Towing Insurance

What Does Towing Insurance Mean?

Towing insurance, commonly referred to as towing and labor (TL) coverage, provides coverage for a specified amount to tow the policyholder’s car to an auto shop, as well as for labor charges at the breakdown site.

Insuranceopedia Explains Towing Insurance

In addition to towing, towing insurance may cover various roadside assistance services, including tire changes, battery services, lockout assistance, and the delivery of gas, oil, or water. However, exclusions typically apply if the vehicle breakdown results from an accident or collision, in which case collision or comprehensive coverage would cover the towing fees. The line between when towing insurance applies and when collision or comprehensive pays out can confuse drivers, so it helps to read up on how comprehensive car insurance compares to collision insurance before deciding if a separate towing add-on is worth it. While towing insurance is generally affordable, it may not always be necessary. Policyholders might already have similar coverage through credit card perks or find that roadside assistance clubs, like AAA, offer a more cost-effective option. Drivers shopping around for a new policy should also check whether towing or roadside help is bundled in for free, since coverage varies a lot between the best car insurance companies.