Does Towing and Roadside Assistance Impact Insurance Premium?

When your car breaks down, it’s scary, stressful, and dangerous; especially if it happens when you’re far from home. At some point, you’re probably going to find yourself stranded; you’ll lock your keys in your vehicle, get a flat tire, have a dead battery, or any type of mechanical glitch that can happen anytime, anywhere. It’s times like these that emergency roadside assistance coverage can really come in handy. Any of these scenarios could result in a high bill and a lot of stress. But if you have roadside assistance on your plan, you can enjoy peace of mind, and maybe a few more dollars in the bank.

What is Towing and Roadside Assistance?

Towing and roadside assistance is an auto insurance policy add-on that provides coverage if you get stranded or your car breaks down. This auto insurance coverage helps you handle costs like locksmith services, towing, battery service, gas delivery, and more. The policy limits for emergency roadside assistance are generally low since it’s meant to be used in an emergency and not for major mechanical repairs.

For example, if you were driving and you ran out of gas, you’d make a call, and a professional would provide fuel delivery. In more extreme cases, if your vehicle broke down, towing and roadside assistance would cover the cost of having your vehicle towed to the nearest repair shop.

What Does It Cover?

Towing and roadside assistance provides peace of mind, whether you’re a mile from your driveway or many miles away. Most programs cover:

• Towing to the nearest eligible repair shop
• Tire changes
• Car key replacement service
• Emergency lockout service
• Pulling car out of mud
• Jump-starts
• Fuel delivery

It’s important to note that your policy’s coverage may differ slightly. To find out what is and is not covered by your auto insurance company’s towing and roadside assistance program, talk to your auto insurance agent.

Roadside Assistance Claims Can Affect Your Premium

Many auto insurance companies offer optional roadside assistance, which can be added to your policy for just a few dollars a month. However, when some insurers evaluate your claim history calculating your premium, they take roadside assistance claims into account. This could cause you to pay a slightly higher premium. Other insurance companies will allow so many claims per policy period, and if you exceed this limit, they’ll remove that benefit upon the renewal of your policy, but your premium won’t be affected. Each company handles it differently.

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Is Towing and Roadside Service Included?

How this added auto insurance coverage works varies greatly from company to company. It is usually an optional coverage that can be added to your auto insurance policy. It’s important to ask your agent if it has been added to your policy. Towing and roadside assistance are usually very inexpensive. Sometimes even as low as $1/month.

This cost obviously does vary from company to company, but don’t just tell your insurance agent that you want “full coverage” and assume they’ve added it. You must ask to make certain it has been added. Many people wish to have the coverage removed thinking it will save money, but it is so inexpensive, you may be hurting yourself in the future.

You Should Ask Your Agent These Questions:

• Do I have 24/7 nationwide towing and roadside assistance/service?
• Do I need to pay out of pocket when the tow truck shows up?
• How much coverage do I have? How many miles are covered?
• What happens if I run out of gas, or my engine overheats, do I have coverage? If so, how much is covered?
• Do I have Towing and Winching coverage? If so, how much coverage do I have and how does it work?
• Do I have Dead Battery and Jump Start Coverage? If I do, how does it work?
• Do I have Flat Tire Coverage? If I do, how does it work? What if I don’t have a donut tire or replacement tire with me?
• What happens if I lock myself out of my car, do I have a Lockout Service? If I do, how much is covered?
• Does my coverage follow me everywhere I drive, or does my coverage stay with my car? Meaning, if I am renting a vehicle, and I need a tow, is it covered? Or, what if my friend is using my car with my permission, and he/she needs a tow, are they covered.