Towing and car insurance - is it covered?
The National Insurance Crime Bureau (NICB) says some Hurricane Sandy victims fell prey to tow truck companies that were gouging their rates. This is a disturbing report considering the amount of damage and loss people suffered. The NICB received reports of classic examples of gouging including one towing company that charged an individual $2,150, including a $1,250 ‘recovery’ fee. NICB CEO Joe Wehrle said, “These charges are way out of line with reasonable fees and it’s akin to someone charged $20 to $30 for a gallon of gas just to take advantage of the situation.”
The NICB has even gotten reports that towing companies are being completely dishonest with residents, hooking up cars without consent and claiming the entire street needs to be cleared. They are doing this without authorization from local authorities and people had to then pay the towing company. Insurance companies also received reports from clients, saying that some tow truck companies were going door to door, looking for business, claiming they would contact insurance companies to handle the expenses.
One company took advantage of people’s giving nature, claiming that 50% of the proceeds would go to the American Red Cross. At the time, Wehrle cautioned auto owners to get in touch with their insurance companies before allowing their vehicle to be towed anywhere. Your insurance company can always offer a reliable tow truck company in the wake of a natural disaster or even if you break down on your way home from work.
Is Towing Covered By Your Auto Insurance Policy?
Having coverage to pay for a tow truck may not be something that you think you need when signing up for your policy but it is something that you will be very happy you bought if you ever find yourself stranded. Luckily, most consumers recognize the value of this service and have elected to add it their policy. Some auto insurance companies have taken notice of this popular add on and even begun to add it to some of their base coverage packages. If you are signing up for a new insurance policy or updating the one you currently, be sure to check and see if towing coverage is present.
What Does This Actually Cover?
Having towing coverage will normally cover the three main areas that rack up charged when your car needs to be towed. One of the first areas is the cost of the actual towing service. Tow companies require specialized vehicles that can safely remove and travel with another car and these
advanced machines are not cheap. Most tow truck companies charge some kind of flat fee to perform the service that you need. Sometimes, you may not need to actually have your car towed somewhere. You might be stuck in a ditch with no way to get out. These calls are most popular during inclement weather.
Another area of coverage is the cost that a tow truck company charges each mile it has to drive to reach you as well as return to your to its headquarters. Depending on the charge and location of your car, this can easily be the most expensive part of the bill. If you happen to break down in the middle of nowhere, it can take some time for a tow truck to reach you and the old saying ‘Time is money’ is still relavent. If you do find yourself stranded in the middle of nowhere though, by the time the truck reaches you, it’s probably likely that you will happily pay them any amount to get you back to civilization.
Another thing that coverage can assist you with is any type of roadside assistance that you seek, such as fixing flat tires. You may not have the skills or tools necessary to perform certain functions when your car stops. So who are you going to call? Remember? Your insurance company…so they can recommend a reliable tow truck company. Unless you want to be a possible gouging victim.
How Does Towing Help My Wallet?
You won’t have to pay out of pocket every time you need your car towed. Most reputable towing policies will include at least three or more tows per year. This seems like a lot and it is. Most people find that having their car towed doesn’t happen that often. If it doesn’t seem like a lot, you may want to reconsider the reliability of your current car but towing coverage is a safety net for when those unexpected things happen. Insurance against the unexpected. You will also save when you use roadside assistance because towing policies cover this as well.
Selecting the Best Policy
When you have so wisely chosen to add towing coverage to your new or existing policies, there are some questions you can ask yourself to find the best amount of coverage for your personal situation. The first
question you should ponder is how far do you commute? If you have a fairly short commute and your car doesn’t travel too far from your house, it is unlikely you will rack up a high amount for per mile fees. This way you can go with less coverage.
You should look at where you drive as well. Your proximity to a towing company is going to affect the rate they charge. Is your car new or old? An older car will probably more tows so you might want to opt for a higher amount of towing coverage. On the other hand, if your car new, it is unlikely you will break down often. The last question to consider is whether you can fix minor problems such as a flat tire or jumping your battery. If you can, it’s doubtful you’ll use roadside assistance.
After you have successfully answered all of the questions, be sure to speak with your insurance company about getting the best towing coverage for yourself. If your car ever ends up on the side of the road, you will be happy you added a towing policy.
