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Mar 7 2018

How to Become an AAA Towing Contractor: 10 Steps (with Pictures)

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How to Become an AAA Towing Contractor

The American Auto Association (AAA) provides recovery, repair and other services to members on a statewide and national level. The AAA offers motor clubs who become towing contractors for the AAA instant credibility and a larger client base. As the owner of a towing company, becoming part of the AAA will bump up your business profile and connect you to industry leading companies.

Steps Edit

Part One of Two:
Meeting the AAA Towing Contractor Requirements Edit

Ensure your towing company has a state regulatory license to operate. Most states require all towing business to have a regulatory license in order to provide towing services throughout the state. The specific requirements for this license will depend on which state you are operating your business out of. You will also need a regulatory license to apply to be an AAA towing contractor. [1] Do an online search for the licensing requirements for towing companies for your state to access all required forms you must complete and send in.

  • Most towing licenses also require the payment of an annual fee of around $500 to maintain the license. [2]
  • Once you complete the necessary forms, you can mail them to the Business Licensing Service Office in your state along with the required fees. You should receive your business license within 3-4 weeks of processing. [3]

Obtain liability insurance for your towing business. The AAA will only consider tow truck companies that have liability insurance, including Garage and On Hook Insurance for all equipment, including tow trucks. As well, commercial tow truck owners and operators must have liability insurance to adhere to federal regulations and laws. [4]

  • You should get a company insurance policy that includes tow truck liability insurance, physical and medical damage insurance, comprehensive coverage, garage service insurance, and on-hook towing insurance. Garage liability insurance will cover any damages to a vehicle in service when it is parked or stored. On-hook towing insurance is designed for tow truck operators and will cover any repair or replacement costs if any vehicle you do not own is damaged as you are towing it.

Confirm your tow trucks have the required permits. All tow trucks used by your tow company must have the required permits in order to operate in the state and to qualify for an AAA affiliation. The required permits will vary by state but each truck should have at least one of the following permits: [5]

  • An Incident Management (IM) permit: This permit is required for a tow truck to do a non-consent tow initiated by a peace officer or to tow a vehicle from a traffic incident or accident. The IM tow truck can also be used to perform Private Property Tows or Consent Tows.
  • A Private Property (PP) Permit: This permit is required for a tow truck to do a non-consent tow authorized by a parking facility owner. The PP tow truck can also perform Consent Tows.
  • A Consent Tow (CT) Permit: This permit is required for a tow truck to do a Consent Tow allowed by the owner of the vehicle. The CT tow truck can only perform Consent Tows.

Ensure all your tow truck drivers have the required licenses. Before you apply to be an AAA towing contractor, you should make sure your towing company drivers are all licensed and have the necessary permits to operate your company tow trucks. Your tow truck operators or drivers must have at least one of the following licenses through your state regulatory body: [6]

  • An Incident Management (IM) License: This license is required in order to operate a tow truck with an Incident Management Permit. If a driver has an IM License, she can also operate a tow truck with a Private Property Permit or a Consent Tow Permit.
  • A Private Property (PP) License: This license is required to operate a tow truck with a Private Property Permit. If the driver has a PP License, she can also operate a truck with a Consent Tow Permit but cannot operate a truck with an IM Permit.
  • A Consent Tow (CT) License: This license is required to operate a tow truck that has a Consent Tow Permit. If the driver has a CP License, she cannot operate a tow truck that has an IM Permit or a PP Permit.

Set up your office and your employees with internet access. Your tow company office or base of operation should have a stable internet connection, as you will need internet access to process online submissions of a call payment from AAA. Your employees should have access to office computers that have an active internet connection. The AAA only issues call payments online.


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