When your car breaks down, the last thing you want to worry about is the unexpected expense of towing your vehicle to the nearest shop to get it repaired. This is when having additional insurance comes in handy.
While the towing-and-labor-coverage limits are different for each carrier that offers these services, they typically cover the cost of towing your car to the auto repair shop and completing a specified amount of necessary labor charges at the place of the breakdown. Some of these repairs include starting a dead battery, replacing a flat tire, providing lockout assistance, and delivering gas/oil.
Policyholders need to be aware that this coverage provides reimbursement payment only. What this means is that you need to pay for the service upfront and then file a claim with your receipt for reimbursement.
Most car insurance companies only offer towing and labor coverage if you have physical damage coverage, which involves comprehensive and collision as part of your policy. Some policies limit coverage and only pay when a claim against your physical damage coverage is activated after a covered accident.
Is towing and labor coverage mandatory?
No, towing and labor coverage is an option you can add to your auto insurance policy. Your insurance company may offer these options as an add-on or, depending on your coverage, include it as part of the plan.
Does the type of car affect the towing and labor cost?
Insurance companies consider different factors when calculating your premium, including the type and age of the vehicle you have, and miles you’ve driven.
If you’re driving a new car, it’s less likely to break down. However, if you’ve driven your vehicle for several years already, the cost of adding towing and labor coverage to your policy may be higher because there’s a higher chance of needing assistance.
What happens if I don’t have towing and labor coverage?
Without towing and labor coverage, you have to personally pay the expense of towing your vehicle as well as the labor costs that come with it. Unless you have roadside assistance coverage, towing charges are expensive, especially if your vehicle broke down far away from the city.
The more miles the tow truck needs to drive to the nearest shop, the more you'll have to pay out of pocket.
You can add towing and labor coverage to your policy at any time. If you're driving more miles than usual or think that this add-on is beneficial, speak to your agent and request to have it included in your policy.
Infinity Insurance Agency can help you with your auto policy. If you would like to add towing and labor coverage to your auto insurance premium, call one of our friendly agents at 1-855-478-3705 to receive a quote over the phone.