Towing auto insurance coverage is not much more than what it sounds like. This type of coverage is an addition to an auto insurance policy that helps you to either enjoy towing services provided by the insurer or get reimbursement for towing services provided. There are a million and one reasons why a car might break down. Luckily, towing auto insurance coverage shields you from the high cost of hiring a tow truck. It is always specified in auto insurance policies, featuring this coverage, the exact amount the insurance company will pay in the event towing is needed. They will also specify the other requirements you might have to invoke this insurance cover. Some of these eventualities include locking your keys inside the car or running out of gas.
Abuse of the policy
There is a cut off limit to the towing auto insurance coverage. As such, you may want to check with your insurance agent how many times in a year you are allowed to use this coverage before its cut off. Also, you want to refrain from abusing your towing auto insurance coverage as this will wrack up comp claims on your CLUE report or claims history. In most insurance companies, you allowed to use this policy only twice a year. In some accidents, the damage to the car is so minor that the car can be driven from the scene of accident. In other accidents however, the car might sustain more damage hence cannot be driven from the scene. In this case, you will obviously be required to tow your car to the repair shop. Without the towing auto insurance coverage, you will be forced to foot the full cost of the tow. However, if you are covered by this coverage, your insurance company will pay for the towing services, labor included. It is imperative for you, the driver, to understand the differences there are between roadside assistance coverage and towing reimbursement coverage, all under towing auto insurance coverage. Many people believe that these two insurance covers are one and the same thing. There are, however, a few differences between the two.
It is common practice in many insurance companies, to offer towing reimbursement coverage to all vehicles that sustain physical damage, as known as collision and comprehensive coverage. With roadside assistance coverage, the insured can enroll all types of vehicles without considering the coverage. These two types also employ different claim processes. In towing reimbursement insurance, the insurance company reimburses up to the coverage limit agreed upon in the policy. What the insured does is pay for the towing services from their own pocket before going ahead and making a reimbursement request to the insurance company. The company will then honor the request if valid. Mostly, the policy will have from $50 to $200 That’s not the case with roadside assistance coverage. Here, the driver is can call the dispatch number associated with their account. All the billing is the arranged between the towing company and the insurance company. The coverage limit on the policy is not exceeded either. If the cost of towing exceeds the set policy limit, the consumer is responsible for the extra costs. The roadside assistance coverage provides coverage that varies between fifteen miles for every disablement and 100 miles.
Sadly, many drivers remain unaware of the differences between towing reimbursement and roadside assistance coverage. You can always get this both types of coverage under towing auto insurance coverage from many insurance companies. Their availability parallels the market share held by the respective insurance company. Word to start up insurance companies, it is unwise to provide towing auto insurance coverage if you have a low percentage of the market. You don’t necessarily need to select your deductibles or limits with the towing auto insurance coverage. The deductible is the amount you offer to pay from your pockets when you make the claim. The insurance company does not pay this amount. In other insurance plans, you are allowed the freedom to set your own deductible. Coverage limit on the other hand is the amount to which the insurance company is willing to compensate. In other insurance plans, you are allowed to determine the limit. In towing auto insurance coverage, this is not all necessary. In the US, response by the insurance company is quick. The response time is usually within 30 to 45 minutes. You, as the driver, can be stuck for a plethora of reasons. These include mechanical failure, dead battery, accident and being stuck in snow, water or mud.
Who is the major beneficiary of the towing auto insurance coverage?
While locking your keys in the car and auto accidents generally do not happen every other day, everyone stands to benefit from towing auto insurance coverage. Towing companies charge for the labor and for every mile the car is towed from the scene of accident to the repair of choice. As such, a towing bill can really dent your wallet especially if more labor was used.
Things to keep in mind - tips
There are several factors that will determine the amount of premiums you will pay. To have your insurance premiums on the lower side, you may want to start by purchasing a used car of safe make and model. If your vehicle is low risk, your insurance policy will be much cheaper. Before purchasing your vehicle, it is recommended that you go ahead and research the vehicle’s history so as to decide the best car to get. This same thing will be repeated by your auto insurance agent, so it pays to do it first. Towing auto insurance coverage is an extra financial shield that a driver will certainly use for a number of times throughout the term of their auto insurance policy. It provides comfort and peace of mind. There those drivers who may choose to reject towing auto insurance coverage because their cars are covered under an extended warranty. It is however advisable to consider the towing auto insurance coverage, whether you are covered by a warranty or not. All in all, towing auto insurance is a cheap cover that every driver should consider having.