How to Start in Canada

How to Start a Towing Business in Canada

Start a towing business in Canada: Ontario certification, CVOR and National Safety Code rules, insurance minimums, municipal zoning, and pricing structure.

Written October 25, 2026 · Edited November 6, 2026 · 14 min read

Applies in: across Canada

The short answer

Towing is a carrier business first and a truck business second, and in Ontario it is a certified business on top of that. Every province runs commercial vehicle safety under the National Safety Code, but the certificate has a different name in each province: a CVOR in Ontario, a Safety Fitness Certificate in Alberta, a safety certificate in British Columbia. Ontario then adds its own layer under the Towing and Storage Safety and Enforcement Act, 2021: a tow operator certificate for the business, a tow driver certificate for each driver, and a vehicle storage operator certificate if you store vehicles, each with its own fee and renewal period, and with fixed insurance minimums for operators. The truck is the last thing to buy, not the first. Get the carrier certificate, the Ontario certificates if you work in Ontario, the insurance, and a yard that meets municipal zoning, and then the truck has work it can legally do.

Step 1: Pick a towing lane — and start with one

Towing lanes look alike from the roadside and run differently as a business:

  • Roadside and club work: breakdowns, flat tires, and lockouts, dispatched by motor clubs and insurers. Steady volume, set rates, and a phone that must get answered at night.
  • Police and municipal contract work: collisions and impounds, called by police or a city. The work arrives on someone else's schedule, the paperwork is heavier, and the yard matters as much as the truck.
  • Long-distance vehicle transport: cars moved between cities for owners, dealers, and auctions. Fewer calls, longer runs, and a price built on distance.
  • Heavy recovery: trucks, buses, and equipment off the road or rolled over. Specialist kit, specialist training, and the highest stakes when a lift goes wrong.

Start with one lane. A single flatbed doing club calls, police impounds, and heavy recovery in the first month is really doing none of them well. One lane, done reliably, earns the contracts that let you add the second truck.

Step 2: The carrier certificate — CVOR in Ontario, Safety Fitness elsewhere

This is the gate most new towing businesses miss, because it is not about the truck. It is about the operator:

  • Ontario: commercial vehicles such as buses, trucks, or tow trucks require a valid CVOR certificate before they can be operated in Ontario. To get a new CVOR certificate you must apply online or by mail or fax, pay a $287 fee (HST included: a $255 processing fee plus a $32 learning and assessment fee), and complete the online learning and assessment within six months of applying if you are an Ontario-based applicant. Since November 1, 2024, the online learning and assessment has replaced the old knowledge test at DriveTest centres. The CVOR tracks the operator's safety record, so collisions, inspections, and convictions land on the operator, not just on the driver.
  • Alberta: carriers must obtain a Safety Fitness Certificate before they can begin operations. The certificate applies to a truck or trailer, or a combination, with a registered weight of 11,794 kg or more operating solely within Alberta, and to a truck or trailer, or a combination, with a registered weight of more than 4,500 kg used to transport goods on a highway outside Alberta.
  • British Columbia: carriers obtain a safety certificate through the Commercial Vehicle Safety and Enforcement branch, and the certificate applies to vehicles used in the course of business, including a truck or truck tractor with a licensed gross vehicle weight exceeding 5,000 kg, including an attached trailer.
  • Every province and territory uses the National Safety Code as the base for its commercial vehicle rules, but the thresholds, the forms, and the office differ. Apply in the province where the truck will be based, and check the rule again before running a truck into a second province, because the home certificate does not automatically answer the second province's question.

Step 3: Ontario's three towing certificates

Under the Towing and Storage Safety and Enforcement Act, 2021, a certificate is required to provide towing or vehicle storage services in Ontario. There are three types, and they are separate:

  • Tow operator certificate: for the person or company that offers towing services. It costs $575 per year. The applicant must have a valid Ontario CVOR certificate, or a National Safety Certificate if the applicant does not have a CVOR, and must meet commercial vehicle safety requirements, including requirements for vehicle inspections and equipment. Tow truck operators are currently exempt from Hours of Service and Electronic Logging Device requirements in Ontario.
  • Tow driver certificate: for each driver. It costs $195 for 3 years. The driver must have a valid driver's licence of minimum G class, a complete Criminal Record and Judicial Matters Check issued within the past 90 days, and a completed one-time mandatory driver training program approved by the Ministry of Transportation. Certain convictions and licence suspensions can make an applicant ineligible for several years, so check eligibility before booking the training course.
  • Vehicle storage operator certificate: for the person or company that offers vehicle storage facilities or services. It costs $575 per year. If you tow a vehicle to your own yard and hold it there, that is storage work, and it needs this certificate in addition to the tow operator certificate.
  • Renewal: tow operator and vehicle storage certificates must be renewed every year; tow driver certificates must be renewed every 3 years. Put all three dates in the calendar the day the certificates arrive, because a lapsed certificate is a truck that cannot legally work.

Step 4: Register the business and set up tax before the money arrives

The business paperwork is the cheapest part of the startup, and it is the part most often left until a club or an insurer asks for an invoice:

  • Structure: most towing operators start as sole proprietors and incorporate later, when revenue and liability justify it. If you trade under a name other than your own legal name, register that name provincially.
  • Ontario: registering a sole proprietorship under a business name costs $60 through the Ontario Business Registry and lasts five years. Operating under your own name does not require registration.
  • British Columbia: request name approval first ($30), then register the sole proprietorship ($40) using the name request number within 56 days, or the approval lapses.
  • CRA business number: free, and needed for payroll and GST/HST accounts. Register for GST/HST once taxable sales pass $30,000 in a single calendar quarter or over four consecutive calendar quarters, or voluntarily before that so you can claim input tax credits on fuel, parts, and vehicle costs.
  • Municipal business licence: check your city's licensing page for the office and the yard, separately from the towing certificates. A city may license a business generally, regulate a yard or a sign, or require nothing towing-specific. Do not assume a neighbouring city's answer applies to yours.

Step 5: Insurance — the Ontario minimums and the two risks

Two conversations, in the order a broker will want them:

  • Ontario certificate minimums: tow operators must hold $2 million in liability insurance for personal injury or death and loss or damage to property, $100,000 in consumer vehicle insurance, and $50,000 in cargo liability insurance. Vehicle storage operators must hold the same three minimums. These figures are the floor for the Ontario certificate, not a suggested amount, and a contract with a club, an insurer, or a police service may require more.
  • The two risks: the vehicle on the hook and the vehicle in the yard. A policy can cover damage while towing without covering damage while stored, and the reverse. Confirm both in writing before the first tow, and confirm that the policy covers the truck's commercial use, not personal use. A personal auto policy does not cover a tow truck working for hire.
  • Outside Ontario, there is no single national set of towing insurance minimums to quote. The broker quotes to the province's rules and to the contracts you want, so bring the contracts to the broker meeting, not just the truck's plate number.

Step 6: The yard, the truck, and the dispatch

The yard decides whether police and club work is open to you at all:

  • Zoning first: in Ontario, vehicle storage operators must meet municipal zoning requirements for all vehicle storage locations, and Ontario tells applicants to contact their municipality for information on zoning. Check zoning before signing a lease, because a yard that cannot legally store vehicles is a lease on an empty lot.
  • Security and access: a fenced yard, lighting, and a way for owners to reach their vehicles during stated hours. The yard is where disputes start, so keep the gate, the hours, and the release process written down and consistent.
  • The truck: a flatbed suits most roadside and transport work, because the vehicle rides fully loaded and the load is simple to secure. A wheel-lift suits tight city streets and quick hooks. Heavy recovery needs a rotator or a heavy wrecker, which is a different purchase and a different training course, not a bigger flatbed. Buy the truck for the lane you picked, not for every lane at once.
  • Dispatch: one phone number, answered at night, with a log of every call, including the vehicle, the pickup, the drop-off, and the price quoted. The log is the record that settles the dispute about what was agreed, and it is also the record that shows a club or a police service that you run a reliable operation.

Step 7: Pricing jobs — hook, distance, recovery, storage, after-hours

Towing quotes follow one model, and the customer-protection rules are where operators lose money:

  • Dispatch or hook charge: the charge for getting the truck to the vehicle and loading it. It covers the run to the scene, not the distance of the tow.
  • Distance charge: the charge for the tow itself, per kilometre from pickup to drop-off. State where the distance is measured from, because a customer who expected the hook point will dispute a price measured from the yard.
  • Winching or recovery charge: the charge when the vehicle is off the road, stuck, or rolled, and the job needs winching, rigging, or extra crew. Price it as its own line, because a recovery that takes two hours is not a standard hook.
  • Storage charge: the charge per day when the vehicle sits in your yard. State the daily rate, when the day starts, and how release works, before the vehicle arrives at the yard.
  • After-hours charge: the charge when the call comes outside business hours. State the hours it applies to, because a customer who called at 2 a.m. will still dispute a charge they never saw coming.
  • Ontario conduct rules: tow and vehicle storage operators must follow rules and a code of conduct when doing business with customers. Publish your rates, state them to the customer before the tow, and give an itemized invoice. A price the customer first sees on the invoice is a dispute, not a price, and in Ontario it is also a conduct problem.

Step 8: Finding the first clients

The first contracts rarely come from advertising. They come from buyers who already need a reliable truck:

  • Motor clubs and insurers buy roadside volume, and they buy on response time and paperwork first: answer the phone, arrive when promised, and send a clean invoice. One club contract that trusts you is worth a season of ads, because the calls keep coming.
  • Police and municipal work comes through contracts and rotation lists, and the yard, the certificates, and the insurance are the entry ticket. No certificate, no list.
  • Dealers, auctions, repair shops, and fleets move vehicles regularly, and they buy on a standing rate and a driver they know. A shop that trusts your driver will call your driver first.
  • A simple website and online listings come next: service area, services, phone number, and rates. Reviews follow completed jobs, not advertising spend — ask every happy customer for one, and answer every review like a person, not a brand.

What not to do

  • Do not run a tow truck in Ontario without a valid CVOR certificate and the Ontario tow operator and tow driver certificates that apply.
  • Do not store a towed vehicle in Ontario without a vehicle storage operator certificate.
  • Do not sign a yard lease in Ontario before checking municipal zoning for vehicle storage at that location.
  • Do not hire a driver in Ontario before checking the driver's eligibility, licence class, criminal record check, and training requirements.
  • Do not let a certificate lapse: tow operator and storage certificates renew every year in Ontario, and tow driver certificates renew every 3 years.
  • Do not start a tow without stating the price components and giving an itemized invoice.
  • Do not assume a certificate from one province answers another province's carrier rules.
  • Do not promise a response time, a recovery, or a coverage level your truck, your crew, or your policy cannot deliver.

Related guides:

Starting a towing business in Canada, in six steps

  1. Pick a towing laneRoadside towing, police and club contract work, long-distance transport, or heavy recovery. Each lane needs a different truck and a different buyer.
  2. Get the carrier certificateIn Ontario, a CVOR certificate; in other provinces, the Safety Fitness Certificate issued under the National Safety Code. Get it before the truck works.
  3. Get the Ontario certificates if you work in OntarioA tow operator certificate for the business, a tow driver certificate for each driver, and a vehicle storage operator certificate if you store vehicles.
  4. Register the businessProvincial business name registration if you trade under a name, a free CRA business number, and GST/HST registration once taxable sales pass $30,000.
  5. Insure the trucks and the vehicles you towIn Ontario, tow operators must hold $2 million liability, $100,000 consumer vehicle insurance, and $50,000 cargo liability insurance.
  6. Set the yard, the dispatch, and the published ratesA storage location that meets municipal zoning, a phone that gets answered, and rates the customer can see before the hook goes on.

Verified fees in the towing-business startup paperwork

Ontario CVOR certificate, new application$287 (HST included)
Ontario tow operator certificate$575 per year
Ontario tow driver certificate$195 for 3 years
Ontario vehicle storage operator certificate$575 per year
CRA business number$0 — free
GST/HST registration threshold$30,000 in taxable sales

Questions people ask

Do I need a CVOR or a National Safety Code certificate to tow in Canada?

Yes, through the carrier system in the province where the truck is based, and the name changes by province. In Ontario, commercial vehicles such as buses, trucks, or tow trucks require a valid CVOR (Commercial Vehicle Operator's Registration) certificate before they can be operated in Ontario, and a new CVOR application costs $287 (HST included: a $255 processing fee plus a $32 learning and assessment fee). Since November 1, 2024, Ontario-based applicants complete the learning and assessment online within six months of applying, instead of the old knowledge test at a DriveTest centre. Outside Ontario, the same safety system runs under the National Safety Code: Alberta states that carriers must obtain a Safety Fitness Certificate before they can begin operations, and British Columbia issues a safety certificate through its Commercial Vehicle Safety and Enforcement branch. The weight thresholds differ by province, so check the rule in the province where the truck will be based before the truck works, and do not assume an Ontario CVOR answers a British Columbia or Alberta question.

What certificates does Ontario require for towing?

Three, under the Towing and Storage Safety and Enforcement Act, 2021. A tow operator certificate for the person or company that offers towing services, a tow driver certificate for each driver, and a vehicle storage operator certificate for the person or company that offers vehicle storage facilities or services. Tow operator and vehicle storage certificates must be renewed every year, and tow driver certificates must be renewed every 3 years. A tow operator applicant must have a valid Ontario CVOR certificate, or a National Safety Certificate if the applicant does not have a CVOR, and must meet commercial vehicle safety requirements, including vehicle inspections and equipment. Tow truck operators are currently exempt from Hours of Service and Electronic Logging Device requirements in Ontario.

What does an Ontario tow driver need to get certified?

A valid driver's licence of minimum G class, a complete Criminal Record and Judicial Matters Check issued within the past 90 days, and a completed one-time mandatory driver training program approved by the Ministry of Transportation. The applicant must also not have been convicted of certain offences or have a licence suspension under the Criminal Code of Canada, the Highway Traffic Act, the Controlled Drugs and Substances Act, or the Compulsory Automobile Insurance Act, must have no outstanding fees or fines, and must not have been refused a municipal licence or a certificate under the Towing and Storage Safety and Enforcement Act. Check the full eligibility list before booking the training course, because certain convictions or suspensions can make an applicant ineligible for several years.

What insurance must an Ontario tow operator hold?

Minimum insurance coverage of $2 million in liability insurance for personal injury or death and loss or damage to property, $100,000 in consumer vehicle insurance, and $50,000 in cargo liability insurance. Vehicle storage operators in Ontario must hold the same three minimums. These are Ontario certificate requirements, not a national standard, so a broker in another province will quote to that province's rules and to what the contracts you want require. Confirm in writing that the policy covers the vehicle while it is on the hook and while it sits in your yard, because those are two different risks and a policy can cover one without the other.

What municipal rules apply to a towing business?

In Ontario, the certificate system is provincial, but the yard is still a municipal question: Ontario states that vehicle storage operators must meet municipal zoning requirements for all vehicle storage locations, and tells applicants to contact their municipality for information on zoning. So check zoning for the yard before signing a lease, even if the trucks themselves are certified provincially. Outside Ontario, the split between provincial carrier rules and city rules differs by province, so check both the provincial carrier authority and the city where the truck and the yard will sit, and do not assume one clearance answers the other.

How do towing businesses price jobs?

By components, stated before the hook goes on. The usual components are a dispatch or hook charge for getting the truck to the vehicle and loading it, a distance charge for the tow itself, a winching or recovery charge when the vehicle is off the road or stuck, a storage charge per day when the vehicle sits in your yard, and an after-hours charge when the call comes outside business hours. Ontario adds a customer-protection layer: tow and vehicle storage operators must follow rules and a code of conduct when doing business with customers, so publish your rates, state them to the customer before the tow, and give an itemized invoice. A price the customer first sees on the invoice is a dispute, not a price.

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