How to Start a Towing Business

by Jessica Jones ; Updated September 26, 2017
You must first secure a license from the state in which you live.

To start a tow-truck business, you must first secure a license from the state in which you live. Before investing the necessary time and money, thoroughly research what is involved in starting and running this type of business. Towing companies can be profitable, but usually only after years of hard work.

Contact the Department of Motor Vehicles to determine the types of licenses you will need to operate. Complete all required driver tests and show proof of insurance before you open for business.

Create a 12-month business plan that outlines up-front costs for training, tow-truck maintenance costs, rent for impound lots, marketing and hiring. Devise a marketing plan as well.

Take out a business loan if you don't have investment money available. Give lenders your business plan and any other information they request.

Find an insurance provider that specializes in tow-truck insurance. Obtain estimates to determine the best type of coverage, as well as the most affordable monthly premiums. Tow-truck insurance may cover equipment, impound lots, employees and repairs to cars and trucks that may become damaged during the towing process.

Learn how to safely drive a tow truck. You can take courses or learn from someone working in the business.

Register your business by filling out and submitting all forms designated by your state.

Increase profits and maintain a steady stream of work by advertising your towing business through direct-mail marketing, online and in local phone directories. Contact parking lots and other companies to obtain exclusive towing contracts.

About the Author

Based in the Washington metro area, Jessica Jones has been a freelance writer since 2006, specializing in business topics. Her fiction has also been featured in publications such as "The Jamaican Observer Sunday Literary Supplement" and at websites including HackWriters. Jones earned a Master of Fine Arts in fiction writing from Lesley University.

Photo Credits

  • towing truck image by Aleksandr Ugorenkov from Fotolia.com
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