they ever need roadside assistance.


On the other hand, non-consensual towing services are built on partnerships. Instead of having private clients call your business hotline for assistance, you would only provide services to the company you partnered with.


The next thing you need to prepare for is the cost of starting a new business. Tow trucking services can be quite expensive, but if you have the funds, you would have better chances of providing the best assistance to anyone who needs your business. Below are some things you need.


Obviously, you can’t start a business in tow trucking services without trucks. The type of trucks you need depends on the clientele you would probably have. If you only need to tow sedans or other regular vehicles, a mid-sized truck would be enough. However, towing bigger vehicles requires a more powerful truck.

Towing Equipment

There are lots of things you need to equip in a truck for it to tow another vehicle. These include quick picks, winch cables, and booms. This will allow you to attach the vehicle to your trucks. Make sure that you choose quality equipment because you might face certain lawsuits, fines, and penalties if the vehicle suddenly detaches or suffer damages from the towing process.

Light Bar

Building upon what we’ve mentioned above, you need to stay safe while towing another vehicle on the road. This means that other drivers should be able to see your truck and the vehicle you’re towing even in the dark. That’s why you should also invest in LED light bars to signal other drivers about the situation. This is an essential part of running a tow truck business.


You can’t just tow another vehicle from the side of the road without permits from the local government. That’s why while you’re building your business, make sure that you also handle the permits, licenses, and other paperwork you may need to operate legally. It’s also important to note that your tow truck drivers should also have a Class B driver’s license.

Tow Truck Business

Insurance Coverage

Lastly, you also want to ensure that your business has insurance coverage. This will provide you with a safety net if something happens to your employees or the business itself. While there are many insurance policies you could avail of, below are some of the necessary ones.

Workers’ Compensation

A tow trucking business is generally not dangerous, but there are still hazards driving on the road. Under the Workers’ Compensation Law, you need to cover the medical costs if an employee suffers a disability or injury while working.

Professional Liability

Car owners are generally protective of their vehicles. This means that they will probably file negligence claims if they assume that their vehicles suffered further damage because of the towing process. You need to defend your business from this kind of situation. You can do that by having professional liability insurance.

A business in tow trucking services may be quite difficult to build and run, but we can guarantee that you’ll be successful in this industry if you do it properly. Just make sure that you have all the necessary things to provide the best service to your customers.