Does a Towing Claim Increase Insurance?

When a vehicle requires towing, many drivers wonder if this event will impact their car insurance premiums. The relationship between a towing claim and insurance costs is not always straightforward, varying based on the circumstances surrounding the tow. Understanding the distinct scenarios that lead to a vehicle being towed helps clarify potential effects on future insurance rates.

Types of Towing and Insurance Coverage

Vehicles might be towed for several reasons. Towing after a collision, for instance, is usually part of a larger claim and is typically covered under a policy’s collision or comprehensive coverage. Roadside assistance towing addresses non-collision incidents such as mechanical breakdowns, a flat tire, or a dead battery. This service is often an optional add-on to a standard car insurance policy or available through a separate membership. A third scenario involves voluntary towing, where a vehicle owner arranges transport for non-emergency reasons; this type of towing is generally not considered an insurance claim.

Impact of Accident-Related Towing on Premiums

If towing results from an accident, the impact on insurance premiums largely depends on fault. When an insured driver is responsible for an accident, the entire claim, including vehicle damage and towing costs, will likely increase premiums. On average, premiums can rise by 20% to 50% or more after an at-fault accident.

These rate adjustments typically remain on a driver’s record for three to five years. Even if the insured driver is not at fault, some insurers might still increase premiums, though less significantly. This can occur if the insurance company pays for the claim, as any accident involvement may indicate higher future risk.

The premium increase in accident-related towing stems from the underlying accident and the total payout for damages, not just the towing cost. Towing is an ancillary expense within the broader claim for vehicle repair or replacement. Insurers assess the overall risk presented by the accident when calculating future premiums.

Impact of Roadside Assistance Towing on Premiums

Roadside assistance claims, covering incidents like breakdowns or lockouts, are treated differently than accident claims. They are usually not considered “at-fault” incidents and typically do not directly impact core insurance premiums. Roadside assistance is often a low-cost policy add-on.

While occasional use of roadside assistance is unlikely to affect rates, frequent use could lead to an insurer viewing the policyholder as a higher risk. Some companies may take action after two or three claims within a year, potentially leading to a premium increase or reconsideration of the add-on. Frequent calls might suggest an unreliable vehicle or a pattern of higher risk behavior. Using roadside assistance from a third-party provider, like an auto club or credit card benefit, typically has no impact on car insurance rates.

Factors Influencing Overall Car Insurance Costs

Towing claims are only one aspect influencing car insurance premiums. A driver’s history, including past accidents and traffic violations, affects rates. The type of vehicle insured also plays a role, with more expensive or high-performance cars costing more to insure due to higher repair or replacement costs.

Other considerations include the driver’s age and experience, annual mileage, and the geographic location where the vehicle is primarily garaged. The specific coverage levels chosen, selected deductibles, and in some states, a driver’s credit-based insurance score, also contribute to the overall premium calculation. Insurers weigh these elements to assess the likelihood of future claims and determine coverage costs.