How to start
a towing business.

1. Decide what work you will do

The work decides the truck, the permits, the insurance and how you get paid, so start here. Light-duty towing usually comes from some mix of:

• Motor clubs and roadside networks, which send calls at payouts they set.
• Police rotation lists and municipal contracts, which come with their own equipment, insurance and storage requirements.
• Private-property and impound towing, which is regulated closely in many places.
• Repair shops, body shops, dealers and auctions, and commercial fleet accounts.
• Cash calls from drivers who find you directly.

Heavy-duty work serves trucking companies, buses and equipment, and needs heavier trucks, more capital and experienced operators.

2. Choose the first truck for that work

A rollback handles the widest range of light-duty calls, a wheel-lift truck is quick for repossession and impound work, and a wrecker does recovery that a deck cannot. Compare them before you shop, then check what used trucks are listed for.

Rollback, wrecker, wheel lift or rotator? · Used tow truck prices · The used-truck checklist

3. Register the business and check the licensing

• Register the business with your state, and get the tax registrations that go with it.
• Under federal rules, a commercial vehicle used in interstate commerce generally needs a USDOT number once its weight rating reaches 10,001 lb. Many states apply similar rules to intrastate trucks.
• Driving a truck rated 26,001 lb or more generally takes a commercial driver’s license. Towing a heavy disabled vehicle can change which class applies.
• Many states, counties and cities license tow operators, especially for private-property and police-initiated tows, and rotation lists add their own requirements.

Rules differ by place and change. Check the Federal Motor Carrier Safety Administration’s registration guidance, your state’s motor vehicle or motor carrier agency, and your city before you start.

4. Get insurance quotes early

Coverages tow operators commonly carry include commercial auto liability, on-hook coverage for the vehicle you are towing, garagekeepers coverage for vehicles in your yard, physical damage for your own truck, general liability, and workers’ compensation once you have employees. Motor clubs, rotation lists and contracts often set minimum limits. Premiums vary widely, and a new company with no claims history can pay more, so price it before you commit.

5. Budget the start, not just the truck

Add equipment, upfit, permits, the insurance down payment, a yard and a cash reserve for the months before calls build up. Then check how many calls a month it takes to cover your fixed costs.

6. Price the work from your own costs

Know what a mile, an hour and a call cost you, count the empty miles, and set rates that cover them. Check whether any of your work falls under capped rates.

7. Line up the work

• Motor clubs and networks: apply as a service provider, read the payout and payment terms, and judge each offer against your costs with the motor-club call check.
• Police rotation: ask the agency for its requirements and application process.
• Local accounts: introduce yourself to repair and body shops, dealers and fleet managers, and make it easy to reach you around the clock.

8. Work safely

Roadside work is dangerous. Training and certification programs such as WreckMaster and the Towing and Recovery Association of America’s certifications, high-visibility gear, and traffic incident management training help. Every state has a Move Over law, though what it requires of drivers varies.

Associations, training and trade media