Recovery truck insurance in Quebec costs between $5,000 and $15,000 annually per vehicle in this year. Operators running 24-hour downtown services typically pay at the higher end of this range, often between $12,000 and $15,000 per truck. New businesses with less than 3 years of operating history can expect premiums 20% to 50% higher than those of established operators.
**Please note actual premium depends on various factors, which we will discuss in this blog.
Recovery truck insurance is more complex than standard commercial transportation insurance because it must cover both your truck and the customer vehicles you tow, lift, and store.
This guide explains what recovery truck insurance covers, how Quebec’s regulatory system affects your costs, and what strategies can help reduce your premiums.
As an AMF-certified insurance broker in Montreal, Qubit Insurance works with recovery truck operators to navigate these requirements and secure appropriate coverage.
What is a Recovery Truck?
A recovery truck is a specialized commercial vehicle designed to rescue, lift, and transport disabled or damaged vehicles. Unlike standard tow trucks, which primarily move vehicles from one location to another on paved roads, recovery trucks use advanced equipment to perform complex extractions from ditches, embankments, accident scenes, and off-road locations.
Recovery vs. Towing: The Legal Distinction
Quebec's Ministry of Transport defines these terms specifically for insurance and service fee purposes:
Towing: Coupling a vehicle to a tow truck and transporting it to a location specified by the customer or police. Towing begins when the tow truck arrives at the service location and does not include positioning manoeuvres.
Recovery: All manoeuvres required to get a vehicle into the proper position for towing. Recovery includes retrieving vehicles from ditches, uprighting overturned vehicles, winching from off-road locations, and managing large cargo debris. Recovery operations require specialized equipment and carry higher insurance requirements.
Types of Recovery Trucks
1. Flatbed (Rollback)
Features a hydraulically tilting bed that slides to ground level. Vehicles are winched onto the platform or driven on under their own power. Flatbeds provide the safest transport for all-wheel-drive vehicles, luxury cars, and vehicles with low ground clearance. Typical lifting capacity ranges from 5 to 12 tonnes.
2. Wheel-Lift
Uses a hydraulic metal yoke that cradles the front or rear wheels, lifting one end of the vehicle while the other end rolls on its own wheels. Wheel-lift trucks are faster to deploy than flatbeds and work well for short-distance towing. Common for repossession and parking enforcement.
3. Integrated Wrecker
Combines a boom with an underlift system on a heavy-duty chassis. These trucks can tow large commercial vehicles, buses, and transport trucks. Lifting capacity typically ranges from 15 to 25 tonnes. Most integrated wreckers operate on Class 7 or Class 8 truck chassis.
4. Heavy-Duty Rotator
The most powerful recovery vehicle, featuring a 360-degree rotating crane boom. Rotators can upright overturned semi-trucks, lift vehicles from embankments without direct access, and perform complex multi-vehicle recoveries. Lifting capacity ranges from 25 to 75 tonnes. These trucks represent the highest equipment investment ($200,000 to $500,000+) and carry the highest insurance premiums.
How Recovery Trucks are Classified for Insurance
Heavy Vehicle Classification: In Quebec, all tow trucks are classified as heavy vehicles regardless of their actual weight, and owners and operators must register them with the Commission des transports du Québec (CTQ) before putting them into service. Heavy vehicles in Quebec must carry at least $1,000,000 in civil liability insurance as a minimum for commercial operations rather than the standard $50,000 minimum for light passenger vehicles under basic auto insurance requirements.
For-Hire vs. Private Carrier: Insurance policies distinguish between trucks used for for-hire recovery (towing third-party vehicles for payment) and private carriers (towing only vehicles owned by your business, such as a garage towing customers' cars to your own shop). For-hire operations carry significantly higher premiums due to increased exposure.
How Quebec's Two-Tier Insurance System Works for Recovery Trucks
Quebec operates a unique public-private hybrid auto insurance system. Understanding this structure is essential for recovery truck operators because your coverage requirements and costs differ significantly from other provinces.
SAAQ Public Coverage (Bodily Injury Protection)
The Société de l’assurance automobile du Québec (SAAQ) is Quebec’s public automobile insurance corporation. It provides mandatory no-fault bodily injury coverage for all Quebec motorists. If anyone is injured in an accident involving your recovery truck, whether your driver, an employee, a bystander, or another motorist, the SAAQ covers medical expenses, rehabilitation, income replacement, and death benefits, regardless of who caused the accident.
Recovery truck operators pay for SAAQ coverage through annual vehicle registration fees and driver’s licence renewals. The insurance contribution portion of these fees funds the SAAQ compensation plan. Heavy vehicles such as recovery trucks are subject to higher registration fees based on weight class and number of axles. This mandatory coverage cannot be replaced by private insurance.
Important Limitation: While the SAAQ plan covers bodily injury for accidents that occur anywhere, it does not cover property damage or liability outside Quebec, so private insurance must respond to bodily injury and liability claims in other provinces and the United States.
Private Insurance Coverage (Civil Liability and Physical Damage)
Civil liability insurance, also known as third-party liability or Section A, covers damage your recovery truck causes to other people’s property. If your truck damages another vehicle, a building, road infrastructure, or any other property during operations, this coverage pays for repairs or replacement.
In Quebec, all heavy vehicles, including tow and recovery trucks, must carry a minimum of $1,000,000 in civil liability coverage. In practice, most Montreal recovery operators carry $2,000,000 to $5,000,000 to meet commercial contract requirements. CAA contracts, police rotation lists, and municipal towing agreements typically require $2,000,000 or higher.
Physical damage coverage, also known as Section B, protects your own recovery truck. It includes collision coverage for damage caused by impacts with vehicles or objects and comprehensive coverage for risks such as theft, fire, vandalism, and weather-related damage. Given that recovery trucks often cost $100,000 to $500,000 or more, physical damage coverage is essential for protecting your equipment investment.
Essential Insurance Coverage Types for Recovery Truck Operators
Recovery truck insurance requires multiple coverage types to protect against the unique risks of towing and recovery operations. Understanding each coverage type helps you avoid gaps that could result in denied claims.
1. On-Hook Towing Insurance
What It Covers: On-hook insurance (also called in-tow coverage) protects customer vehicles while they are being towed, winched, lifted, or otherwise transported by your recovery truck. If a customer's vehicle is damaged during towing operations, collision, fire, theft, or vandalism while hooked to your truck, this coverage pays for repairs or replacement.
Why Recovery Operators Need It: Without on-hook coverage, you are personally liable for any damage to customer vehicles during transport. A single incident, such as the towed vehicle rolling off a flatbed or being damaged in a collision, could result in claims of $50,000 or more for luxury or specialty vehicles.
Typical Limits and Costs: Standard on-hook coverage limits range from $50,000 to $150,000 per vehicle. For a $100,000 limit, expect to pay between $1,500 and $2,300 annually. Operators who regularly tow high-value vehicles (luxury cars, classic cars, commercial trucks) should consider higher limits.
2. Garage Keepers Legal Liability Insurance
What It Covers: Garage keepers insurance protects customer vehicles while they are stored at your premises. This includes your impound lot, storage yard, repair facility, or any location where you hold customer vehicles overnight or longer. Coverage applies to damage from theft, fire, vandalism, collision, and weather events while vehicles are in your care, custody, and control.
Why Recovery Operators Need It: If you store recovered vehicles at your facility, even temporarily overnight, you need garage keepers coverage. A fire at your yard, theft from your lot, or vandalism while a vehicle awaits pickup could leave you liable for significant damages without this coverage.
Coverage Options: Garage keepers insurance is available in three forms. Legal Liability covers damage only when you are proven legally liable. Direct Excess covers damage regardless of fault after the customer's insurance pays. Direct Primary provides the broadest coverage, paying first regardless of fault or the customer's insurance status. Direct Primary costs more but provides the best protection.
3. Commercial General Liability Insurance
What It Covers: Commercial general liability (CGL) protects your business from third-party claims for bodily injury and property damage that occur during business operations but are not related to vehicle operation. This includes slip-and-fall injuries at your premises, damage caused by employees while working, and claims arising from completed operations.
Why Recovery Operators Need It: If a customer slips on ice in your parking lot, if your employee damages a customer's property while securing a vehicle, or if a third party is injured by equipment at a recovery scene, CGL coverage responds. This is separate from your auto liability coverage.
4. Physical Damage Coverage for Your Recovery Truck
What It Covers: Physical damage coverage protects your own recovery truck against collision damage, theft, fire, vandalism, weather events, and other perils. Given the high value of recovery trucks ($100,000 to $500,000+), this coverage is essential for protecting your equipment investment.
Cost Calculation: Physical damage premiums typically run 3% to 5% of your truck's value annually. For a $150,000 integrated wrecker, expect to pay $4,500 to $7,500 per year for physical damage coverage alone. For a $350,000 rotator, physical damage coverage could exceed $15,000 annually.
If your recovery operation is part of a broader transportation business, you may also need additional coverages beyond towing. Learn more about the essential insurance policies for transportation businesses in Quebec.
Recovery Truck Insurance Cost Breakdown for Quebec
The following estimates reflect typical annual insurance premiums for recovery truck operators in Quebec. These figures include civil liability and physical damage coverage. Additional coverages such as on-hook towing insurance and garage keepers liability increase total premiums.
Estimated Annual Premiums by Operation Type
- Local garage operations limited to towing vehicles to the operator’s own repair shop typically range from $5,000 to $6,000 per truck.
- Standard regional recovery operations operating across Quebec generally fall between $5,000 and $9,000 per truck.
- 24-hour recovery services operating in downtown Montreal usually cost $12,000 to $15,000 per truck due to higher traffic density and exposure.
- Cross-border operations serving Ontario or the United States typically range from $15,000 to $30,000 or more, driven by increased liability requirements.
- New recovery operators in their first three years of operation should expect a premium surcharge of 20% to 50%.
Estimated Annual Premiums by Truck Type
- Light-duty flatbeds and wheel-lift trucks under 10 tonnes typically range from $5,000 to $8,000.
- Medium-duty flatbeds in the 10 to 15 tonne range generally cost $7,000 to $11,000.
- Integrated wreckers with lifting capacities between 15 and 25 tonnes typically fall between $9,000 and $14,000.
- Heavy-duty wreckers over 25 tonnes usually range from $12,000 to $18,000.
- Rotators with lifting capacities between 25 and 75 tonnes often range from $15,000 to $25,000 or more, reflecting higher equipment values and risk exposure.
Typical Additional Coverage Costs
- On-hook towing insurance with a $100,000 limit generally costs $1,500 to $2,300 annually.
- Garage keepers liability with a $250,000 limit typically ranges from $1,200 to $2,500 annually.
- Commercial general liability insurance with a $2 million limit usually falls between $1,500 and $3,000 annually.
- Physical damage coverage generally costs 3% to 5% of the truck’s insured value per year.
- Quebec provincial insurance tax adds 9% of the total private insurance premium.
Disclaimer: Estimates are based on current-year market data for the Quebec recovery industry. Final premiums are subject to AMF-regulated insurer underwriting, provincial tax, and individual risk assessment. Prices are subject to change without notice and may vary based on your specific CTQ/RPEVL registration status.
CTQ Registration and PEVL Record Requirements
Before you can operate a recovery truck in Quebec, you must comply with provincial heavy vehicle regulations. These requirements directly affect your insurance eligibility and premiums.
Commission des transports du Québec (CTQ) Registration
The Commission des transports du Québec (CTQ) is the provincial body that regulates heavy vehicle operators in Quebec. All tow truck businesses must register in the CTQ register of owners and operators of heavy vehicles before putting any recovery truck into operation.
If a business purchases a tow truck and is not registered with the CTQ, the vehicle may be registered with the SAAQ, but it cannot legally be put into operation. The truck must remain parked until CTQ registration is complete.
CTQ registration has direct insurance implications. Insurers verify CTQ registration before issuing commercial towing and recovery insurance policies. Operating without proper registration can void insurance coverage and result in claim denials.
PEVL (Heavy Vehicle Driving Record)
PEVL stands for Propriétaires et exploitants de véhicules lourds (heavy vehicle owners and operators). The Société de l’assurance automobile du Québec (SAAQ) maintains a conduct record for every heavy vehicle owner and operator registered with the Commission des transports du Québec (CTQ). This record tracks safety violations, vehicle defects, hours-of-service violations, and other regulatory infractions.
Insurers use the PEVL record as a primary factor when determining eligibility and pricing for recovery truck insurance. A poor PEVL record with accumulated points can increase premiums by 20% to 40% or make coverage unavailable from standard insurers, while operators with clean records generally qualify for preferred rates.
Traffic and regulatory violations committed while operating a heavy vehicle can result in demerit points on the driver’s licence and points on the PEVL record. Some infractions may generate PEVL points even when no personal demerit points are applied.
Mechanical Inspection Requirements
Annual Inspection: All tow trucks in Quebec must pass a mechanical inspection performed by a certified business within the past 12 months. You must present a valid mechanical inspection certificate when registering or renewing registration for your recovery truck.
Insurance Implication: A lapsed mechanical inspection can affect insurance coverage. If your truck is involved in an accident while operating with an expired inspection certificate, insurers may investigate whether the mechanical condition contributed to the incident.
Montreal-Specific Factors Affecting Recovery Truck Insurance Costs
Montreal recovery truck operators face unique cost factors that do not apply to operators in rural Quebec or other regions.
1. 24-Hour Operation Requirements
Many Montreal towing contracts, including police rotation lists and CAA partnerships, require 24-hour availability. Operating around the clock increases your exposure to accidents, theft, and claims. Insurers charge higher premiums for 24/7 operations because your trucks are on the road during high-risk overnight hours when fatigue-related accidents are more common.
2. Traffic Density and Accident Frequency
Montreal's major highways (15, 20, 40, 720) experience heavy traffic volumes and frequent accidents. Recovery trucks operating on these corridors face higher collision risk than operators in lower-traffic areas. Working accident scenes on busy highways increases exposure to secondary collisions. Insurers factor this frequency of loss into baseline premiums for Montreal operators.
3. Montreal Metropolitan Community (CMM) Tax
Businesses operating recovery trucks within the 82 municipalities of the Greater Montreal area pay an additional $59 annual vehicle registration tax per truck. While this is not an insurance cost, it adds to your total annual operating expenses and is collected by the SAAQ during vehicle registration renewal.
4. Quebec Provincial Insurance Tax
Quebec applies a 9% non-refundable tax on all private insurance premiums in 2026. This rate increases to 9.975% effective January 1, 2027. For a recovery truck policy with $10,000 in annual premiums, you pay an additional $900 in provincial tax. When comparing quotes, confirm whether the quoted price includes this tax.
5. Operating Radius Impact
Local Operations (within 160 km of Montreal): Operators who stay within the Greater Montreal area and immediate surroundings pay lower premiums. Local operations minimize exposure time and keep the truck closer to your base of operations.
Regional Operations (Quebec-wide): Expanding operations throughout Quebec increases exposure and premiums moderately. Longer towing distances mean more time on the road and higher collision risk.
Cross-Border Operations (Ontario, Maritimes, United States): Operating outside Quebec significantly increases insurance costs. You need higher liability limits because SAAQ bodily injury coverage does not apply outside the province. Cross-border operations can double your annual premium compared to local-only operations.
Proven Strategies to Reduce Recovery Truck Insurance Costs
Recovery truck insurance is expensive, but several strategies can help reduce premiums without sacrificing essential coverage.
1. Maintain a Clean PEVL Record
Your heavy vehicle driving record has the largest impact on insurance rates. Train all drivers on compliance with hours-of-service regulations, pre-trip inspections, and traffic laws. A single serious violation can increase premiums by 20% or more for several years.
2. Invest in Driver Training Programs
Comprehensive driver training reduces accident frequency and demonstrates commitment to safety. Some insurers offer discounts of 5% to 15% for operators with documented training programs. Training should cover defensive driving, proper recovery techniques, and customer vehicle handling.
3. Implement Security Measures
Install GPS tracking systems and dash cameras on all recovery trucks. Store trucks in fenced, monitored yards with adequate lighting and surveillance. These measures reduce theft risk and help defend against fraudulent claims. Insurers often offer discounts of 5% to 10% for verified security systems.
4. Consider Fleet Insurance for Multiple Trucks
If you operate three or more recovery trucks, fleet insurance typically provides better rates than insuring each truck individually. Fleet policies also simplify administration with a single renewal date and consolidated billing.
5. Increase Deductibles Strategically
Raising your collision and comprehensive deductibles from $1,000 to $2,500 or $5,000 reduces annual premiums significantly. This strategy works well for established operators with cash reserves to cover the higher out-of-pocket cost if a claim occurs. Avoid filing small claims that could affect your loss ratio and future premiums.
6. Limit Your Operating Radius
If your business can operate profitably within the Greater Montreal area, avoid cross-border operations that significantly increase premiums. Each expansion of operating territory adds to your insurance costs.
Common Recovery Truck Insurance Scenarios
1. Starting a New Towing Business
New recovery operators face higher insurance costs due to lack of operating history. Expect to pay 20% to 50% more than established operators for the first three years. Before purchasing a truck, contact a broker to understand insurance costs and ensure your business plan accounts for realistic premiums. Complete CTQ registration before attempting to obtain insurance.
2. Expanding Your Fleet
When adding trucks to an existing operation, contact your broker before finalizing the purchase. Adding a heavy-duty rotator to a fleet of flatbeds changes your risk profile significantly. Your broker can provide accurate premium estimates and ensure the new truck is covered from the moment you take delivery.
3. Adding Cross-Border Operations
If you plan to operate in Ontario, the Maritimes, or the United States, inform your broker before accepting any cross-border work. Your policy must be endorsed for out-of-province operations, and liability limits must increase to cover bodily injury claims in jurisdictions where SAAQ coverage does not apply. Operating outside your policy territory can void coverage.
4. Obtaining Coverage as a High-Risk Operator
If you have a poor PEVL record, previous claims, or have been declined by other insurers, specialized markets exist for high-risk towing operators. These policies cost more, but they provide necessary coverage while you work to improve your record. We can help identify insurers willing to write coverage for challenging risk profiles.
Information Required for a Recovery Truck Insurance Quote
Gather the following information before requesting a quote to ensure accurate pricing.
1. Business Information
Business legal name and NEQ number, CTQ registration number, years in operation, and complete address of your primary location. If you have multiple yard locations, provide all addresses.
2. Vehicle Information
For each recovery truck: Vehicle Identification Number (VIN), year, make, model, body type (flatbed, wheel-lift, integrated wrecker, rotator), GVWR, and current value. If the truck is financed or leased, provide the lienholder information.
3. Operations Information
Types of towing performed (light-duty, medium-duty, heavy-duty, recovery), operating hours (daytime only, 24-hour), operating radius (local, regional, cross-border), contracts held (CAA, police rotation, municipal), and whether you store vehicles at your premises.
4. Driver Information
Driver's licence numbers for all operators, years of experience operating heavy vehicles, and any accidents or traffic violations in the past five years. If you have employees, provide the number of drivers and their general experience levels.
5. Claims History
Details of any insurance claims in the past five years, including date, type of claim, amount paid, and whether the claim is open or closed. Loss experience significantly affects premium pricing.
Why Choose Qubit Insurance for Recovery Truck Coverage
Qubit Insurance is an AMF-certified damage insurance brokerage based in Montreal. Our representatives hold valid certificates issued by the Autorité des marchés financiers (AMF), Quebec’s financial services regulator. We complete mandatory training, pass qualification examinations, and comply with the Act respecting the distribution of financial products and services, allowing us to advise recovery truck operators within Quebec’s regulatory framework.
We specialize in commercial heavy vehicle and recovery truck insurance. We understand CTQ regulations, PEVL records, and the specific coverage requirements of towing and recovery operations, including on-hook towing insurance, garage keepers liability, and required endorsements.
As an independent brokerage, we work with multiple insurers that focus on commercial trucking and towing, which allows us to place coverage for established operators, new businesses, and operators with more complex risk profiles.
We also understand the Quebec towing market, including CAA contract requirements, police rotation list criteria, and municipal towing agreement specifications. We review your operation, fleet composition, and coverage needs, then compare options across our insurer network to help you secure coverage that meets contract requirements while balancing protection and cost.
To request a no-obligation recovery truck insurance quote, contact Qubit Insurance at 514-659-3151 and speak directly with our commercial truck insurance specialists.
