1. How to Succeed in the Towing Business
2. Challenges Facing Towing Operators and Companies
3. How to Secure a Towing Contract

Towing contracts refer to agreements between towing companies and their clients that outline the rights and responsibilities of both parties. These contracts address a wide range of concerns and issues that are related to towing services and ensure that the contracting parties will have a clear understanding of their roles and obligations. By signing a towing contract, a towing company and its client will be able to minimize confusion and conflicts and perform their duties more efficiently.

How to Succeed in the Towing Business

The towing business is never boring. This line of work exposes business owners to a wide range of situations and challenges, from changing tires in heavy traffic, to recovering a capsized vehicle, to dealing with disgruntled customers. If you wish to get into the towing business, there are a few options for you to choose from:

  • Work as an employee of a towing company, which will pay for your time and expertise and sell your services at a higher price.
  • Start your own towing business with one truck and offer your services directly to end-users, bypassing the employer.
  • Start your own towing business, hire employees, and sell their time and expertise to end-users.

In the towing industry, revenue can come from:

  • Vehicle storage
  • Vehicle preservation
  • Vehicle disposal
  • Sale of vehicle parts
  • Letter writing

The expenses of a towing company include:

  • Purchase of tow trucks
  • Fuel
  • Drivers' wages
  • Payment of damages
  • Insurance

Challenges Facing Towing Operators and Companies

In order to become a competent tow truck operator for a towing company, you have to be aware of what is happening around you and prepare for the worst. The need to be constantly prepared for unexpected events can make you somewhat pessimistic and paranoid. However, you should not let that unsettle you, since you have other things to be concerned about.

If you are operating a one-man-one-truck business, you can only take one customer at a time, meaning that you may miss out on some opportunities. If you have enough money to buy a new tow truck, however, you can hire another driver to perform towing duties, expanding your business.

It can be difficult to succeed in the towing business. You cannot purchase a franchise because there is none available, and it can be difficult to find a successful towing company for sale. Also, there is no college program that provides training for running a towing business. The driver certification program of the Towing and Recovery Association of America is the only tow-truck operation certification course that is nationally recognized. The Federal Motor Carrier Safety Administration recommends that two truck drivers complete this course before taking a towing job.

How to Secure a Towing Contract

Depending on your location, the towing business can be competitive. You need to offer more value and be better prepared than your competitors in order to secure a towing contract. The following steps can help increase your chances of getting a towing contract.

  • Make sure you have all the necessary licenses, permits, surety bonds, and other documents for operating a towing business in your area.
  • Get liability insurance from one of the authorized insurance providers in your state.
  • Work with an attorney to draft a contract for establishing agreements with companies that own parking areas or properties with parking lots.
  • Find a sign-maker to create “No Parking” or similar signs for securing contracts with strip malls and building owners.
  • Make copies of all licenses, permits, insurance policies, and bonds.
  • Print business cards to give out to companies and agencies that you plan to contract with.
  • Visit local businesses, law enforcement departments, and government agencies to offer your towing services.
  • Provide the companies or agencies with a booklet or binder that contains all the required licensing, insurance, and other information.
  • Explain the benefits that set your towing business apart from your competitors.
  • Ask companies or agencies if you can contact them to follow up after the initial meetings.
  • Sign a contract with a company or agency. Provide one original copy to the other party and keep one for your records.
  • Set up towing signs at the business or agency's location if you are contracting to provide towing services at a commercial location.

If you need help creating or reviewing towing contracts, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.