Towing and labor cost coverage is an optional coverage that pays the cost of towing the vehicle to a repair shop when it is unable to be driven. It also covers a specified amount of necessary labor charges at the place of the breakdown

By adding this coverage to the car insurance policy, insureds can protect themselves against some of the costs and hassles associated with common roadside breakdowns like dead batteries, flat tires, or even an embarrassing lockout. An insured must ask the insurer while buying the policy as some the insurers automatically fold this coverage into their policies and others skip it.

Towing and labor coverage include

The services offered by towing and labor coverage can vary from producer to producer, but most of them may include the following:

  • Towing
  • Tire changes
  • Jump starts
  • Lockout assistance
  • Gas or oil delivery

The “labor cost” part of this coverage refers to labor expenses that may incur at the breakdown location to get the vehicle up and running.
AL3 groups having details of the towing and labor coverage
Towing and Labor coverages are found in three code list categories:

ACVCD: This reference element code is used for Personal lines for the auto coverage codes list.
COVCD: This reference element code is used for the Commercial lines coverage codes list.
HCVCD: This reference element code is used for the Personal lines (except personal auto) coverage codes list.

The above reference element codes for coverages with their AL3 groups are explained below:

6CVA: (Personal Automobile Coverage and Adjustments Group) This group covers the coverages of personal automobiles. ACVCD code list is used by this group. For towing and labor coverages included in the policy the value of the coverage, code must be ‘TL’.

5CVG: (Commercial Lines Coverage Group) this group covers the coverages of commercial lines business. In commercial lines, the business auto LOB(line of business) requires this coverage. It also includes coverages like damage to the vehicles and, collision coverages, comprehensive, etc. it uses the COVCD code list.

6CVH: ( Homeowners and Dwelling Fire Coverage and Adjustments Group) this group coverage are related to personal lines of business except for personal automobiles. In the watercraft line of business, this coverage is used. The value of the coverage code must be ‘TL’.