Dropped the fiver today, and how was your day? Part 1

IMHO the tow truck driver should not be jerking on a stuck vehicle. Slow and steady pulls do the job or else re-rig and try again.
I hope your ins company is going after the tow company for the damages. From your description of what happened, they are at fault.

ps Take plenty of pictures and document every phone call, email, and conversation.