Texas Garage Liability Insurance
For Auto Dealers, Repair Shops & Towing Companies
Texas has one of the largest automotive markets in the United States, with thousands of licensed dealers, independent repair shops, and towing companies operating across the state. The Texas Department of Motor Vehicles (TxDMV) and the Texas Department of Licensing and Regulation (TDLR) impose specific insurance requirements on automotive businesses. Garage liability insurance — not standard general liability — is the required and appropriate coverage for Texas dealers, garages, and tow operators.
Complete Texas Automotive Insurance
We build complete insurance programs for Texas automotive businesses — not just a single policy. Every coverage your dealership, repair shop, or towing company needs, from one independent agency that shops 15+ carriers.
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Fast quotes from 15+ top-rated carriers. agents focused on Texas garage liability.
Start My Quote →📞 813-582-5215Ellie Insurance Group is licensed in Texas and focuses on garage liability insurance for Texas automotive businesses. We work with 15+ A-rated carriers to find the right coverage at the best rate for your Texas operation.
Texas Tow Truck Insurance Requirements
Texas law requires on-hook (in-tow) coverage for incident management towing and private property towing. Private towing without incident management does not require on-hook coverage. Staying current with TDLR requirements is critical — non-compliance can result in business interruption, fines, and permit revocation. Texas tow operators should also consider Uninsured/Underinsured Motorist Coverage, Physical Damage Coverage, and Customer Contents Coverage.
| Vehicle Type | Minimum Liability | On-Hook / Cargo Min. |
|---|---|---|
| Light Duty (under 10,000 lbs GVW) | $300,000 combined single limit per occurrence | $50,000 cargo/on-hook per tow truck per incident |
| Medium Duty (10,001–26,000 lbs GVW) | $500,000 combined single limit per occurrence | $50,000 cargo/on-hook per tow truck per incident |
| Heavy Duty (over 26,000 lbs GVW) | $1,000,000 combined single limit per occurrence | $50,000 cargo/on-hook per tow truck per incident |
* State minimums are the legal floor — not the recommended coverage level. Work with a licensed agent to determine appropriate limits for your operation.
Texas Automotive Businesses We Insure
Texas Garage Liability FAQ
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