Towing Troubles: Unraveling The Auto Insurance Coverage Conundrum

Whether your auto insurance covers towing depends on your insurer and policy. Some insurance companies may cover towing if you're involved in a covered accident, even if you don't have roadside assistance coverage. However, most insurance companies won't cover towing due to a mechanical issue unless you have roadside assistance added to your policy. This coverage is usually inexpensive and can be purchased for around $5 to $15 per car, per month. If you're involved in an accident caused by another driver, the cost of towing your vehicle may be covered under the at-fault driver's liability coverage.

Towing after an accident

If your car is not drivable after an accident, it will need to be towed from the scene. The police will either call a tow truck or ask you to call one. If you are unable to make the call, the police will call one for you. If your car is still drivable, you will be allowed to drive it away from the scene.

If your car is to be towed, there are several steps you should take before the tow truck arrives:

• Photograph the accident scene, including the outside and inside of your vehicle, and the other vehicles involved, from multiple angles. These photos can be used as evidence in your insurance claim and any potential lawsuit.
• Exchange insurance information with the other driver(s) and, if possible, collect statements from them and any eyewitnesses. You can use your phone to record them.
• Remove anything of importance or value from your vehicle. It may be several days before you have access to your car again.
• If possible, find an auto body shop that can receive your car. This will save time and money by avoiding storage fees. If you are unable to do this, your car will be taken to the tow company's tow yard.
• If there is time, call your insurance company. You will need to report the accident to them eventually, and your policy may cover tows under certain situations. They may require you to use a specific towing service.

When the tow truck arrives, ask the driver where they are taking your car, how much they will charge for the tow, and whether there are any additional fees. Get documentation from the driver before turning your vehicle over to them. Make sure you only give your car to a tow truck driver who has been called to the scene. Anyone else who arrives may be trying to scam you and charge more.

Your auto insurance may cover towing and storage after an accident, depending on your policy. Some plans only cover it if you have roadside assistance. If the accident was the fault of another driver, their insurance company should pay for towing and storage. However, you should retrieve your vehicle as soon as possible, as insurance companies will only pay storage fees for as long as they consider reasonable.

Towing due to mechanical issues

If you have a liability-only policy, your car insurance will not cover towing due to mechanical issues. However, if you have full coverage, your insurance company may reimburse you for towing costs resulting from a collision, but this does not always include mechanical issues. Some full-coverage policies will only cover towing costs if you pay extra for roadside assistance.

Roadside assistance is usually an easy and affordable add-on to your policy, costing between $5 and $15 per car, per month. When purchased as an add-on, roadside assistance typically includes towing (up to a certain distance), jumpstarts and battery replacements, and fuel delivery if you run out of gas. Some insurers offer towing and labour coverage in addition to roadside assistance plans. Towing and labour plans typically cover towing, tire changes, and jump starts, but not the full scope of services available with roadside assistance.

If you don't have roadside assistance as part of your car insurance, you could consider purchasing it from a third-party provider, like AAA. Third-party providers offer the same roadside services you would get by adding it to your insurance policy, but some have extra perks. For example, AAA offers free trip-planning tools, identity theft monitoring, and thousands of shopping, entertainment, and dining discounts.

It's important to know exactly what is covered by your insurance policy by speaking to your insurer directly, as towing coverage varies from policy to policy.

When insurance covers towing costs

Whether your auto insurance covers towing costs depends on your insurer and policy.

Roadside assistance coverage can pay for a tow, up to a certain distance specified in your policy, if your vehicle is disabled. This is usually offered as an add-on to your policy for a low cost, and can include other services such as jump-starting a dead battery, fuel delivery, and locksmith services.

Your insurer might also cover the cost of towing if your vehicle is involved in a collision and you're unable to drive it. If you're involved in an accident caused by another driver, the cost of towing your vehicle may be covered under the at-fault driver's liability coverage. If you have a full-coverage policy, or liability insurance plus collision and comprehensive coverage, your tow may be covered.

Some insurance companies may cover towing if you're involved in a covered accident, even if you don't carry roadside assistance coverage. Comprehensive coverage, for example, may cover towing if you hit a deer.

It's important to know exactly what is covered by your insurance policy, as towing coverage varies.

Third-party roadside assistance

If your insurance doesn't offer roadside assistance, you can purchase it from a third-party provider. These third-party providers offer the same roadside services you would get by adding it to your insurance policy, but some have extra perks.

AAA

AAA, or the American Automobile Association, is one of the biggest names in organisations that help motorists out of a jam. AAA has been offering roadside assistance for over 100 years.

AAA's roadside assistance features towing service, flat-tire replacement, jump-starts, fuel delivery, locksmith services, and minor roadside repairs. Additional perks of AAA membership include discounts on car rentals, hotel bookings, and vehicle inspections.

There are three membership plans available. While each includes four service calls per year, the memberships differ in how far the tow truck will take you. The Classic plan offers 5 miles of towing or less, while the Plus plan extends to 100 miles and Premier includes one 200-mile tow plus three 100-mile tows. The more expensive the program, the more service vehicles are available to customers, including winching and vehicle extraction.

Pricing for AAA roadside assistance varies depending on the region of the country. For example, service starts at $56 annually for Classic membership in Southern California but can be higher in other areas.

AARP

AARP, or the American Association of Retired Persons, provides a roadside assistance service in partnership with Allstate. AARP's program is very similar to Allstate's; the insurance company manages both. The primary differences between Allstate and AARP coverage are the names of each membership tier.

AARP members are eligible for Roadside Assist and Roadside Elite coverage through Allstate. Roadside Assist includes visits from a tow truck, jump-starts, locksmith services, fuel delivery, and tire installation, with up to five service calls per year. Roadside Elite provides the same protections, with the towing range increased from 10 to 100 miles, the maximum number of service calls going from five to seven, and the addition of a $1,500 trip-interruption reimbursement.

There's another notable difference between the Assist and Elite membership levels. Service calls for the Assist tier (which costs $5.50 per month for the first year) break down into two calls for single members, three for couples, and five for families. It costs nothing to add a second member of the household to the membership, but to move up to family membership there is a $45 fee. Elite members ($10.92 per month for the first year) get four rescues for singles, five for couples, and seven for families, with a $60 upcharge for the latter. Renewal pricing for each membership level is also higher than the first-year costs ($6.11 monthly for Assist and $13.65 for Elite).

AT&T

AT&T offers roadside assistance in partnership with Allstate. Members can receive jump-starts, up to 3 gallons of gas delivered, lockout services (up to $50), winching and towing, minor repairs, and flat-tire replacement. Membership includes discounts on Avis car rentals. AT&T provides four service calls per year.

Pricing starts at $2.99 per month. You must be an AT&T wireless customer to participate.

Better World Club

Better World Club has put an eco-friendly spin on roadside assistance by focusing on carbon-neutral operation for the past two decades.

There are two editions of Better World Club membership for automobiles, each with the same general protections and services. Basic members benefit from towing, flat-tire replacement, lockout service, winching, fuel delivery, and trip-interruption coverage. The Premium tier expands the towing range from 5 miles to 100 miles. The trip interruption maximum grows from $1,000 to $1,500, and the tier waives up to 2 gallons of fuel costs. Adding recreational vehicle coverage to Premium plans is possible for an additional fee.

Better World Club charges $61.95 per year for Basic membership and $99.95 per year for Premium. There is a $15 sign-up fee unless you are moving over from AAA, in which case there's no charge. A 10% discount applies to hybrid and EV owners, while a gas-guzzler surcharge applies in some cases for less efficient vehicles.

Good Sam

Good Sam is known for offering services to owners of recreational vehicles, but the organisation also provides roadside assistance to car and truck owners.

Good Sam's roadside assistance coverage offers three options for motorists. Its Platinum plan includes unlimited-mileage towing; flat-tire replacement; fuel, oil, and coolant delivery; emergency repairs; locksmith services; and jump-starts. The Platinum+ plan adds trip-interruption reimbursement (up to $1,200), while the Platinum Complete option throws in emergency medical assistance and road-hazard coverage for tires and wheels.

Each of these plans applies to the entire household, but there are exclusions regarding vehicle types.

Verizon

Verizon offers a roadside assistance service that covers towing (up to 10 miles, with $5 per mile charged past that limit), battery charging, fuel delivery (up to 3 gallons), winching, and flat-tire replacement using the existing spare.

Unlike AT&T, Verizon roadside assistance offers little in the way of additional perks. However, it does provide a unique transferability clause that allows anyone using an enrolled mobile device to benefit from the program, regardless of whether their name is on the account. The service costs $4.99 per year per device.

Reimbursement for towing

Whether your auto insurance will cover towing costs depends on your insurer and policy. If you have roadside assistance coverage, your insurance company will likely cover towing costs up to a certain distance specified in your policy. Some insurance companies may also cover towing costs if you're involved in a covered accident, even without roadside assistance coverage.

If you have a liability-only policy, your insurance likely won't cover towing costs. However, if you have full coverage or a comprehensive and collision policy, your insurance may reimburse you for towing expenses resulting from a collision. In some cases, comprehensive and collision coverage may require you to meet a deductible before coverage kicks in.

Some insurance companies offer towing and labor coverage, which typically includes towing, tire changes, and jump starts, but may not include the full scope of services provided by roadside assistance. Additionally, some insurers offer multiple tiers of roadside assistance coverage, with varying mileage limits for towing.

It's important to note that even if your insurance covers towing, there may be limits to the distance or cost covered. You may be responsible for any towing costs that exceed these limits. Therefore, it's crucial to review your policy carefully to understand the specific coverage provided by your insurer.

If you require reimbursement for towing expenses, be sure to document all expenses and save your receipts. This will make it easier to submit a claim and ensure a smoother reimbursement process.

Frequently asked questions