Roadside Assistance Business Insurance (commercial insurance coverage)

Why Insurance Matters

Insurance is one of the hardest parts of starting roadside — and one of the most important.

You need insurance to:

  • Protect yourself from liability

  • Work with motor clubs like AAA and Agero

  • Get approved for contracts

Without proper insurance, most motor clubs will deny your application.

Required Insurance Types

Depending on the contracts you hold, you’ll usually need:

  1. General Liability Insurance

    • $1,000,000 – $2,000,000

  2. Garage Keepers / On-Hook Coverage

    • $50,000 – $500,000

  3. Commercial Auto Insurance

    • $100,000 – $1,000,000

These cover damage, accidents, and liability while working roadside jobs.

How Insurance Companies Decide Your Price

Underwriters mainly look at three things:

1. Driving Record

  • How long you’ve been driving

  • Tickets or points on your record

Even one speeding ticket can double your monthly premium.

2. Experience

  • Prior driving or roadside experience

  • Work history in similar fields

More experience = lower risk = better rates.

3. Projected Revenue

  • How much you expect to make

Higher projected revenue = higher insurance cost.

Example:

  • $50,000/year → lower premium

  • $200,000/year → higher premium

Be Honest on Applications

Insurance companies will send forms asking for:

  • Driving history

  • Experience

  • Expected income

⚠️ Always tell the truth.
If they audit you later and find false info, they can deny claims or cancel coverage.

Where to Get Insurance

Start with:

  • Your current insurance agent
    Tell them you need commercial coverage for roadside assistance.

Always:

  • Get multiple quotes

  • Compare prices

  • Reapply later if denied

Insurance companies manage risk monthly.
A “no” today could be a “yes” next month.

Companies that offer roadside assistance commercial insurance

These insurance companies offer insurance to roadside assistance companies.

  1. Progressive Commercial Insurance

  2. Allstate Commercial Insurance

Certificate of Insurance (COI) – Explained Simply

A COI (Certificate of Insurance) is proof of coverage.

Motor clubs require this before activating you.

If you show your insurance agent a sample COI and say:

“I need this exact coverage for roadside assistance”

You’ll be approved for most motor club contracts.

⚠️ This coverage example is for roadside only, not towing.

Get started today.