How Do Tow Truck Companies Get Paid?

Tow truck companies provide an essential service to those who have broken down on the side of the road, been in an accident, or need their vehicle transported for other reasons. But how do these companies get paid for their services?

Most tow truck companies are paid by insurance companies in the case of roadside assistance or accident-related tows. In this case, the tow truck company will provide a bill to the insurance company which will usually pay it directly. For vehicles that are being towed because they are not in running condition or need to be moved to another location, the customer may be responsible for paying the tow truck company directly.

In some cases, there may be additional fees associated with a tow such as after-hours service or long-distance transport of a vehicle.

These fees may be covered by a customer’s insurance policy or they may be billed directly to the customer. Some tow truck companies also offer payment plans that can help customers spread out their payments over time.

Tow truck companies are also sometimes hired by businesses such as car dealerships and auto repair shops to transport vehicles from one place to another. In these cases, it is usually the business that pays for the service. Additionally, some towing services are provided by law enforcement agencies as part of their efforts to keep roads safe and clear of disabled vehicles.


Tow truck companies typically get paid either by insurance companies in cases of roadside assistance or accidents, or from customers directly when they need their vehicle transported for non-emergency reasons. Businesses like car dealerships and auto repair shops also hire tow trucks to move vehicles from one place to another and pay for this service themselves. In some cases, law enforcement agencies may also provide free towing services.

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Karen Watkins