How Much Does It Cost to Start a Towing Company? Full Startup Budget
How much it costs to start a towing company
In this article
Starting a towing company usually costs about $50,000 to $150,000 with one used light-duty truck, and $150,000 to $400,000+ with a new truck or heavy-duty equipment. The truck and the insurance are the biggest costs. You can start for less with roadside assistance only.
These are rough US ranges. Get real quotes in your area before you commit.
Startup cost breakdown
| Item | Typical range |
|---|---|
| Used light-duty rollback or wrecker | $30,000 – $80,000 |
| New light-duty rollback | $90,000 – $150,000 |
| Heavy-duty wrecker (new) | $250,000 – $700,000+ |
| Insurance (first year, often paid upfront or as a deposit) | $8,000 – $25,000+ per truck |
| Licenses, permits, DOT number, LLC | $500 – $3,000 |
| Equipment (dollies, straps, chains, jump pack, lockout kit, lights) | $3,000 – $10,000 |
| Truck lettering and lights | $1,000 – $5,000 |
| Dispatch software and phone | $50 – $300 per month |
| Website and Google profile setup | $500 – $3,000 |
| Storage yard (if you do impounds) | Rent varies widely by area |
| Working capital (fuel, repairs, 3 months of bills) | $10,000 – $25,000 |
Sample budgets
| Plan | Total |
|---|---|
| Roadside assistance only (car or pickup + tools) | $5,000 – $20,000 |
| One used rollback, no storage yard | $50,000 – $100,000 |
| New rollback + storage yard | $130,000 – $250,000 |
| Heavy-duty recovery | $300,000+ |
Ways to lower the cost
- Buy a used truck with service records
- Finance the truck (equipment financing is common in towing)
- Start without a storage yard
- Shop insurance with brokers who specialise in towing
- Begin with motor club and roadside work while you build direct customers
Ongoing monthly costs
Truck payment, insurance, fuel, maintenance and tires, phone and dispatch software, yard rent and marketing. Track these against your average revenue per call.
Next: How to start a tow truck business and Is a tow truck business profitable?.
Frequently asked questions
How much does it cost to start a towing company?
Usually $50,000 to $150,000 with one used light-duty truck, more with new or heavy-duty trucks.
How much is a tow truck?
Used light-duty trucks often cost $30,000 to $80,000; new rollbacks $90,000 to $150,000; heavy wreckers much more.
How much is tow truck insurance?
Often $8,000 to $25,000+ per truck per year, depending on state, driving record and coverage.
Can I start a towing business with no money?
Not easily. Start with roadside assistance or drive for another tow company first while you save and build credit for financing.
Can you finance a tow truck?
Yes. Equipment loans and leases are common, especially with some industry experience.
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AI & automation engineer · websites, apps and motion design
I build AI agents, automations, websites, apps and motion design for businesses. These guides answer the questions people actually search, written from hands-on experience building them.
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