Texas tow truck and wrecker owners have seen the most change in their industry in the past year as ever before. Beginning on January 1, 2008, the Texas Department of Licensing and Regulation (TDLR) began regulating the towing industry. With this came a number of changes. I encourage you to click on the links below which I have copied from the Texas Department of Licensing and Regulation website. There are a lot of rules and I encourage you to learn of every requirement. However, know there are a lot and this takes awhile.
I have included two main sections on this page. As your insurance agent, I provide these forms to you and in most cases, will help you fill them out and file them for you. You will still need to file your initial application with TDLR yourself and I encourage you to do it online.
Towing and Vehicles Storage Facility Applications and Instructions
All the information you need to start and operate a tow truck and wrecker operation in Texas can be accessed by clicking the following links. These will take you directly to the Texas Department of Licensing and Regulation website:
Towing and Storage Advisory Board
Towing and Vehicle Storage Facilities Law
Vehicle Storage Administrative Rules
Myths about Texas Towing from TDLR:
The Myth
The Truth
1. A vehicle owner may sign a tow ticket at the scene of an accident to make the tow a “consent tow.”
1. This type of tow is non-consent and may not be changed.
2. A vehicle owner may sign a tow ticket at the scene of an accident to authorize repairs to the vehicle.
2. Authorizing anything but the tow or signing the tow ticket is not allowed.
3. If the vehicle owner wants to take the vehicle to a place other than the VSF, then the vehicle owner has to sign the tow ticket.
3. The owner and the tow operator only need to agree that the vehicle should be towed to someplace other than the VSF. The owner may not sign the tow ticket.
4. Tow tickets must have the Department complaint and contact information.
4. This isn’t required but may be included on the tow ticket, unless your tow ticket is combined with the VSF invoice provided at the time of release from the VSF.
5. A tow ticket is not required to be given at the scene of a traffic incident for a heavy duty tow.
5. If the non-consent tow occurs a tow ticket must be provided if the owner is available.
6. A tow ticket is not required if the vehicle is “dropped” i.e. the vehicle is removed from the tow truck and returned to the owner before it is actually towed.
6. If a fee has been charged then a tow ticket must be provided.
7. Private property tows do not require a tow ticket.
7. Private property tows are non-consent tows must be given a tow ticket.
SOURCE: TDLR
TEXAS INSURANCE REQUIREMENTS
(per Texas Dept of Licensing and Regulation) 86.400. Insurance Requirements--Tow Truck Permits. (New section adopted effective April 15, 2008, 33 TexReg 2940)
(a) An applicant for a tow truck permit is responsible for ensuring the electronic submission of a certificate of insurance when applying for an initial license or permit, submitting a license or permit renewal, changing a business name or affiliation, and upon request of the department.
(b) The certificate of insurance must be obtained from and submitted by an insurance company licensed and authorized to do business in Texas pursuant to the Texas Insurance Code.
(c) The name and address of the applicant, licensee, or permit holder shown on the certificate of insurance form must be the same as the name and address on the application or permit. The applicant or permit holder is responsible for ensuring that the insurance information on file with the department reflects the correct name and address of the insured.
(d) Coverage.
(1) Tow truck permit applicants and permit holders must obtain insurance for each permitted tow truck that meets the following requirements:
(A) Incident Management Towing
(i) a minimum of $500,000 liability insurance per tow truck per incident, which is combined single limit liability for bodily injury to or death of an individual per occurrence, loss or damage (excluding cargo) per occurrence, or both; and
(ii) a minimum of $50,000 of cargo or cargo on hook insurance per tow truck per incident.
(B) Private Property Towing
(i) a minimum of $300,000 of liability insurance per tow truck per incident, which is combined single limit liability for bodily injury to or death of an individual per occurrence, loss or damage (excluding cargo) per occurrence, or both; and
(ii) a minimum of $50,000 of cargo or cargo on hook insurance per tow truck per incident.
(C) Consent Towing. A minimum of $300,000 of liability insurance per tow truck per incident, which is combined single limit liability for bodily injury to or death of an individual per occurrence, loss or damage (excluding cargo or cargo on hook) per occurrence, or both.
(2) Insurance covering permitted tow trucks must be kept in full force and effect at all times.
(3) The certificate of insurance must contain a provision obligating the insurer give the department thirty days notice before the effective date of a policy cancellation date.
(e) Replacement insurance filing.
(1) The department will consider a new insurance filing as the current record of financial responsibility required by this section if:
(A) the new insurance filing is received by the department; and
(B) a cancellation notice has not been received for previous insurance filings.
(2) The department may revoke a license if the insurance has been canceled and a replacement policy has not been filed prior to the cancellation date.
(f) Insolvency of insurance carrier. If an insurer for a tow truck permit holder becomes insolvent, is placed in receivership, or has its certificate of authority suspended or revoked and if the tow truck permit holder no longer has insurance coverage as required by these rules, the tow truck permit holder shall file with the department, not later than the 10th day after the date the coverage lapses:
(1) evidence of insurance as required by these rules; and
(2) an affidavit that:
(A) indicates that an accident from which the tow truck permit holder may incur liability did not occur while the coverage was not in effect; or
(B) contains a plan acceptable to the department indicating how the tow truck permit holder will satisfy claims of liability against the tow truck permit holder for an accident that occurred while the coverage was not in effect.
(g) Notices. The department will notify the Texas Department of Public Safety and other law enforcement agencies of each tow truck permit that has been revoked for failure to maintain the required insurance coverage.
Towing and Vehicles Storage Facility Applications and Instructions
If you haven't already registered with the Texas Department of Licensing and Regulation, you can download, print and fill out the required applications from this section but I recommend you do it online to save time. Please find a form below or return to HOME PAGE.
Towing Application
Instructions
Tow Truck Company Update Form
Instructions
Tow Truck Company 7-90 Day Application
Instructions
Additional Tow Truck Report
Affidavit of Right of Possession
Proof of Loss Form for Insurance Company Use
Notice of Right Of Possession For Salvage
Drug Testing Procedures
Specific Power of Attorney
Lein Holder Power of Attorney
Vehicle Storage Facility Application
Instructions
Vehicle Storage Facility Update Form
Vehicle Release Form - updated 09/31/2010
Criminal History Questionaire
Complaint Form
VSF Violation Report Form
