Owner-Operator breakdown and accident tow truck business

Motorists paying directly, insurers, roadside assistance and fleet contractors, and panel beaters or mechanics who need vehicles moved.

A call-out fee plus a rate per kilometre, with extra charges for after-hours work, winching or difficult recoveries. Contract work for roadside assistance networks is usually at set rates.

• Safe driving of a heavy vehicle
• Securing and loading vehicles correctly
• Calm customer service in stressful situations
• Willingness to work nights and weekends

• Tow truck licensing varies by state and territory, and accident towing is more tightly regulated in some places, so check with your state licensing body
• Check whether the truck's weight needs a heavy vehicle licence class
• Public liability, motor vehicle and goods-in-tow insurance, plus workers compensation if you hire a driver
• Large upfront costs (a used tilt tray, insurance, signage and working capital) and irregular, on-call hours
• Roadside and crash scenes are hazardous, so check safety training and equipment requirements

Startup costs are typically estimated at around $100,000 to $220,000, depending on the used tilt tray you choose, insurance, signage and the working capital you set aside. Hours are irregular, so allow a buffer for quiet weeks.

Things to check: tow truck licensing varies by state and territory, and accident towing is more tightly regulated in some places, so check with your state licensing body. Also check whether the truck's weight needs a heavy vehicle licence class, and which insurance you need.

Monthly revenue is typically estimated at around $5,000 to $20,000, depending on the hours you work, the jobs you win and your mix of motorists, insurers and roadside assistance work. The estimate assumes at least about 30 hours a week, often on call.