For most of us, our car is important and a significant investment.  If for any reason we need to have it towed then we want to know that the person we’re using is highly reliable and capable of taking reasonable care of our car.

This means that we shouldn’t put our faith in someone to tow the car who isn’t reputable. Depending on the state, a tow company may be required by law to be licensed and bonded.  This term “Licensed and bonded” get thrown around quite a bit in the towing industry – so what does it mean exactly?  Let’s dig into the details…

What Is A Bond?

It is something that is purchased and the money is controlled by the state or bond issuer to make sure that the person bonded meet all agreements made in their license or contract. This helps to protect the state and the public should the bonded company fail in their obligations in any way and the failure leads to damages.

Another way in which a bond helps the public is by the fact that whether it’s the state or a surety company that bonded the tow company,  it usually requires going through a process that helps determine whether or not the company is up to a standard that makes them worthy of being backed financially. This means that if they are bonded they likely meet high standards.

What Does It Mean To Be Licensed?

Most states will require a tow company to have a business license. In most states, if a company is operating without a business license then they are operating outside of state law. Even if there is a city or state that would allow someone to operate without a specific license you shouldn’t use someone unlicensed because they’re not a legitimate business.

Even if someone is willing to tow your vehicle for a cheaper price you have no guarantee of what kind of care or precautions they will take with your car.

If you’ve ever seen a tow truck that is 25 years old and rusted out with worn-out hooks and chains then it’s likely that you were glad they weren’t towing your car.  Just because someone can offer a cheap price doesn’t mean that it’s a valuable service they are offering. In fact, the reason why legitimate businesses often charge more is that they follow the rules, they have quality equipment that can tow your car safely, and they pay the necessary fees to be licensed, insured, and when necessary, bonded.

What Does This Have To Do With Towing?

Being “Licensed and Bonded”, as we are in the st simply means that the company is a legitimate business that follows all the required rules of the state they operate in. It also means that they will follow all needed safety precautions and they will use equipment that is up to the standards set by state law.

Anyone who does not carry the appropriate license, bond, and insurance is operating a service that has failed to operate as a legitimate business.