Auto Insurance: Towing and Labor Coverage
Car Insurance Coverage for Auto Accidents and Stranded Cars
While some auto accidents are relatively minor, others find cars that sustain moderate damage and cannot be driven away from the scene of the accident. In this case, the car would have to be towed to the driver’s auto repair shop of choice.
Ordinarily, the driver would be responsible for the full cost of the tow. However, if the driver is covered under towing and labor auto insurance, his or her auto insurance company would pay for towing and any associated labor.
Auto Insurance: What Is Towing and Labor Coverage?
Towing and labor auto insurance covers the full cost of towing should the driver’s car become stranded in an auto accident or other situation.
However, towing and labor auto insurance also covers other costs associated with a stranded vehicle including keys locked in car, gas delivery, and tire changes.
Towing and labor auto insurance is generally offered by the auto insurance company as a selected/declined auto coverage and does not require selection of limits or deductibles.
Auto Insurance: How Does Towing and Labor Coverage Work?
If a driver has elected towing and labor auto insurance and is stranded, the driver calls his or her auto insurance and apprises the auto insurance company of what has happened and the location of the incident. Usually within one-half hour to 45 minutes, help arrives on the scene.
The driver can be stranded for a variety of reasons:
- car stuck in mud, snow, or water
- keys locked in the car
- car broke down on the highway (mechanical failure)
- car damaged in an auto accident and cannot be driven away from the scene
- car ran out of gas
- flat tire
- dead car battery
Depending on the auto insurance company, towing and labor is typically limited to two claims per policy year. At least for the keys locked in car scenario, it is a good idea to always carry a spare car key in case the driver forgets to remove the keys from the ignition.
Auto Insurance: Who Benefits from Towing and Labor Coverage?
While auto accidents and keys locked in the car generally don’t happen every day, everyone can benefit from this optional auto insurance.
Towing companies charge not only for labor, but they also charge per mile from the scene of the accident to the driver’s auto repair shop of choice. Therefore, towing can quickly run up a bill of $100 or more, particularly if additional labor is involved.
Auto Insurance: The Bottom Line on Towing and Labor Coverage
Towing and labor auto insurance is an added financial protection that the driver will most certainly use at least a few times throughout the life of the auto insurance policy.
While those with new cars who may already be covered for roadside assistance under an additional extended warranty can opt to decline towing and labor auto insurance, it is recommended that everyone carry this helpful auto insurance coverage.
See related articles, “Auto Insurance: Why Pay for Rental Reimbursement?," "Auto Accident Hot Sheet Checklist," and "How to File a Claim With Auto Insurance."
Auto Insurance
|
What do you think about this article?
More in Business & Finance
Latest Articles