How to Start a Tow Truck Business: Trucks, Licenses, Insurance and Getting Calls

To start a tow truck business, pick your niche (light-duty, roadside, private property impounds or heavy-duty), form an LLC and get your state towing license, USDOT number and insurance, buy a used rollback or wrecker, then get calls from motor clubs, police rotation lists, body shops and Google. Most new owners start with one truck and drive it themselves.

Step 1: Choose your type of towing

Light-duty plus roadside assistance is where most people start.

Step 2: Research local rules

Towing is regulated by state, county and city. Check:

• State towing license or permit (some states require one, many cities do)
• USDOT number if you tow across state lines or the combined weight is over 10,001 lbs
• A CDL if your truck's gross weight rating is over 26,000 lbs (most light-duty rollbacks are under this)
• Non-consent towing and impound rules, including maximum fees
• Storage yard zoning

Step 3: Form the business

Register an LLC, get an EIN, open a business bank account and set up bookkeeping from day one. Fuel, maintenance and insurance add up quickly.

Step 4: Get insurance

Towing insurance is one of your biggest costs. Typical coverage:

• Commercial auto liability
• On-hook coverage (damage to the car you're towing)
• Garagekeepers (vehicles in your storage yard)
• General liability
• Workers' comp once you hire

Step 5: Buy your truck and equipment

• Rollback / flatbed: most versatile; safe for AWD and damaged cars
• Wheel-lift / wrecker: faster for parking and repo work
• Used trucks cost much less than new
• Add dollies, straps, chains, lights, jump packs, lockout kit and safety vests

Full numbers: How much does it cost to start a towing company.

Step 6: Set your prices

Common charges: a hook-up fee, a per-mile rate, after-hours and holiday surcharges, winching, storage per day and roadside service calls. Check your local maximums for police and non-consent tows.

Step 7: Get calls

1. Motor clubs (roadside assistance networks) send steady but lower-paying jobs
2. Police rotation lists: apply with your city or county
3. Body shops, dealerships and mechanics for transport
4. Apartment complexes and businesses for private property towing contracts
5. Google Business Profile and a mobile-friendly website with a click-to-call button, because people call the first tow company they find

Step 8: Use dispatch software

Towing software tracks calls, drivers, invoices, photos and impounds. It also helps you get paid faster by motor clubs.

Once you're running: How to run a successful towing business and Is a tow truck business profitable?.

Frequently asked questions

How do you start a tow truck business?

Choose your niche, get licenses and insurance, buy a truck, and sign up with motor clubs, police rotations and local businesses.

Do I need a CDL to start a towing business?

Usually not for light-duty rollbacks under 26,001 lbs GVWR. Heavy-duty wreckers need a CDL.

How many trucks do I need to start?

One. Many owners drive their first truck themselves and add trucks as calls grow.

How do tow companies get business?

Motor clubs, police rotation lists, body shops, private property contracts and Google searches.

Can I start towing without a tow truck?

You can start with roadside assistance (jump starts, lockouts, tires) and add a truck later.