Is on-hook coverage included with tow truck insurance?

On-hook coverage is not automatic, but it is one of the most important coverages a tow operator can carry, and we typically include it. On-hook (also called on-hook legal liability) pays for damage to a customer's vehicle while it is in your care during a tow, hookup, or recovery. Garagekeepers legal liability is a related coverage that protects vehicles stored on your lot or in your yard. We help you set both limits based on the value of the vehicles you handle.

Do tow truck operators need special filings in Virginia?

Many tow operations do. Tow businesses in Virginia generally register with the DMV, and operators who perform police-ordered or municipal towing are usually required by the locality to carry specific liability limits and to name the city or county as an additional insured on a certificate of insurance. Interstate for-hire tow operators may also need federal filings. We make sure your policy is structured to satisfy the filings your contracts and jurisdictions require.

What commercial vehicle insurance is required in Virginia?

Virginia requires liability coverage on every registered vehicle, and as of January 1, 2025 the state minimum is 50/100/25 ($50,000 bodily injury per person, $100,000 per accident, $25,000 property damage). Commercial operators almost always carry substantially higher limits, and motor carriers hauling for hire or operating in interstate commerce often need federal filings such as the MCS-90 endorsement and FMCSA authority. The right limits depend on your vehicle weight, cargo, and where you operate. Our licensed advisors can confirm exactly what your operation needs.

Tow Truck Insurance Requirements

Required and Recommended Coverages for Tow Operators

Towing carries more exposure than most commercial vehicle work, because you are responsible not only for your own truck but for every vehicle you hook, haul, and store. Coverage reflects that layered risk.

Commercial auto liability is required to operate, and physical damage protects your own wreckers and flatbeds. The coverages that truly define a tow policy, though, are on-hook legal liability and garagekeepers legal liability, which protect the vehicles in your care.

Commercial auto liability for your trucks on the road
Physical damage for wreckers and flatbeds
On-hook legal liability for vehicles being towed
Garagekeepers legal liability for stored vehicles

On-Hook vs. Garagekeepers Coverage

These two coverages are easy to confuse but cover different moments. On-hook responds when a customer's vehicle is damaged while connected to your truck during a tow, hookup, or recovery. It is the coverage that protects you when a vehicle is dropped or damaged in transit.

Garagekeepers responds once a vehicle is on your lot or in your impound yard. The legal liability form pays when the operator is found legally responsible for the damage. A direct primary form is also available and covers perils such as fire, theft, vandalism, and weather regardless of fault. Many operators need both on-hook and garagekeepers, and the right form and limits depend on the value and volume of vehicles you handle.

Virginia Filings and Municipal Compliance

Tow businesses in Virginia generally register with the DMV, and the bigger compliance hurdle is usually at the local level. Cities and counties that maintain police-rotation or municipal tow lists almost always require operators to carry specific liability limits and to name the locality as an additional insured on a certificate of insurance.

These requirements vary by jurisdiction, and falling out of compliance can mean losing your spot on a rotation list. Interstate for-hire tow operators may also need federal filings. We track these requirements so your policy and certificates keep you eligible for the work you depend on.

Common Mistakes That Leave Tow Operators Exposed

The most frequent gap we see is an operator who carries liability and physical damage but skips or underinsures on-hook coverage, leaving them personally exposed when a customer's vehicle is damaged. Another is letting an additional-insured certificate lapse and quietly dropping off a municipal rotation list.

Underestimating the value of vehicles handled is a third. A flatbed that occasionally moves high-value trucks or equipment needs limits to match. We review your actual operation to make sure your limits reflect what you really tow and store.

How to Get a Tow Truck Policy in Place

Have your truck details, your operators' license information, the towing services you provide, your storage situation, and any contract requirements ready.

Call (703) 551-2000 or request a quote online, and a licensed advisor will structure on-hook and garagekeepers limits and issue the filings your contracts require. For coverage details, see our tow truck insurance page.

Written & reviewed by

Cascade Commercial Lines Team

Licensed Commercial Insurance Advisors, Cascade Insurance Group

The Cascade Trucks Insurance team is the commercial lines division of Cascade Insurance Group, an independent agency based in Manassas, Virginia. Our licensed advisors place commercial auto, trucking, and fleet coverage for Virginia operators every day, working across multiple carrier partners to match dump truck, tow truck, contractor, and livery businesses with the right protection. The guides we publish reflect day-to-day experience with Virginia DMV requirements, FMCSA filings, and the coverages that keep commercial vehicles compliant and on the road.

Licensed property & casualty advisors in Virginia
Commercial auto, trucking & fleet specialists
Independent agency representing multiple carriers
Based in Manassas, VA, serving operators statewide

Last reviewed: 2026-06-08

FAQ

Frequently asked questions

Is on-hook coverage included with tow truck insurance?: On-hook coverage is not automatic, but it is one of the most important coverages a tow operator can carry, and we typically include it. On-hook (also called on-hook legal liability) pays for damage to a customer's vehicle while it is in your care during a tow, hookup, or recovery. Garagekeepers legal liability is a related coverage that protects vehicles stored on your lot or in your yard. We help you set both limits based on the value of the vehicles you handle.
Do tow truck operators need special filings in Virginia?: Many tow operations do. Tow businesses in Virginia generally register with the DMV, and operators who perform police-ordered or municipal towing are usually required by the locality to carry specific liability limits and to name the city or county as an additional insured on a certificate of insurance. Interstate for-hire tow operators may also need federal filings. We make sure your policy is structured to satisfy the filings your contracts and jurisdictions require.
What commercial vehicle insurance is required in Virginia?: Virginia requires liability coverage on every registered vehicle, and as of January 1, 2025 the state minimum is 50/100/25 ($50,000 bodily injury per person, $100,000 per accident, $25,000 property damage). Commercial operators almost always carry substantially higher limits, and motor carriers hauling for hire or operating in interstate commerce often need federal filings such as the MCS-90 endorsement and FMCSA authority. The right limits depend on your vehicle weight, cargo, and where you operate. Our licensed advisors can confirm exactly what your operation needs.

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Tow Truck Insurance Requirements