Insurance is all about just in case. Liability insurance is purchased just in case you have an at-fault accident and someone gets hurt or property gets damaged. Collision and comprehensive coverages provide help to the insured just in case the vehicle of the policyholder gets damage in a crash. Some other types of insurance coverages also protect the policyholder—just in case—such as uninsured/under-insured insurance helps the insured to pay the extra expenses, if the liability insurance of other drivers is not sufficient to pay the bills. Similarly, just in case the insured and passengers(family members or friends) got injuries during a car accident, Medpay insurance coverage helps to pay for the treatment of injuries of the insured owner or passengers who suffer in a car accident.

In addition to the above-mentioned coverages, many insurance companies also offer towing and labor coverages just in case your vehicle needs a tow. Note that towing and labor coverage are entirely optional. It costs extra, and it is not mandatory to buy this insurance policy. So why would one purchase this insurance as add-on coverage when there is not any obligation? “Just in case.”

In this blog, we will discuss a little more about the towing and labor coverages and limits in auto insurance and where it can be used.

What is Towing & Labor Cost Coverage?

Towing and labor cost coverage is an optional coverage that one can add to his/her car insurance policy. It typically protects the insured against some of the costs and hassles associated with common roadside disruptions like dead batteries, flat tires, or even an embarrassing lockout. Some insurers may automatically fold this coverage into a full coverage auto insurance policy, so it should be once confirmed from the insurance carrier before purchasing an extra Towing and labor cost coverage.

What does Towing & Labor Cost Coverage include?
If a car insurance policy has towing and labor coverage, then the expenses of towing a vehicle should be covered by this insurance policy. The exact services offered by this type of coverage may vary by company. Typically, towing and labor coverage may cover the following expenses:

  • Towing
  • Tire changes(at the spot where your car broke down or blew a tire)
  • Battery jump starts
  • Lockout assistance
  • Gas or oil delivery

The Labor Portion of the coverage pays for the labor performed at the place of disablement up to the amount shown on the declaration page as applicable to that vehicle. Labor would include the cost of services such as hooking up the tow truck, bringing the insured gas, charging a battery, and replacing a fuel line. It should be noted that it does not include the cost of repair parts if any. Some insurance carriers do not include coverage for locking the keys in the car as they don’t consider locking the keys as a disablement.

Towing and Labor Coverage Limits

A towing and labor coverage includes coverage for all of the above-mentioned situations. But, like all other types of car insurance coverages, this coverage also works under certain limits. The following circumstances should be considered when purchasing a towing and labor insurance coverage:

  • Most of the auto insurance carriers require comprehensive and/or collision coverage before adding this coverage to an auto insurance policy.
  • Towing and labor coverage reimbursements are limited based on the individual policy. One should be cleared by the insurer about reimbursement amounts, the number of claims allowed per year, and the impact of longer-distance tows.
  • This Coverage typically connects to the car that is insured by the insurance company; it doesn’t follow the insured owner, for example, when he/she gets behind the wheel of a friend’s car.