Does Getting Your Car Towed Affect Your Insurance? Best Guide

Having your car towed won't necessarily impact your car insurance coverage. Your insurance will only be impacted if the reason for the tow was a violation of your driving record, like a DUI. Let's read on to know more about car insurance and towing of your car.

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Does getting your car towed affect your insurance? Whether by the authorities or due to mechanical issues, having your car towed won’t necessarily impact your insurance.

Being involved in a car accident or dealing with a breakdown can be a stressful experience. One of the many questions that may arise during such events is, “Does getting your car towed affect your insurance?”

Whether it’s because of an accident, mechanical failure, or even an unfortunate incident like running out of gas, towing your car to a repair shop or safe location is a service that many drivers rely on. However, it’s important to understand how this might impact your car insurance policy and your premiums.

In this detailed guide, Beem—your trusted financial companion and #1 Smart Wallet App—will explain everything you need to know about how getting your car towed could affect your car insurance.

We’ll explore when towing is covered, how it may influence your insurance rates, and how you can best manage your finances to stay protected.

Your insurance will only be impacted if the reason for the tow was a violation of your driving record, like a DUI. Find the best auto insurance with Beem that covers damage to your vehicle and other vehicles or property, along with injuries to yourself or others.

What Happens When Your Car Gets Towed?

Does Getting Your Car Towed Affect Your Insurance

Before diving into how towing can affect your car insurance, it’s important to understand the process of getting your car towed.

Towing generally occurs when your car becomes immobilized or unsafe to drive. This could happen for various reasons such as:

Accidents: After a collision, your car may not be drivable, requiring a tow to a repair facility or your home.
Mechanical Failures: If your car breaks down due to engine issues, flat tires, or dead batteries, it might need to be towed to a repair shop.
Weather-Related Issues: Severe weather conditions, such as flooding, hailstorms, or snow, can damage your car or leave it stuck, requiring a tow to safety.
Parking Violations: If your car is parked illegally or obstructing traffic, it might be towed by law enforcement.
Running Out of Gas: Some roadside assistance programs cover towing or fuel delivery when your car runs out of gas.

Now that we have a basic understanding of when towing occurs, let’s dive into the core question: How Towing Affects Your Car Insurance?

How Towing Affects Your Car Insurance

1. Towing and Insurance Coverage

Car insurance policies are not one-size-fits-all, and not all policies automatically cover towing services. Whether or not your car insurance will pay for towing depends on the type of insurance you have, the reason for the tow, and the circumstances surrounding the incident.

Roadside Assistance Coverage

If your car insurance includes roadside assistance coverage, then towing services are typically covered. Roadside assistance is an add-on to your basic policy, which provides emergency services like:

Towing
Battery jump-starts
Flat tire changes
Fuel delivery

Roadside assistance coverage usually applies to mechanical breakdowns, such as when your car has a flat tire or your battery dies. This coverage can also extend to incidents like being locked out of your car or running out of gas. In most cases, your car will be towed to a repair shop or a location of your choice, depending on your policy.

Comprehensive and Collision Coverage

While comprehensive and collision insurance do not directly cover towing services, they can indirectly help in certain situations. Here’s how:

Collision Coverage: If your car is involved in a crash and is no longer drivable, collision coverage can help cover the cost of towing your vehicle to a repair facility. However, collision coverage typically only applies when the accident is the result of a collision with another vehicle or object.
Comprehensive Coverage: If your car is damaged due to non-collision events like vandalism, theft, or a weather-related incident, comprehensive coverage may help cover towing costs to a designated repair shop.

However, both comprehensive and collision coverage only cover towing when the damage to your car is a result of a covered event.

For instance, if your car is towed due to mechanical failure or simply because it broke down, comprehensive or collision insurance would not apply.

Personal Injury Protection (PIP)

Some states may offer Personal Injury Protection (PIP), which primarily covers medical costs in the event of an accident. In some cases, PIP may extend to cover towing services, but this depends on the specifics of your policy and the state in which you reside.

2. Does Towing Affect Your Insurance Rates?

The main concern for many drivers is whether getting their car towed will cause their insurance premiums to increase. While each insurance company has its own policies, getting your car towed will generally not directly affect your rates unless the tow is related to an accident or claim.

Towing Due to an Accident:

If you’re involved in an accident and your car needs to be towed, this could potentially affect your insurance rates. This is because an accident is typically considered an at-fault event, and your insurer will likely cover the costs related to the accident, including towing.

Here’s how an accident-related tow might affect your insurance:

At-Fault Accident: If the accident is determined to be your fault, your insurance premiums may increase at the time of renewal. Towing expenses related to the accident will likely be part of the overall claim, and depending on the severity of the accident and your claims history, your insurance provider may raise your rates to compensate for the higher risk.
Not-At-Fault Accident: If the accident is determined to be caused by another driver, your insurance may still cover the towing fees. However, if the other driver does not have insurance or sufficient coverage, your rates could increase, depending on your state laws and your own insurance policy.

Towing Due to Mechanical Failure:

If your car is towed due to a mechanical failure or another non-accident-related issue, it typically won’t impact your premiums. Mechanical breakdowns or emergency situations are generally not considered claims and are covered by roadside assistance.

However, if you make multiple claims for roadside assistance over time, your insurer might reconsider your policy, especially if you are constantly making claims for towing services.

How to Avoid a Rate Increase After Towing

While getting towed doesn’t necessarily affect your rates, there are a few strategies you can use to help avoid any unwanted premium hikes:

1. Consider Adding Roadside Assistance

By adding roadside assistance coverage to your policy, you can take advantage of towing services without worrying about out-of-pocket expenses or claims that might affect your rates. This coverage is relatively affordable and can provide a wide range of emergency services, including towing.

2. Shop Around for Insurance Quotes

If your premiums go up after an accident-related tow, it may be worth comparing quotes from different insurance companies. Premiums can vary widely, and some insurers offer discounts or more favorable rates for drivers with no accidents or claims.

3. Maintain a Clean Driving Record

One of the best ways to keep your rates low is by maintaining a clean driving record. Avoid accidents, traffic violations, and frequent claims to ensure that your insurance premiums stay manageable. The fewer claims you file, the lower the likelihood of your rates increasing.

Frequently Asked Questions About Towing and Car Insurance

Does Getting Your Car Towed Affect Your Insurance?

No, auto insurance coverage doesn’t get affected by towing. But it might be if you are involved in an accident. So, check with your policy provider to determine what is and is not covered.

Does Towing Fall Under My Auto Insurance Coverage?

Yes, towing falls under a majority of auto insurance coverages. However, it depends on your insurance company. They decide whether to cover the towing service based on the policyholder’s age and driving record.

Does the Reason For Towing Matter for Insurance Purposes?

Yes, it matters. Different insurance policies cover towing, and several factors influence whether the insurance company will cover towing costs.

Are There Limits to the Distance My Insurance Will Cover for Towing Expenses?

The coverage provided by your insurance for towing expenses may vary depending on the specifics of your insurance policy. To comprehend the details of your towing coverage, examine your insurance policy or contact your insurance provider.

Certain policies may impose a specific distance limit for towing services. If your policy includes a roadside assistance add-on, it often includes towing services.

These programs might have their own distance limitations regarding how far they will tow your vehicle.

Can a Towing Incident be Considered a Claim on My Insurance Record?

It depends on the specific circumstances and type of car insurance coverage.

However, the cost of towing may be recorded as a claim if your insurance covers it.

Can I Choose Any Towing Service, or Does My Insurance Company Have Preferred Providers?

It depends on your policy and the kind of towing service that is involved. They cannot specify a provider in the standard insurance policy but can limit their pay.

They usually have contracts with towing companies that cover towing costs.

Will My Insurance Cover Towing if My Car Breaks Down Due to Mechanical Issues?

If you only have a liability policy, car insurance may not cover towing. However, if you have full coverage, it may. Many policies may pay for towing resulting from an accident but may not cover towing due to a mechanical issue or breakdown.

However, some full coverage insurance only pays for towing if you additionally purchase roadside assistance, also known as towing and labor coverage. It can cost around $20 to $25 per year.

Does Beem provide towing coverage?

Beem is your trusted financial companion, but it does not provide car insurance or towing coverage.

However, Beem helps you manage your finances, including helping you track your insurance payments, so you know when your roadside assistance or towing coverage is active.

Does my car insurance automatically cover towing?

No, towing is generally not automatically included in most basic car insurance policies. You will need to add roadside assistance as an optional coverage or include towing in your comprehensive or collision coverage.

Will my insurance premiums increase if I use roadside assistance?

Typically, using roadside assistance will not affect your premiums, but frequent claims could raise your rates. It’s important to use your roadside assistance wisely and avoid filing unnecessary claims.

How much does towing cost without insurance?

Without insurance, towing fees typically range from $75 to $250, depending on the distance, type of vehicle, and location. Some areas may charge even more for specialized services or long-distance towing.

How do I know if I have towing coverage?

Check your car insurance policy or speak with your provider to confirm if towing services are covered. Roadside assistance or towing may be added as a rider to your policy.

Conclusion

Getting your car towed can impact your auto insurance if the incident took place as part of a criminal procedure or a claim filing.

Any incident which appears to be an increased risk to the insurance company can result in increasing your premium. Incidents like a flat tire or a car breakdown shouldn’t affect your car insurance rates.

To ensure you’re adequately covered and avoid unexpected rate increases, Beem recommends reviewing your car insurance policy and adding roadside assistance or towing coverage if necessary.

Stay protected on the road and manage your finances effectively with Beem, your all-in-one financial companion.

Compare car insurance quotes from the top providers with Beem to get the best deal for your budget.

Does Getting Your Car Towed Affect Your Insurance? A Complete Guide For Car Owners