Roadside Assistance: Does Auto Insurance Cover Damage?

Roadside assistance is a valuable service that provides drivers with peace of mind in the event of vehicle breakdowns or other emergencies. While it typically covers services like towing, jump-starts, fuel delivery, and flat tire changes, there are questions about whether auto insurance will cover damage incurred during these services. It's important to understand that while roadside assistance claims don't carry the same weight as other car insurance claims, frequent claims could impact your insurance rates or even lead to your insurer considering you high-risk. This is because multiple claims in a short period may indicate that your vehicle requires significant maintenance or is unreliable. Therefore, it's essential to carefully review the terms and conditions of your roadside assistance coverage to know its limitations and how it might affect your auto insurance premiums.

Roadside assistance insurance claims and their impact on insurance rates

Roadside assistance coverage is designed to assist and pay for expenses incurred from a broken-down or disabled vehicle. Typically, there are four ways to get roadside assistance coverage: adding it to your auto insurance policy, paying per use, purchasing an auto club membership, or receiving coverage as a benefit from a company.

While roadside assistance services are there for drivers in case of emergency, filing too many claims for roadside assistance could affect insurance rates. This is because multiple roadside assistance claims in a short period suggest to insurance companies that a driver's car is unreliable or needs considerable maintenance, which can translate to high risk.

However, using roadside assistance coverage wisely won't make rates go up. Insurance companies want drivers to use their emergency roadside coverage to be proactive about their safety. If drivers use it infrequently and only in true emergencies, their insurance rates will most likely not be affected.

Roadside assistance plans from auto insurance companies often cover the vehicle instead of the driver. So, if a driver is operating a friend's vehicle and it breaks down, their auto insurance roadside assistance likely won't help. In contrast, assistance plans from organizations such as AAA cover the member, so members can call for assistance no matter which vehicle they're travelling in.

In conclusion, while roadside assistance insurance claims can impact insurance rates, the effect depends on the number of claims and the insurance company's policies. Drivers should contact their insurance agent to understand how multiple roadside assistance claims could affect their rates or coverage.

How roadside assistance plans differ in what they cover

Roadside assistance plans can be purchased from auto clubs, insurance providers, car manufacturers, credit card companies, and even cell phone providers. While they all provide similar services, they differ in what they cover and their limitations.

Auto Clubs

Auto clubs like AAA, Better World Club, and Good Sam offer the most comprehensive benefits and higher towing mileage allowances. They are slightly more expensive, ranging from $70 to $150 per year, but they provide benefits such as free service calls, reimbursement for locksmith services, and trip interruption coverage.

Insurance Providers

Insurance companies allow you to add roadside assistance to your car insurance policy, with some plans starting as low as $10 to $20 per year. However, these plans often come with limitations, such as a restricted number of occurrences per year or maximum miles for towing. Claims under these plans may also be considered as insurance claims, which could impact your insurance rates if used frequently.

Auto Manufacturers

Some auto manufacturers, like Toyota and Honda, offer free roadside assistance for new cars for a limited period. This type of coverage is usually tied to the vehicle, so it will be lost if the car is sold.

Credit Card Companies

Credit card companies may offer roadside assistance programs with varying benefits. Some provide a service hotline, while others offer pay-per-use programs or charge a flat fee per incident. The services are typically charged to your card, and there may be pre-negotiated fees for specific services.

Cell Phone Providers

Cell phone providers like AT&T offer roadside assistance plans for a monthly fee. These plans usually cover a limited number of calls per year and have a maximum coverage amount per incident. The coverage is linked to a specific phone, so the phone must be present at the vehicle to qualify for assistance.

Standalone Providers

Standalone providers, like Honk, offer roadside assistance through smartphone apps. They connect you with providers for a flat fee per service call, without the need for a membership.

It's important to carefully review the terms and conditions of each plan to understand the specific coverage, limitations, and exclusions.

The cost of roadside assistance plans

Standalone roadside assistance plans can range from $62 to $600 per year, with prices varying based on the level of coverage and the provider. Plans from membership organizations like AAA and Good Sam tend to be more expensive, ranging from $70 to $150 per year. On the other hand, insurance companies offer cheaper roadside assistance add-ons, typically ranging from $12 to $60 per year. It's important to note that insurance company plans may have lower coverage limits and more limitations.

When choosing a roadside assistance plan, it's essential to consider factors such as the number of service calls allowed, towing mileage limits, and the inclusion of mechanical services and winching. Additionally, some plans offer family member coverage and trip interruption benefits, which can be valuable for frequent travellers or those with older vehicles.

Some companies, like Liberty Mutual, offer very affordable basic plans starting at around $12 per year, while others, like AAA, offer a range of plans with more comprehensive coverage options at higher price points. It's recommended to compare multiple options and consider your specific needs when choosing a roadside assistance plan.

How to choose a roadside assistance plan

When choosing a roadside assistance plan, it's important to consider your needs and preferences. Here are some factors to help you make an informed decision:

• Cost: Evaluate the price of the roadside assistance plan. Some plans may offer more comprehensive coverage but at a higher cost. It's important to find a balance between the services offered and the price that suits your budget.
• Towing mileage limit: Check the towing mileage limit offered by the plan. Some plans may offer a higher limit, allowing your vehicle to be towed over longer distances. This can be beneficial if you frequently travel long distances or in remote areas.
• Number of service calls per year: Different plans have varying limits on the number of service calls or tows you can make in a year. Choose a plan that offers a sufficient number of service calls to meet your needs.
• Additional services: Consider the range of additional services offered beyond basic towing and jump-starting. For example, some plans may include winching (pulling your car out of a ditch), lost key service, trip interruption coverage, or coverage for family members. Choose a plan that includes the services most relevant to your situation.
• Plan provider: You can obtain roadside assistance plans from various providers, including auto clubs, car insurance companies, car manufacturers, extended warranty companies, and even credit card companies. Compare the benefits, features, and costs offered by different providers to find the best fit for your needs.
• Vehicle coverage: Ensure that the roadside assistance plan covers your specific vehicle type. Some plans may have restrictions or additional charges for certain vehicle types, such as motorcycles, RVs, or electric vehicles.
• Customer service: Consider the reputation and reliability of the plan provider. Look for a company with a strong track record of responsive and efficient customer service. You can often find reviews or ratings online to help you assess their level of customer satisfaction.
• Plan flexibility: Evaluate the flexibility of the plan. Some providers may offer multiple tiers or customizable options to suit your specific needs. Look for a plan that allows you to adjust the level of coverage based on your preferences and budget.
• Discounts and perks: In addition to core services, some roadside assistance plans offer discounts and perks, such as dining, hotel, shopping, or fuel discounts. These additional benefits can enhance the value of the plan and make it more cost-effective.

By carefully considering these factors and comparing different roadside assistance plans, you can make an informed decision that best suits your needs, budget, and travel habits.

The limitations of roadside assistance plans

Roadside assistance plans have their limitations, and it is important to be aware of these when considering purchasing such a plan. Here are some of the limitations of roadside assistance plans:

• Vehicle-specific coverage: Many roadside assistance plans are vehicle-specific, meaning they only cover the vehicle itself and not the driver. So, if you are driving a rental car or a friend's car and it breaks down, your roadside assistance plan may not cover the costs of getting help. In such cases, you would need to have a plan that covers you as an individual rather than just the vehicle.
• Limited service calls: Most roadside assistance plans have limits on the number of service calls or tows you can make in a year. For example, some plans may only allow four or five service calls per year. After that, you may have to pay additional costs out of pocket.
• Towing mileage limits: Roadside assistance plans typically have limits on how far they will tow your vehicle from the breakdown location. These limits can vary, with some plans offering as little as 5 miles, while others may offer up to 20 or even 100 miles of towing. It's important to check the towing mileage limit before choosing a plan to ensure it meets your needs.
• Exclusions and additional costs: While roadside assistance plans cover a range of services, there may be exclusions or additional costs for certain services. For example, some plans may charge extra for winching services or for fuel delivery. It's important to carefully read the terms and conditions of a plan to understand what is and isn't covered.
• Limitations on mechanical repairs: While some roadside assistance plans offer minor mechanical repairs as part of their service, there may be limitations on the types of repairs covered and the duration of the repair. Some plans may only cover repairs that can be completed within an hour, while others may have specific exclusions, such as repairs related to transmission issues or fluid leaks.
• Geographical restrictions: The availability of roadside assistance plans and the extent of their coverage can vary depending on your location. For example, certain plans may only be available in specific states or regions, and the towing mileage limits may differ based on your location. It's important to check the coverage area and any geographical restrictions before choosing a plan.
• Frequency of usage: Frequent usage of roadside assistance services may impact your insurance rates or coverage. While occasional use of roadside assistance is generally not an issue, multiple claims in a short period could lead to increased insurance rates or even the cancellation of your coverage. It's important to understand the potential implications of frequent usage before relying heavily on roadside assistance services.

Frequently asked questions