How to Start a Tow Truck Business in 2023 Complete Guide

You’ll need to decide what type of towing services your company will provide and who will receive them. Non-consensual towing companies work with private property owners and law enforcement to tow vehicles illegally parked or otherwise in violation of the law. Towing isn’t always about helping someone with a broken car stranded in the middle of nowhere. As a tow trucker you’re also towing vehicles that have parking infringements – cars parked illegally or in red zones – headed for the impound lot. Similarly, there’s no minimum level of education required to become a tow truck driver, but here, too, companies make their own rules.

A typical charge will include a flat fee for the tow, a mileage fee, and a storage fee. The fixed ongoing expenses for a tow truck business include any licensing fees that must be renewed and insurance premiums.

Background Check

Many law enforcement entities, from small towns to state police, want to have a reliable towing company on contract, available 24/7. At these scenes, the driver may be exposed to disturbing sights and will need to deal with people who may be emotional, both upset and angry. Drivers will also need to preserve the vehicle if it’s considered a crime scene and may need to assist the police with specific information about a vehicle’s condition. Being able to handle these high-stress situations is an important part of the job. For the gross vehicle weight rating provided by the manufacturer, this information can typically be found on the driver-side door sill, in the owner’s manual or on the manufacturer website. The payload capacity is how much cargo the truck can haul in terms of weight. It is important to note that the payload weight includes the tongue weight of the trailer if a trailer is hooked up.

Required forms of insurance for all businesses with employees:

Some trucks are better suited for towing everyday cars like sedans and SUVs, while others might be made to tow large pieces of machinery or buses. The plus side to flatbed tow trucks is that they might be able to tow more than just a car. They can tow construction machines, motorcycles, and many other vehicles.

Read more about towing here.

Spend your marketing budget on advertisements in local newspapers, online forums, radio, and highway billboards. Print flyers and business cards and hand them out to local businesses. In addition, you should figure out your business budget and choice of location. You should know how much you will spend on a truck and other startup expenses for your company. Making these decisions early on will assist you in determining the structure of your towing business. Before we dive deep into the steps, you need to start a towing and recovery business.

This method is seen as the safest way because it requires little manual work from the driver while also only touching the wheels of the car being towed. Licenses often include a general business license, a commercial driver’s license for drivers, and any state-specific towing licenses. Certifications from industry organizations like the Towing and Recovery Association of America can bolster credibility. Training to become a tow truck driver is vital, as there are many laws and standards based on the state in which you will be working.

Permits and licenses – Depending on your location, you’ll need to acquire a handful of permits to legally operate a towing business . Additionally, any tow truck drivers you hire will need Class B driver’s licenses. Putting together a business plan for your towing truck company is a worthwhile endeavor.