Car insurance may cover some risks when you tow a vehicle on a dolly, but one policy usually does not automatically protect the towing vehicle, the car being towed, and the dolly itself.
The liability insurance on the vehicle pulling the dolly may cover injuries or property damage caused to other people. However, damage to the vehicle being towed may depend on whether that vehicle has active collision or comprehensive coverage.
A rented dolly may require separate protection from the rental company.
Before towing, check:
- The insurance policy on the towing vehicle
- The policy on the vehicle being transported
- The tow dolly rental agreement
- Coverage limits, deductibles, and exclusions
- Whether the trip is personal or business-related
Every policy is different. Confirm your protection with your insurance company before beginning the trip
How Does Insurance Work When Towing a Car on a Dolly?
When using a tow dolly, three separate items are involved:
- The vehicle pulling the dolly
- The vehicle being towed
- The tow dolly
These items may not all be covered under the same auto insurance policy.
For example, the liability insurance on your truck may cover damage the dolly causes to someone else’s car. However, it may not pay to repair the car sitting on the dolly.
To understand your protection, you must look at each item separately.
Does the Towing Vehicle’s Liability Insurance Cover an Accident?
The liability coverage on the vehicle pulling the dolly may cover injuries or property damage you cause to other people.
Suppose you are towing a car behind your pickup truck. The dolly moves into another lane and hits another vehicle. The liability portion of your truck’s policy may help pay for:
- Repairs to the other vehicle
- Damage to another person’s property
- Medical costs for people injured in the accident
- Legal defense costs for a covered claim
Texas drivers must carry at least 30/60/25 liability coverage:
- $30,000 for bodily injury to one person
- $60,000 for bodily injury in one accident
- $25,000 for property damage in one accident
The Texas Department of Insurance auto insurance guide explains these minimum requirements.
Texas minimum limits may not be enough for a serious towing accident. A crash involving several vehicles can quickly create repair and medical costs above your policy limits.
Smart Insurance explains the difference between basic liability and broader protection in its guide to minimum versus full coverage auto insurance in Texas.
What Liability Insurance Usually Does Not Cover
Liability insurance protects other people. It normally does not pay for damage to property you own.
Liability coverage usually does not repair:
- Your towing vehicle
- The vehicle being towed
- A tow dolly you own
- Personal items inside the towed vehicle
Damage to your own property may require collision coverage, comprehensive coverage, a rental damage waiver, or another form of protection.
Drivers who only carry the Texas minimum can learn more from Smart Insurance’s guide to affordable auto liability insurance in Texas.
Is the Vehicle Being Towed Covered by Insurance?
The vehicle on the dolly may have protection through its own insurance policy.
Whether the claim is covered can depend on:
- Whether the vehicle has active insurance
- Whether it has collision or comprehensive coverage
- What caused the damage
- Whether the vehicle was loaded correctly
- Whether the policy excludes certain transportation risks
- Who owns and operates the towing equipment
Do not assume that the towing vehicle’s insurance will pay for damage to the transported vehicle.
Can Collision Coverage Protect the Towed Car?
Collision coverage may apply when the transported vehicle is damaged by an impact or rollover.
Possible examples include:
- The towing vehicle crashes
- The tow dolly overturns
- The transported car hits another vehicle
- The car falls from the dolly and hits the road
- The dolly strikes a fixed object
However, collision coverage is not a guarantee that every towing-related claim will be paid. The insurance company will investigate the accident and review the policy.
It may consider whether:
- The vehicle was properly secured
- The towing setup exceeded weight limits
- The equipment was used as intended
- The vehicle was compatible with the tow dolly
- A mechanical problem caused the loss
- A policy exclusion applies
Can Comprehensive Coverage Protect the Towed Car?
Comprehensive coverage may apply when the transported vehicle is damaged by a covered event that does not involve a normal collision.
Depending on the policy, this may include:
- Theft
- Vandalism
- Fire
- Hail
- Falling objects
- Certain storm-related damage
For example, if hail damages the car while it is secured to the dolly, the comprehensive coverage on that car may respond after the deductible.
Ask the insurance company whether physical damage protection remains active while the vehicle is being transported.
Does Full Coverage Insurance Cover a Car on a Tow Dolly?
Full coverage may protect a car being transported, but the term does not mean that every loss is covered.
“Full coverage” is not a single insurance policy. It commonly describes a combination of:
- Liability insurance
- Collision coverage
- Comprehensive coverage
The policy may still contain deductibles, limits, conditions, and exclusions.
For example:
- Collision may apply if the dolly overturns.
- Comprehensive may apply if the towed car is stolen.
- Liability may pay if your towing setup damages another person’s vehicle.
- None of these coverages may apply if the loss falls under a policy exclusion.
Read the policy or ask a licensed agent to explain exactly how the coverage applies.
Does Car Insurance Cover a Rental Tow Dolly?
Your personal auto policy may not pay for damage to a rented tow dolly.
Rental contracts commonly make the renter financially responsible for damage to the equipment. This responsibility may apply even when another person caused the accident.
Before renting, ask your insurer:
- Does my auto policy cover a rented tow dolly?
- Is damage to the transported car included?
- Is there a deductible?
- Does coverage apply during loading and unloading?
- Are tire, mechanical, or transmission losses excluded?
- Does coverage apply if another person drives the towing vehicle?
How U-Haul Tow Dolly Protection Works
U-Haul offers Safetow for trailers and towing devices such as tow dollies and auto transports. U-Haul states that Safetow may include protection for the rented equipment and the vehicle or property being transported, subject to the rental contract, limits, and exclusions.
U-Haul also says customers who decline optional protection remain financially responsible for damage to the rented equipment. Review the company’s official damage coverage information before accepting or declining protection.
Rental protection is not necessarily the same as liability insurance. Read the agreement carefully to understand what it does and does not cover.
Is Roadside Assistance the Same as Tow Dolly Coverage?
No. Roadside assistance and insurance for a transported vehicle are different services.
Roadside assistance may help when the insured vehicle has a mechanical or roadside problem, such as:
- A dead battery
- A flat tire
- A lockout
- An empty fuel tank
- A breakdown requiring towing
It normally pays for or arranges the roadside service. It does not automatically provide physical damage coverage for the car being transported on a dolly.
There may also be special limits when a vehicle has a dolly or trailer attached. The provider may need a larger tow truck or additional equipment.
Before traveling, ask:
- Can the provider tow the truck with the dolly attached?
- What happens to the transported vehicle?
- Is there a mileage limit?
- Are additional towing charges covered?
- Does the plan cover rented towing equipment?
Review available roadside assistance coverage before beginning a long towing trip.
What Happens if the Towed Vehicle Belongs to Someone Else?
Towing a friend’s, family member’s, or customer’s vehicle can create additional insurance issues.
Your policy may limit coverage for property in your care, custody, or control. This can affect claims involving a vehicle you temporarily possess or transport.
The vehicle owner’s collision coverage may apply, but the insurer could investigate whether another person was responsible for the damage.
Before towing someone else’s car:
- Confirm that the vehicle has active insurance.
- Get permission from the owner.
- Photograph the vehicle before loading it.
- Confirm that the vehicle is compatible with the dolly.
- Ask whether your policy covers damage to the vehicle.
- Keep copies of insurance and ownership information.
- Do not promise that your policy will cover every loss.
Written confirmation from an insurance company is more reliable than assuming coverage based on a general policy description.
Does Personal Car Insurance Cover Business Towing?
A personal auto policy may exclude towing performed for payment or as part of a business.
Examples of business towing include:
- Transporting customer vehicles
- Moving vehicles for a dealership
- Delivering cars for a fee
- Operating a vehicle recovery service
- Regularly transporting work equipment
- Towing as part of an auto repair business
A company may need commercial auto insurance and additional coverage for vehicles in its possession.
Commercial towing risks are different from occasionally moving your own car. Business owners should disclose how vehicles are used, who drives them, what is transported, and whether towing equipment is owned or rented.
Smart Insurance helps Texas businesses compare commercial auto insurance for company vehicles and eligible business driving risks.
An agent may also recommend other business coverage depending on the operation, contracts, and type of property being transported.
Is Towing a Car the Same as Towing a Travel Trailer?
No. A vehicle on a tow dolly and a travel trailer are different types of property, but they can create similar insurance gaps.
The liability insurance on the towing vehicle may cover damage caused to other people while a trailer is attached. However, it may not cover physical damage to the trailer itself.
The Texas Department of Insurance advises owners to ask whether a separate RV policy or endorsement is needed to protect a travel trailer.
Drivers towing campers or RVs can review Smart Insurance’s travel trailer insurance and its guide to travel trailer insurance requirements in Texas.
Common Tow Dolly Accident Scenarios
The Dolly Hits Another Vehicle
The towing vehicle’s property damage liability coverage may pay for repairs to the other vehicle, up to the policy limit.
It generally will not pay for repairs to your own truck, dolly, or transported car.
The Towed Car Falls Off the Dolly
Collision coverage on the transported vehicle may apply. Rental equipment protection may also apply if it was purchased.
The claim may be affected by how the car was loaded, whether the straps were secured, and whether the equipment was suitable for the vehicle.
The Dolly Is Stolen
If the dolly is rented, rental protection may apply depending on its terms. If it is personally owned, coverage will depend on the policies that apply to the equipment.
The transported vehicle may need its own comprehensive coverage if it is also stolen.
Hail Damages the Transported Vehicle
Comprehensive coverage on the transported vehicle may help pay for the damage after the deductible.
Liability insurance would not cover this loss because hail damage was not caused to another person.
The Towing Vehicle Breaks Down
Roadside assistance may arrange towing for the disabled vehicle. However, the provider may have restrictions when a dolly and another vehicle are attached.
Explain the complete setup when requesting roadside help.
What Should You Do Before Towing a Car on a Dolly?
1. Contact Your Insurance Company
Provide details about:
- The towing vehicle
- The vehicle being transported
- The dolly
- The vehicle owners
- The length and purpose of the trip
- Whether the equipment is rented
Ask the company to explain which policy would apply to each type of loss.
2. Review Collision and Comprehensive Coverage
Check the policy for the transported vehicle.
Confirm:
- The deductible
- The vehicle’s current coverage
- Whether transportation-related damage is excluded
- Whether the policy remains active while the vehicle is being towed
3. Read the Rental Agreement
Check who is responsible for:
- Dolly damage
- Theft
- Tire damage
- Improper loading
- Mechanical damage
- Loss of use
- Towing and storage fees
- Damage to the transported vehicle
4. Confirm the Towing Capacity
Check the towing vehicle’s manual and the equipment instructions.
Do not exceed the limits of the:
- Towing vehicle
- Hitch
- Hitch ball
- Tow dolly
- Straps
- Chains
- Tires
5. Make Sure the Car Is Compatible
Some vehicles should not be transported on certain tow dollies.
For example, drivetrain type, ground clearance, vehicle modifications, weight, and transmission design can affect whether dolly towing is safe.
U-Haul warns that certain rear-wheel-drive vehicles may require the driveshaft to be disconnected and that modified or lowered vehicles may not fit safely. Follow the rental company’s official tow dolly instructions.
6. Secure the Vehicle Correctly
Use the required tire straps, safety chains, and connection points.
The National Highway Traffic Safety Administration reminds drivers that cargo and equipment must be properly secured and that trailers should not be overloaded. Review NHTSA’s secure-your-load guidance.
7. Document the Condition
Take clear photos before loading the vehicle.
Photograph:
- Every side of the car
- Existing scratches and dents
- The wheels and tires
- The dolly
- The hitch connection
- The straps and safety chains
- The final loaded setup
These records may help if there is a disagreement about when damage occurred.
Tow Dolly Insurance Mistakes to Avoid
Assuming Full Coverage Covers Everything
Full coverage still has exclusions, limits, and deductibles.
Relying Only on the Towing Vehicle’s Policy
The towing vehicle’s liability coverage may protect other people without protecting the car on the dolly.
Declining Rental Protection Without Checking Your Policy
Your existing policy may provide limited or no coverage for rented towing equipment.
Using Personal Insurance for Paid Towing
Business activity can be excluded from personal auto insurance.
Removing Insurance From the Transported Car
Canceling coverage before a trip may leave the vehicle unprotected from theft, hail, fire, or collision.
Using the Wrong Dolly
An incompatible towing setup can damage the vehicle and may create problems during a claim investigation.
Frequently Asked Questions
Does My Truck Insurance Cover the Car I Am Towing?
The liability coverage on your truck may cover injuries or property damage caused to other people. It may not cover damage to the car being towed.
Does Full Coverage Cover a Car on a Tow Dolly?
It may. Collision or comprehensive coverage on the transported vehicle could apply depending on what caused the damage and what the policy excludes.
Do I Need Separate Insurance for a Tow Dolly in Texas?
A personally owned dolly may not always need a separate policy, but that does not mean it is protected against physical damage. A rental company may also make you responsible for damage under the rental agreement.
Does Insurance Cover a Car That Falls Off a Tow Dolly?
Collision coverage on the transported vehicle may apply. The insurer will review how the vehicle was loaded, how the accident occurred, and whether exclusions apply.
Does Roadside Assistance Cover a Tow Dolly?
Roadside assistance may help with a disabled towing vehicle, but it is not the same as physical damage insurance for the dolly or transported vehicle.
Can I Tow a Car Without Insurance on the Towed Vehicle?
Towing an uninsured car may leave it without protection against collision, theft, fire, hail, and other losses. Confirm the situation with an insurance professional before the trip.
Will SR-22 Insurance Cover a Towed Vehicle?
An SR-22 is proof that a driver carries required liability coverage. It is not a separate physical damage policy and does not automatically cover the car on a dolly.
Drivers with filing requirements can review SR-22 insurance in Texas.
Get the Right Insurance Before Towing
So, does car insurance cover a vehicle towed on a dolly?
It may cover part of the risk, but coverage is often divided among:
- The towing vehicle’s policy
- The transported vehicle’s policy
- Rental equipment protection
- Commercial coverage when towing for business
Never assume one policy protects the complete towing setup.
Smart Insurance helps Texas drivers understand auto insurance coverage, compare liability and full coverage options, and identify possible gaps before a trip.
Drivers looking for lower rates can also review the guide to cheap car insurance in Orange, Texas.
Coverage depends on the insurance company, policy wording, limits, deductibles, vehicle, equipment, and cause of loss. This article provides general educational information and does not replace the terms of an insurance contract.
