Towing & Labor Coverage

Towing & Labor is an additional coverage that you can add to your policy. Towing & Labors pays for part or all of the expenses you incur to tow your vehicle to a body shop or mechanic after an accident. The average amounts you can receive for Towing & Labor ranges from $25 all the way up to $150 and more per incident.

The Towing & Labor coverage is designed to only be used after an at-fault accident. However, most insurance companies will pay your towing and labor expenses even if your car has a mechanical breakdown along side the road! The reason for this is that most insurance companies would rather pay $50 or so to tow your vehicle to a nearby body shop than have your vehicle sit by the side of the road where it is very susceptible to both Collision and Comprehensive damages.

Many insurance companies have started upgrading their Towing & Labor coverage to be Roadside Assistance packages that will not only cover for towing, but also for things like locking your keys in the car or you running out of gas alongside the road. This is a fairly new development, but as time goes on, you will probably see less Towing & Labor and more Roadside Assistance packages being offered to drivers.