Does Roadside Assistance Increase Insurance?

Roadside assistance provides valuable support for drivers facing unexpected vehicle issues on the road. Many wonder if using these services, particularly through their auto insurance provider, could increase premiums. This article explores how roadside assistance interacts with auto insurance policies and its effect on costs.

Understanding Roadside Assistance and Your Policy

Roadside assistance encompasses a range of emergency services designed to help drivers whose vehicles encounter non-accident-related breakdowns. These services commonly include towing, jump-starting a dead battery, changing a flat tire, delivering fuel, and providing lockout services if keys are inaccessible. This support aims to get a vehicle operational or safely transported for repair.

Consumers can obtain roadside assistance through several avenues. It is frequently offered as an optional add-on or endorsement to an existing auto insurance policy, often for a modest annual fee. Alternatively, drivers can acquire coverage through a separate membership with an independent auto club, such as AAA, which offers varying tiers of service and additional benefits. Vehicle manufacturers also often include complimentary roadside assistance as part of new car warranties or service plans. Some credit card companies and mobile phone providers may also offer this benefit to their customers. When part of an insurance policy, roadside assistance is treated as a service agreement, not a traditional claim.

Direct Impact on Insurance Premiums

In most situations, using roadside assistance, even when it is an add-on to an auto insurance policy, does not directly lead to an increase in auto insurance premiums. Insurers typically categorize these events as service requests rather than at-fault accidents or claims for vehicle damage or personal injury. This distinction is important because traditional claims, like those for collisions or liability, involve financial payouts and are more likely to influence future rates.

Insurance companies view roadside assistance as a convenience to help policyholders avoid being stranded. It is not seen as an indicator of increased risk like multiple accident claims. A single or couple of roadside assistance calls per year, such as for a dead battery or flat tire, are unlikely to affect premiums. Roadside assistance services do not involve deductibles, unlike collision or comprehensive claims.

However, an exception exists for excessive or very frequent use of roadside assistance. While there is no universal industry standard for what constitutes “excessive,” some insurers may flag a policy for review if a policyholder makes numerous calls, perhaps more than two or three within a short period, such as a year. This pattern might suggest the vehicle is unreliable or poorly maintained, potentially leading them to consider the policyholder a higher risk. In rare cases, an insurer might increase premiums, limit roadside assistance coverage, or not renew the add-on, though it rarely impacts the entire policy’s premium based solely on occasional usage.

Factors That Influence Auto Insurance Premiums

Understanding factors that influence auto insurance premiums clarifies why roadside assistance usage generally does not impact rates. A driver’s historical driving record, including past accidents, traffic violations, and claims history, is a significant determinant. A history of at-fault accidents or numerous moving violations, like speeding tickets or driving under the influence, signals higher risk and usually results in increased premiums.

The type of vehicle insured also plays a role; factors like its make, model, safety features, repair costs, and theft rates influence the premium. Where a driver lives and parks their vehicle, including zip code, local crime rates, and population density, can affect costs due to varying risks of theft, vandalism, or accidents. Other considerations include driver age and experience, with younger, less experienced drivers typically facing higher rates.

Estimated annual mileage, credit history (where permitted by law), and specific coverage limits and deductibles chosen by the policyholder are integral to premium calculations. These elements form the basis of an insurer’s risk assessment for setting policy costs.

Strategic Considerations for Roadside Assistance

Given that using roadside assistance typically has minimal impact on auto insurance premiums for occasional use, drivers have flexibility in choosing coverage. It is prudent to compare the cost of adding roadside assistance to an existing auto insurance policy, which can be inexpensive, against annual fees for a standalone auto club membership. Auto club memberships, while often more costly, may offer broader benefits like extended towing distances, travel discounts, or coverage for any vehicle the member is driving.

Evaluating personal needs and anticipated frequency of use is a practical step. For individuals with newer, reliable vehicles who rarely experience issues, the insurance add-on might be sufficient. Conversely, those with older vehicles or who travel frequently may benefit from the more comprehensive services offered by a dedicated auto club.

Understanding the specific services and limitations of each provider, such as towing mileage limits or service call limits, is important for adequate coverage. Roadside assistance provides peace of mind and enhances safety without the typical financial penalties of a traditional insurance claim.