Does Roadside Assistance Raise Insurance?

Roadside assistance offers peace of mind for unexpected vehicle issues, from flat tires to dead batteries. Many drivers wonder if utilizing these services will lead to an increase in their car insurance premiums. Understanding how roadside assistance interacts with your insurance policy can clarify this common concern.

How Roadside Assistance Impacts Insurance Premiums

Using roadside assistance services does not directly increase car insurance premiums. These services, which often include towing, jump-starts, tire changes, or fuel delivery, are viewed as service calls rather than claims against your primary insurance policy. Your insurer usually covers the cost of these minor inconveniences through the premium paid for the roadside assistance add-on or membership fee.

Roadside assistance can be obtained as an add-on to your existing car insurance policy or through a separate membership organization. If it’s an add-on to your insurance, it functions as a pre-paid service for minor incidents. Separately purchased memberships operate independently and do not impact your car insurance rates. While infrequent use is unlikely to affect rates, frequent usage, such as multiple calls within a short period, could lead some insurers to consider it an indicator of higher risk, potentially resulting in a rate adjustment or non-renewal of the roadside assistance portion of your policy.

Key Factors Influencing Your Insurance Rates

While roadside assistance does not significantly impact your premiums, numerous other factors play a substantial role in determining your car insurance rates. Your driving record is a primary consideration; incidents like accidents, speeding tickets, or other traffic violations can lead to higher premiums because they signal increased risk to insurers. A clean driving history, conversely, often results in lower costs.

The type of vehicle you drive also influences your rates, with factors such as its make, model, age, safety features, repair costs, and theft rates affecting the premium. Luxury cars and sports cars, for instance, often have higher premiums due to expensive repairs and higher replacement costs. Your location, including your specific zip code, can impact rates due to varying risks of accidents, theft, vandalism, and local weather events.

Personal demographic factors, such as age and driving experience, are also considered, with younger or less experienced drivers often facing higher premiums. Your annual mileage, or how much you drive, can also affect your rates; more miles mean a higher chance of accidents. Your chosen deductibles and coverage limits directly influence your premium, with higher deductibles resulting in lower premiums, and more extensive coverage leading to higher costs. Many insurers use credit-based insurance scores to predict the likelihood of claims, with higher scores correlating with lower premiums.

Understanding Insurance Claims Versus Service Calls

It is important to distinguish between a “service call” and an “insurance claim” when considering their impact on your rates. A service call, such as using roadside assistance for a flat tire or a dead battery, involves minor, pre-arranged services designed for convenience. These incidents are not indicative of a driver’s risk profile or fault in an accident.

An insurance claim, conversely, involves reporting a significant event like an accident, theft, or substantial vehicle damage to your insurer. These claims, especially those where the policyholder is at fault, lead to premium increases because they indicate a higher risk of future financial payouts for the insurer. Roadside assistance usage, being a pre-paid service for minor inconveniences, falls into the “service call” category and does not trigger the same risk assessment as an accident claim. While a tow might be arranged by your insurance company, if it’s not related to an accident or damage, it won’t impact your insurance record like a collision claim.