Towing and Labor Costs Coverage

What is towing and labor costs coverage?

Towing and labor costs coverage is usually a car insurance policy add-on offered by car insurance companies. It covers the costs you incur by having your car towed or having your car worked on by the side of the road. It does not matter whether or not your need for towing or labor was caused by an accident. Towing and labor does not cover the cost of any parts necessary to get your car up and running again, just the labor for installation.

Who needs towing and labor costs coverage?

You do, if you have no other road side assistance coverage. A tire blowout can happen to anyone and any vehicle – not just old cars, but brand new Mercedes' as well.

If you have a membership to an auto club, such as AAA, you may not need towing and labor costs coverage, as it may be provided with your membership. Joining an auto club like AAA is recommended as it provides other services in addition to roadside assistance and towing for about the same cost per year.

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How much towing and labor coverage should you buy?

There are limits on the amount of labor and towing costs that the insurance will cover, which vary by provider. Make sure you ask your insurance carrier for the details of the policy you are interested in, as most offer a variety of choices. You should also find out if there are any restrictions associated with your coverage, such as time limitations or miles for towing in addition to upper dollar limits.

Does towing and labor cover me in any car I'm riding in?

No. Towing and labor costs coverage, unlike many auto club memberships, covers the car specifically and not you, the driver. If you are driving a friend's car and it breaks down, it will be her towing and labor coverage that you will need – or your own auto club membership.

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