Tow Truck License in Texas: Classes, Fees, and Insurance

To operate a tow truck in Texas, you need a tow truck license in Texas issued by the Texas Department of Licensing and Regulation (TDLR). The individual operator license comes in three classes and costs $100 to apply for. If you also own or run the towing business, you need a separate company license ($350) and a vehicle permit for each truck ($75). Picking the right license class is the first real decision, because it determines what kind of towing you can legally perform, how much insurance each truck must carry, and whether you need pre-application training.¹

The Three Operator License Classes

Texas law creates three tow operator license classes, and each one defines the type of work you can legally perform.²

Incident Management (IM) is the broadest. An IM license covers accident scenes, law enforcement calls, private property removals, and consent tows. If you hold IM, you can work under any permit type.
Private Property (PP) covers removing unauthorized vehicles from parking lots, apartment complexes, and similar private property. PP operators can also perform consent tows but cannot work under an Incident Management permit.
Consent Tow (CT) is the most limited. It only covers tows requested by the vehicle owner or an authorized person. CT operators cannot perform non-consensual private property tows or incident management work.

The classes stack downward. An IM operator can do what a PP or CT operator does, but a CT operator cannot move up without obtaining a higher class.¹ Responding to a call your license doesn’t cover exposes you to penalties, so pick the class that matches the work you actually plan to do.

Who Qualifies and What Certification You Need

Every applicant, regardless of class, must hold a valid driver’s license issued by a U.S. state.³ TDLR runs a criminal background check on everyone. If you have any conviction history beyond a minor traffic violation, you must submit a Criminal History Questionnaire with your application. A conviction is not an automatic disqualifier, but the review adds time. TDLR says criminal history evaluations run one to six weeks.¹

IM and PP applicants have an extra step. Before you apply, you must earn certification from a TDLR-approved training program. Approved certifiers include the Towing and Recovery Association of America’s National Driver Certification Program, AAA Texas, and the Texas Towing and Storage Association, among others.¹ The statute itself requires certification by a TDLR-approved program for both classes.³ Consent Tow applicants skip this step.⁴

How to Apply and What It Costs

You can apply through TDLR’s online licensing portal or by mailing a paper application. The non-refundable fee is $100 for all three classes.¹ Online applicants pay by credit card. Paper applicants can use a check or money order.

Before you start, gather:

A valid U.S. driver’s license (a copy for paper applications, the license number for online).
Proof of completion from a TDLR-approved certification program, if you’re applying for IM or PP.
A completed Criminal History Questionnaire, if you have any conviction history beyond minor traffic offenses.

If your record is clean, turnaround is relatively quick. If TDLR has to review past convictions, processing can stretch to six weeks. Missing information will stall things further, so double-check every field before you submit.

Company License and Truck Permits

An operator license only covers the driver. If you own or manage the business, two more layers apply.

Tow Company License

A new tow company license costs $350. The company must designate its controlling persons (owners, partners, officers, general managers), and each of them goes through a criminal background check.⁵ Before TDLR issues the license, the company must adopt a drug and alcohol testing policy. You can use TDLR’s model policy, join an approved consortium, or submit your own policy for approval.⁶

Tow Truck Vehicle Permits

Each truck in the fleet needs its own permit at $75, both for new applications and annual renewals.⁷ The permit type (IM, PP, or CT) determines the minimum insurance that truck must carry.

Insurance Minimums by Permit Type

Texas sets minimum insurance by permit class, per truck per incident:⁵

Incident Management: $500,000 liability and $50,000 cargo or on-hook.
Private Property: $300,000 liability and $50,000 cargo or on-hook.
Consent Tow: $300,000 liability. Cargo or on-hook is not required.

The insurer must be licensed to do business in Texas. Every certificate of insurance must include a clause requiring the insurer to notify TDLR at least 30 days before canceling.⁷ If coverage lapses, the truck’s permit becomes invalid.

Drug Testing

Drug testing happens at the company level, not through the individual operator application. Every towing company must require a pre-employment drug test for each operator, annual testing, and random testing of at least 25% of operators each year.⁶ Tests screen for marijuana, cocaine, amphetamines, PCP, opiates, and alcohol.

A failed pre-employment test means the company must deny employment. If you’re a sole operator running your own company, you still need the pre-employment screen and annual testing, but random testing doesn’t apply when you’re the only employee. Employees convicted of violating a criminal drug statute must inform their employer within five days or face termination.

Required Truck Markings

Each permitted tow truck must display the permit holder’s name, a publicly listed telephone number, the city and state of the business, and the TDLR permit number for that truck.⁸ Text must be at least two inches tall, in a color that contrasts with the truck body, and permanently affixed on both sides. Removable magnetic signs don’t meet the standard.

Renewal and Continuing Education

Operator licenses renew annually. Each cycle, you must complete four hours of continuing education through a TDLR-approved provider before renewal will process.⁹ Coursework covers Texas towing and storage laws, roadway safety, hookup procedures, and consumer protection rules.

The renewal fee is $100, matching the original application.¹⁰ If your license expires before you renew, you lose your authority to tow and must stop working until it’s processed. Submit early so TDLR has time to flag any problems. Truck permits also renew annually at $75 each.

Penalties for Operating Without a License

Running a towing company without a TDLR license, or employing a driver who lacks the required operator license, is a Class B misdemeanor.² A Class B misdemeanor in Texas carries up to 180 days in jail and a fine of up to $2,000.

Other violations of Chapter 2308 draw fines of $500 to $1,500 for a first offense and $1,000 to $2,500 for repeat offenders. TDLR can also pursue civil penalties of $500 to $1,000 per violation per day, and the executive director can issue cease-and-desist orders. These tools stack. A single unlicensed tow could trigger criminal charges, civil fines, and an injunction at once.

Federal Rules That May Also Apply

Your TDLR license covers state requirements. Depending on truck weight and where you operate, federal rules add more.

USDOT Number

Texas requires intrastate commercial motor vehicle operators to obtain a USDOT number, even if you never cross state lines.¹¹ Federally, any vehicle with a gross vehicle weight rating or gross combination weight rating of 10,001 pounds or more operating in interstate commerce also needs one. Most tow trucks clear that threshold, so plan on registering.

Commercial Driver’s License

If your truck’s gross vehicle weight rating exceeds 26,000 pounds, you need at least a Class B CDL. If you’re towing a vehicle that puts combined weight above 26,001 pounds and the towed load itself exceeds 10,000 pounds, you need a Class A CDL.¹² Heavy-duty wreckers used on semi-trucks or large vehicles almost always hit these thresholds.

Medical Examiner’s Certificate

Commercial drivers operating vehicles over 10,001 pounds in interstate commerce must maintain a valid Medical Examiner’s Certificate and keep their state licensing agency updated on the expiration date.¹² Failing to update this can result in a downgrade of your commercial driving privileges. A periodic DOT physical comes with the territory for flatbed and heavy wrecker operators.

1
Texas Department of Licensing and Regulation. Apply for a New Texas Tow Operator License
2
State of Texas. Texas Occupations Code Chapter 2308 – Vehicle Towing and Booting
3
State of Texas. Texas Occupations Code 2308.153 – Incident Management Towing Operators License
4
State of Texas. Texas Occupations Code 2308.155 – Consent Towing Operators License
5
Texas Department of Licensing and Regulation. Apply for a New Texas Tow Company License
6
Texas Department of Licensing and Regulation. Drug Testing Policy Requirement for Tow and VSF Companies
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Texas Department of Licensing and Regulation. Apply for a New Tow Truck Permit in Texas
8
Legal Information Institute. Texas Administrative Code 16-86.701 – Tow Truck Signage
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Texas Department of Licensing and Regulation. Tow Trucks and Vehicle Storage Facilities – Renew Tow Operator
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Texas Department of Licensing and Regulation. Towing at a Glance
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Federal Motor Carrier Safety Administration. Do I Need a USDOT Number?
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Federal Motor Carrier Safety Administration. Medical