Tow Truck Insurance Requirements in Illinois

We understand the importance of having easy access to important Towing Information and Requirements. This article provides the specific requirements set forth by the Secretary of State for flatbeds and tow trucks before issuing the “TW” plates necessary to operate a towing company. Whether your business focuses on towing, auto transport, salvage, repossession, collateral recovery, or relocation services, we’re committed to helping you secure the coverage you need—at the most competitive rates available.

At Urban Insurance, we have been serving the needs of towing companies for over 65 years.

On this page we have assembled the key Insurance requirements for operating a Towing companies in Illinois. After decades of working with towing providers to find them the coverage they need, we have gained a deep understanding of many of the challenges and obstacles that towers face, and how to meet the State of Illinois and Indiana’s demands. Jumping through the hoops of the Secretary of State is mandatory; but it’s also critical to do so while keeping your insurance cost affordable.

Tow Truck Registration

Secretary of State of Illinois
Insurance Requirements for Tow Trucks
(625 ILCS 5/12-606) (from Ch. 95 1/2, par. 12-606)

When registering your Tow Truck, you must provide the Secretary of the State with a Certificate of Insurance proving that you have active insurance that meets, or exceeds, the State’s requirements. The Certificate of Insurance must demonstrate the following minimal coverages:

A. Automobile liability — $500,000 CSL (combined single limit)
B. Garage liability — $500,000 CSL (combined single limit)
C. On-hook coverages — $25,000

While the above coverages must alway be present, the two below do not alway apply.

D. Garagekeepers — $25,000
E. Workers Compensation

Garagekeepers, often called GKLL (Garage Keepers Legal Liability) is designed to cover vehicles in your Care, Custody, or Control.
The key question to ask yourself is: Do I have a garage or lot, and do I store customers cars and trucks-If the answer is YES
than you are going to need add Garagekeepers to your policy.

Workers Comp insurance is required if you have employees, if you are the owner and sole driver, you can avoid that policy.

Certificate of Insurance Requirements for Towing Companies in Illinois

To comply with state regulations, your Certificate of Insurance must meet the following criteria:

Expiration Date: Must either expire on December 31 of the current registration year or state that the policy is continuous.
The Certificate must also state that the Secretary of State will be notified of a cancellation 30 days prior to the final date.
Vehicle Listing: The certificate must specify each vehicle covered under the policy.
Matching Information: The name and address of the insured must match the name and address on the vehicle registration.
Certificate Holder: Must list the Secretary of State as the certificate holder.
Policy Number: The certificate must clearly indicate the policy number

Insurance Requirements for Relocation Towing Companies in Illinois

Towing companies that relocate vehicles must meet specific, higher, insurance requirements as set by the Illinois Commerce Commission (ICC).
Towers acting as Relocators or Repossessors require an MC number.

The current minimum coverage requirements are:

$750,000 CSL Liability (Commercial Auto)
$750,000 CSL Garage Liability (required towing coverage)
$25,000 Car-On-Hook Coverage

At Urban Insurance, we specialize in helping towing companies stay compliant. We provide the insurance certificates required by the ICC for your filing—ensuring a smooth and timely process.

We also understand the exact coverage the Secretary of State requires on your Certificate of Insurance before renewing your TW Plates. Let us help you meet all regulatory requirements while keeping your premiums as low as possible.

Towing Information and Links

If you have a question, please Click here or call us at 800-680-0707

Urban Insurance Agency, LLC
915 W Huron St #C-105,
Chicago, IL 60642
312-664-8088