subject: Towing Coverage on an Auto Insurance Policy [print this page] It is important for consumers to understand the differences between towing reimbursement and roadside assistance coverage on their auto insurance policy. Although many people believe that they are the same, in fact there are several differences between the two.
With most insurance companies, towing reimbursement coverage will be offered to all vehicles that carry physical damage, otherwise known as, comprehensive and collision coverage. With a roadside assistance plan consumers can generally enroll all vehicles regardless of coverage.
Also, there are major differences in the claims process between this coverage. With towing reimbursement coverage the insurance company will reimburse up to the stated limit listed on the policy. The insured would need to pay out for the disablement and can then report the incident to the insurance company and request reimbursement up to the stated limit on the policy. Generally, this policy will have between $50 and $200 coverage available.
With a roadside assistance plan the consumer can call the dispatch phone number associated with the account and all billing will be arranged between the towing company and roadside assistance provider up to the limits on the plan. Coverage available with roadside assistance plans or memberships will vary between 15 miles towing per disablement and 100. The consumer will be required to pay for costs that exceed the limitations of the plan.
Many customers are unaware of the difference between roadside assistance and towing reimbursement coverage. Availability will vary between companies and generally parallels the amount of market share that the insurance company has. In many cases, it would not be financially reasonable for an insurance company with a relatively low percentage of market shares to offer a roadside assistance plan.
Towing Coverage on an Auto Insurance Policy
By: Paul Woodward
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