How to Start a Towing Business?

If you are looking for a good business venture that you can invest on, you might want to take a look at the money earning potentials of engaging in the tow business industry. Aside from the fact that there is less competition in the tow truck business, entrepreneurs that are engaged in auto towing businesses are more often assured of stable profits owing to the small number of towing companies that exist.

If you want to start a towing business, the following information can prove to be helpful:

car towing

Start up cost and requirements

You will need a license to operate a towing company. Remember however that you need to be patient in securing a towing truck business license because obtaining a towing license can prove to be difficult. This is because towing licenses are strictly regulated.

People who are planning to invest in a tow truck business must also have at least $10,000 for a towing business start up capital. The starting capital for a towing company however can vary depending on your location and the type of operation you intend to have. In urbanized areas for example, you might need around $200,000 if you are going to purchase a tow truck and a towing license.

Operating a Towing Company

Starting a towing company will not guarantee you that people will automatically call for your towing services business services when they need help in towing vehicles. You must do something so people will know about your auto towing business company. It is therefore best if you can have a good marketing strategy so people will remember your towing business should they need the services of a towing company.

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You can post ads in local newspapers so people can read and know about you. It is also a good idea to contact companies that might need towing businesses to service them when they need to tow illegally parked cars in their vicinity. Towing business operators are also advised to come up with easy to remember names and phone numbers so people can easily recall their company when vehicle towing services are needed.

A towing business is a good business opportunity given the small number of competitors in the industry. If you intend to invest in a vehicle towing business, make sure that you have the necessary capital needed as start up cost for your vehicle towing business. It will also help if you have an effective marketing strategy so people can easily contact your towing business when they need auto towing providers.

It is always better to focus on a small part of your niche as the market has grown very big and it will be tough to compete with others when you are just starting and don’t have a specialized service. When I say specialized service then I mean either you concentrate on starting heavy duty tow trucks business, boat towing service, bike towing, etc.

It is always advised to buy used tow trucks to start the business rather than going for new one. If you buy the used ones then you save on your budget and can use the extra money on advertising your towing business because end result depends on the number of hours you keep your tow trucks busy.

Watch this Training Video, If You Wish to Start This Business

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623 Comments

  • glenn isom said on February 5, 2008
    how much capital needed as start up cost for your vehicle towing business
  • freddy martinez said on March 12, 2008
    I want to start a tow service in lubbock but I dont know where to start looking for information on the business, should I do indivisual truck insurence? Just send me basic information to start the business. My email is [email protected]
  • Jonny Johnson said on April 4, 2008
    How do I ensure that all business comes through the company instead of the driver earning significantly from 'unknown' business. E-mail: [email protected]
  • k said on April 16, 2008
    What class license you need to operate a tow truck in utah?
    thank you, k
  • [email protected] said on April 23, 2008
    My husband and I just made our last payment for our tow truck. We have a 2 acre property, the property is commercial. All I want to know is how to get the website for the DOT that shows who is the current owner of the vehicle that have been towed. I need to make sure that the people who come the pick up the cars are the current owners. Can you please help with that website. I know you have to pay like 1dollar for each vehicle you look up. DO you know about this website.
  • towinmotion said on May 2, 2008
    How do you get the business of insurance companies or other businesses who need towing service?
  • Feroz  said on May 18, 2008
    I am planning to start a tow truck business in Northern Virginia. Where can I find information on the licensing?
  • Pragland said on May 19, 2008
    How do I find demographic research on starting a tow truck company?
  • Festus said on May 28, 2008
    I am planning to start a tow truck business in PA, where can I get funding to start my business and can I get client?
  • mrsgreenkyt said on June 5, 2008
    Does anyone know if there are loans out there for single moms that are looking to start there own business? If you know of loans where do I need to go? please post here. Thank you.
  • k.love said on June 12, 2008
    I and my man are thinking about starting a towing business but with only 1 or 2 trucks and go from their, you have any ideas contact me at [email protected]
  • robert said on June 15, 2008
    I want to start a small tow truck business how do i get the financing to start the business any help will be greatly appreciated
  • [email protected] said on June 29, 2008
    I'm trying to start my own wrecker services, how do i get the financing for that,, is there any way i can get some type of grant to start,,and where can i find out how much starting capital do i need,, thnxs jaypee
  • shawn said on July 19, 2008
    Is there anyone you know who provides finance for people looking to purchase commercial vehicles or trucks? I am planning to start a tow truck business in TX, where can I get funding to start my business and can I get client? I am planning to start a tow truck business in Northern Virginia. Where can I find information on the licensing? d [email protected]
  • Sarah  said on August 4, 2008
    Where do I get a towing license? I'm getting ready to start a tow truck company in Iowa. Can anyone help me with questions?? [email protected]
  • [email protected] beginner adviser said on August 25, 2008
    If you are interested in good coverage, as well as good premiums, then you need to take some time to understand all this "insurance stuff". We want to help you keep your premium as low as possible. We understand the industry and provide customized insurance packages that meet the specific needs of our clients.

    LET ME HELP YOU UNDERSTAND TOWING AND RECOVERY INSURANCE. Call Travis Barlow Company for a FREE INSURANCE GUIDE and for a FREE INSURANCE ESTIMATE at 800-537-7152 - ASK FOR ANN at EXT. 3108. www.travisbarlow.com

    800-537-7152(3108) || Towing Business Insurance Agent

  • Demetria said on August 27, 2008
    I want to start a towing and recovery business. I need information on this type of business please send me all information on starting this type of business at [email protected]
  • TERRI said on August 28, 2008
    I want to start a towing service business. I need information on this service. Please send me all information that is needed for starting this type of business to [email protected]
    Thank you.
  • Admin said on August 29, 2008
    Terri, dee corner
    What kind of information you are looking for? If you have any particular question then please drop in here so that we can answer that.
  • ule said on September 4, 2008
    hi i have a Q how do i get started on building my own tow truck i live in garnanda hills,CA(san fernando valley) i want to customized my own!!
  • kathy said on September 7, 2008
    MY HUSBAND AND I WANT TO START A TOWING BUSINESS, WHERE DO I BEGIN AND HOW MUCH CAPITAL NEEDED IN KENTUCKY? E-MAIL ME AT [email protected]
  • todd77 said on September 18, 2008
    I want to start my own towing business in Colorado, i need information on how to get a license. Also any other information i need to start my own towing company.
  • todd77 said on September 18, 2008
    I want to start my own towing company in Colorado, and need some information on how to get a license. Also would like any other information about this subject. can be reached at [email protected]
  • Craig and Elizabeth Mena said on September 23, 2008
    We want to start a repo towing service what is required for the state of Phoenix,AZ. do we need to our email is [email protected]
  • avad ratliff said on September 26, 2008
    hi i m looking to start a tow truck service in new. Can you send me any information please. thanks[[email protected]]
  • tara said on October 3, 2008
    I want to know how to start a tow truck business in Cleveland I would greatly appreciate any information concerning tow [email protected]
  • vikesh ramputh said on October 13, 2008
    Require more info in starting a tow in business based in Kwa Zulu Natal. Please contact me on 0844876012
  • Svea Pendleton said on October 15, 2008
    MY HUSBAND AND I WOULD LIKE TO OPEN A TOWING BUSINESS AND I NEED TO KNOW HOW TO GET STARTED AND WHAT I NEED AND WHAT IT TAKES? I NEED TO KNOW HOW TO GET THE LICENSE AND THE BASICS ON THE TOW TRUCK BUSINESS. CONTACT ME AT [email protected]
  • Rob  said on October 20, 2008
    I live in Tennessee and i would like to start a towing business and need to know kind of license and insurance and also some info about getting in the state rotation. I'm looking into getting one light duty wrecker and a medium duty rollback under cdl. Any info would be great. [email protected]
  • Luc said on October 22, 2008
    I want to start a tow service in Florida but I don't know where to start looking for information on the business, should I do individual truck insurance? please send me basic information to start the business. My email is [email protected] and how much capital needed as start up cost for your vehicle towing business
  • PAZZ said on October 22, 2008
    JUST WANTED TO KNOW, IF ANYONE CAN PLEASE HELP ME WITH INFO, ON HOW I CAN START THIS TYPE OF BUSSINESS. AND WHAT KIND OF LIC, WOULD I NEED, I WANT TO GET THE TOWNING STARTED LIKE IN STRIP MALLS ILEAGALLY PARKED CARS IF THERE IS ANY INFO. PLEASE E-MAIL ME AT. [email protected] THANK YOU
  • Nicole said on October 22, 2008
    Looking to start a towing company / used car dealership in MA working with charities. Have a couple of quotes on trucks and ideas where to find an angel investor for the start up capital? I have a business plan all worked out, but i just don't have the money to back it up. Anyone have more information please email me @ [email protected]
    Thank you any input will be appreciated.
  • Byron said on November 2, 2008
    I want to start a towing/recovery business in North Carolina,I would like any information anyone could provide about financing, licenses, training, equipment. I can be reached at [email protected] Thankyou.
  • Coddy  said on November 4, 2008
    I found this page very informational. If you could send me any more information I am looking at starting a tow company in Usk WA. My email is [email protected] Thanks Coddy
  • tammy said on November 5, 2008
    I'm trying to find out what i need to do to just do city towing. what all do i need to start that and do i need some kind of occupational license & do i need to file a fictitious name. please help
  • ghosty said on November 9, 2008
    i have been towing for 9 years working for more than 5 companies light medium heavy now i am gonna buy a tow truck but i have a record and to get accounts is hard. any body that could help [email protected]
  • robert said on November 11, 2008
    I want to start a towing and recovery business. I need information on this type of business please send me all information on starting this type of business at [email protected]
  • john thomson said on November 14, 2008
    its a 24 hr job and the payoff is like earning 10 buck an hour after truck repairs insurance and all the other bills that comes with owning ur own truck. i have been doing for 7 years and its a very hard thing to do....
  • phenom beginner adviser said on November 15, 2008
    if anyone is in massachusetts looking to start up. I'm looking for a partner. i have a wrecker if you got a flatbed..lets get together..i know all the ins and outs and what needs to be done. i'm in the taunton/fallriver area.. i've been in the business for 7 years looking to get something going..[email protected]

    [email protected] || Towing Business Owner

  • Rocka said on November 25, 2008
    me and my friends are planning on starting our own towing company in the Bronx, NY. anyone have any info as in how much $ is needed as startup, licensin, and all that.
  • Richie said on December 2, 2008
    I have a rollback and just want to due some towing part time in Florida, any info would be great. send to [email protected]
  • Eric said on December 11, 2008
    I'm looking to start a Tow company in New Hampshire, any information on this would be greatly apprecaited. How to get licensed etc.. [email protected]
  • joe said on December 16, 2008
    A co-worker is planning on buying my boss' old tow truck, it's in pretty bad shape and my boss just bought a new one, the co-worker is planning on buying the old heap and doing some side work (NOTE: this is a Auto Repair shop not a big towing company, and he just tows for customers) so my boss is the only one that operates the wrecker and the co-worker wants to buy the old one so he can do some towing of his own to make some money for friends and stuff - now he does not have a Drivers License (suspended) let alone any type of operators license. Would he be able to operate the wrecker legally without an operator's license or some sort of business license?
  • Ree said on December 19, 2008
    I am looking for any information as well as some advice on opening my own towing company in NH. Anything will help, email me at [email protected] Thank you all in advance
  • dustin said on December 21, 2008
    I am thinking about starting a towing company in minnesota. where or who would i contact for licience and permits in my area?
  • [email protected] said on December 30, 2008
    I am in Houston Tx. I am interested in starting a repo company what would I need to start a Repo company.
  • Juan said on January 1, 2009
    How much training is required to operate a wrecker? Are there courses you can attend at a technical college?
  • jeremy Lisby said on January 7, 2009
    I want to start a towing company in Orlando FL but I am not sure where to start. I am hoping to get a ball park figure for what this licence would cost and a general idea of where to start in getting this licence. Any other helpful tips would be appreciated.
  • India said on January 7, 2009
    My husband wants to start his own tow business, right now he tows for a company for AAA. So I'm trying to find out what we need to do to get things rolling (ex. licenses, permits, etc.). Please email me at [email protected] Thank you
  • Damian said on January 10, 2009
    What all do i need to start a towing business? What size lot should i have? How much money do i need to start one in Alabama?
  • Guest said on January 11, 2009
    I was researching literature on how to start up tow biz in Phx, AZ like What license is needed and where to get it, and are truck inspections required. Where and by whom? Where do I look for work for tow truck with police dept. and city sources?
  • Bennett's Towing said on January 12, 2009
    I bought me a rollback wrecker 2 weeks ago. I already have a chauffers license and want to start a towing business in Indiana. Were do I need to go or who can I call to get a towing business license? And any other information. [email protected]
  • guest said on January 15, 2009
    trying to start a towing business in south carolina where do i start i.e. web sites lic, and any other helpful info. thanks
  • Jose said on January 18, 2009
    Looking to start a Repo biz in Idaho. What are the needs to get this off the ground???
  • Guest said on January 18, 2009
    I live in Southern California and interested in starting a tow service using a car carrier. Will I need a special license to operate a car carrier? If so, is there or where can I locate classes/courses? How could I determine the current or potential competition?
  • cynthia arnold said on January 21, 2009
    In Ohio the motor vehicle bureau said, as long as your truck is less than 54 tons you need no special licenses, is this really correct? I have contacts of businesses to try and get contracts before I purchase any truck but no one has responded. I have a truck, i can buy right now but until I secure some contracts I don't want to go farther. How can I get on the inside to get secure towing work?
    Thank you for your time
    Cindy arnold
  • Clayton Ahr said on January 22, 2009
    Hello i live in Cincinnati Ohio, would like to purchase a tow truck and start my own small co. Questions like: insurance, repo jobs and aaa tow? how to stay busy and make it and be successful? are there too many people out there doing this already?
  • David Fluellen said on January 25, 2009
    Hello I live in north east New Jersey, and I'm looking to start a tow truck business. I need help on finding information to get off the ground. Can you please email me info on permits, special licenses, insurance etc.. i would need. THANK YOU
  • dano said on January 29, 2009
    how much capital would i need if i already have a rollback, in the state of ct. i have the truck i just need the licence and insurance.
  • Cristina beginner adviser said on January 30, 2009
    Q: What license do I need to operate a tow truck in Arkansas?
    - A towing license is a requirement for any business that impound abandoned, inoperable or improperly parked vehicles. In Arkansas, one must secure a tow safety license and permit depending on the nature of the towing business. There is a license for a Consent Only towing, which means, the towing was done with permission from the owner of the vehicle; and there is another one for a Non-Consent Towing for unattended, abandoned, disabled or inoperative vehicle. The Web site of the Arkansas Recovery board provides information for those who want to contact the office regarding requirements for filing of a towing license and permit. The forms for licensing and permitting are also downloadable from the site. To get a license, the business' towing truck must pass inspection. The business must submit a copy of its Certificate of Liability Insurance. An additional insurance is required for a Non-Consent towing operator. Tow Safely License costs $100, while a Tow Vehicle Safety permit costs $36.00. The license and permit must be renewed yearly.

    Towing Business Adviser

  • Matthew said on January 30, 2009
    Hi!
    I have been thinking of starting a towing business. Why is there such a diverse amount of capital needed to start. I noticed $10k to $200k in capital was needed. Also I wanted to know how I could acquire funding to start the business. Is there any grant opportunities? If so can you assist me in my search. What are the pros and the cons, ans what can I expect for an earning potential of two trucks.. I thought of having a niche in recovery services for lending institutions seeing that the market for repossessions are extremely high. I appreciate any advice that you can give.
  • Jeanette Abreu said on February 2, 2009
    Hi! My husband and I are thinking of getting into the repo-towing business. Why is there such a diverse amount of capital needed to start. I noticed $10k to $200k in capital was needed. Also I wanted to know how we could acquire funding to start the business. Is there any grant opportunities? If so can you assist us in my search. What are the pros and the cons, ans what can we expect for an earning potential of two trucks. I thought of having a niche in recovery services for lending institutions seeing that the economy is so bad we believe that the demand for repossessions are extremely high.
  • DAMNED OL DAVE said on February 5, 2009
    I WOULD LIKE TO GET INFO ABOUT TOWING. WHICH IS BETTER REPO'S OR ABANDON CARS. IS THERE ANY DIFFERANCE IN FEES? THANKS DAVE
  • Jake said on February 5, 2009
    I would like to get all the information I can about getting into the towing business. All aspects of it. I would appreciate it. Thanks!!
  • ricky del rio said on February 8, 2009
    how much capital i need to open a tow truck business in fortmyers fl. I want to buy used trucks for this business.
  • ALLEN C said on February 9, 2009
    I AM LOOKING INTO STARTING UP MY OWN TOWING BUSINESS. WHAT MORE DO I NEED TO DO
  • Ryan said on February 15, 2009
    I am looking to start a towing business in the state of Florida. What kind of business license do I need? What kind of driver license do my drivers need? DO you know of a website that has more information on this topic? Please email me at [email protected] subject: "towing"
  • JOEL R said on February 18, 2009
    i am wanting to open a tow company in austin tx but i am in the military now, i only have a year left and is there any gov grants i can get or loans that are made available to me because of my military back ground, please let me now asap and what i need to do to start my business
  • vincent b said on February 22, 2009
    I am looking to start a towing business I already have a truck and DOT number and insurance, currently in the process of getting my license how do i go about a business plan, marketing, and advertising for my business for insurance companies and warranty companies. Also would like to know about any other helpful information. Please let me know as soon as possible I am ready to get my business off the ground and making money.
  • Night Stalker said on February 22, 2009
    I am looking to start a towing business and already own my rollback, how do i go about securing funding or a grant to start my business.
  • rich thomas said on February 23, 2009
    i am in michigan i have the funding to start a towing business do you know what type of license. i need to start and how to apply for my dot
  • sam said on February 25, 2009
    Hello i have a class a cdl lic and i have a tow truck already what do i need to do next now? I am just saving money now for my next step?
  • Ted said on February 25, 2009
    I am starting a towing business in Oregon and would appreciate any helpful advice.
  • Gerald said on February 26, 2009
    I want to start a small local towing company. I am in a great location to pick up vehicles that break down on a major interstate. I see tow trucks come from great distances to work in my area. I have a truck I just need a slide in wheel lift, and some insight on the licence, can you help?
  • Ted said on February 26, 2009
    I am starting a towing business in Oregon and would appreciate any helpful advice. Licenses needed, best place for insurance, marketing ideas and financing. Please email any information to Ted at [email protected]
  • chris said on February 27, 2009
    I am very interested in starting a towing & recovery business in willow springs, NC. Can u please email me some information or point me in the right direction to find some. My email is [email protected]
  • Ben said on March 1, 2009
    I am looking to start a Part-Time Towing company in Ct. since a am working 2nd shift. I own a Rollback and I Know I can make some good money moving cars, trucks, and equipment during the day part time but would also like to be a legitimate Business with insurance. I need help on finding insurance info for towing/hauling. Thank you.
  • Brock said on March 5, 2009
    I want to start a towing and recovery business in MD and I would appreciate any help you can provide to get me going in the right direction.
  • darryl ingram said on March 5, 2009
    I am interested in starting a towing business and would like to know more information on how to go about obtaining the funds to get started as well as the licenses needed. I am located in Greensboro, NC. Please send me any information that is available.
  • Anton rivas said on March 9, 2009
    I have a great tow truck... A self Loader Dynamic 2004F450 Dysel Great Truck... [email protected]
  • Anton rivas said on March 9, 2009
    The Truck is FOR SALE, Please call 310 614-9912 $26,000 Low Mileage
  • Jessica said on March 10, 2009
    I was wondering if anyone knows if there are government grants out there to help you start your new business?? please email me @ [email protected] thankx
  • NZINGA MCGLOTHIN said on March 10, 2009
    I WANT TO START A TOWING BUSINESS, WHERE DO I BEGIN AND HOW MUCH CAPITAL NEEDED IN JACKSON MISSISSIPPI? E-MAIL ME @[email protected]
  • Armando Mendieta said on March 12, 2009
    I want to start a towing business in Florida. I have a truck that i can put the tow tongue under it, but i need to know cost of license here in fl, and what else i might need to do. Thank you AMM
  • NEVERENOUGH1616 said on March 12, 2009
    I AM LOOKING TO START A TOWING BUSISNESS IN GRANBY CT. WHAT IS IT THAT I NEED TO DO FIRST AS FAR AS PERMITS AND LICENSES? THANKS
  • sylvia ross said on March 13, 2009
    we are looking to start a small towing business in baltimore, md. could you inform me what I need to do first as far as the permits and licenses and the insurance information. thanks
  • davonchae said on March 13, 2009
    WHERE DO I GO TO FIND THE LICENSING TO OPERATE AND START UP IN FLORIDA HOW DO I FIND LESSONS TO OPERATE AND INSURANCE HOW DO I ALSO FIND GRANT MONEY
  • Wanna Be Tower said on March 16, 2009
    any good info for IOWA DES MOINES please email me any kind off towing repos, junks, private all on call 24hr service how do i get some info off what i need thanks for helping
  • carlos skinner said on March 19, 2009
    do i need d.o.t. stickers on my tow truck to operate in alabama.
  • Shon said on March 23, 2009
    I plan to start a towing service by Jan 2010. I need as much info as you can give me about a startup in SC. I want to start from home with one truck. Send all info to my email address: [email protected] Any info will be appreciated.
  • brandon said on March 26, 2009
    I am trying to start my own towing company and also want to do repos..I have money I just need to be pointed in the right direction. I live in Southern CA. and I am very interested in doing this ASAP. Thank you
  • Leslie said on March 26, 2009
    I'm looking to start my own TOWING business and want to specialize in Repo/Recovery. I have money. Need guidance in the right direction. I live in the metro Detroit Area. I'm very interested in getting started ASAP. THANK IN ADVANCE FOR YOUR INSIGHT.
  • brent said on March 27, 2009
    I am thinking about starting a towing co. in texas and want to know what i need to do to get going. I would appreciate the advice. I need to know who to talk to and where to go to get it done. thanks for the help [email protected]
  • FAITH said on March 27, 2009
    My husband and I are looking to start a towing service in nc. Can you send us some information on how to get a business license and also how to get capital to make this business venture happen for us. Thank you
  • BigBoy said on March 28, 2009
    I'd like to start a towing biz in NC. Can you send me some information on how to get a business license and I just need to be pointed in the right direction.
  • rachid said on March 29, 2009
    I would like to get all the information I can about getting into the towing business, from point A TO POINT Z. All aspects of it. I am planning to start in denver, colorado. I would appreciate it. Thanks!! E-mail [email protected] or phone 720-242-5175 again thank you
  • Tammi Snodgres said on March 30, 2009
    I want to start my own towing company in central ohio but not sure if this is a good move. Could this be profitable if I hire a driver or would I need to operate the truck myself. Should I start with a flatbed or hook? Any advise would be greatly appreciated.
  • zak said on March 30, 2009
    I want to start my own towing company in atlata ga. so please would you give me some advise how to start. Thank you
  • Sam, said on March 31, 2009
    I'm looking into starting a tow business based out of Seattle WA, but i don't know where to start.
  • Guest said on April 5, 2009
    I would like to start a towing business in Oregon. Where do I start? What is it that I need to start this business?
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