Take a look at your car insurance policy. You may notice towing and labor insurance coverage. What is it? Do you need it?
Most auto insurance policies initially include this coverage. Some drivers elect to drop it. However, this can be a costly mistake. In an accident, you may need the extra support to help you to get your car into a repair shop. It is important to know what your coverage is in this situation. There are a few key things to know.
Towing and Labor Explained
Towing and labor costs are not extensive. The coverage has its limits. In particular, this type of coverage often applies only when you cannot move the vehicle from the scene of an accident.
For example, if you strike another vehicle, damaging the frame, you cannot move it. You'll need to have the vehicle towed by a professional. Coverage generally includes labor involved in the towing process. This is the cost the tow truck driver will charge you only. It is a misconception to believe this coverage includes any repair costs. It does not include labor to fix the car.
Generally, if you can still drive the vehicle after the accident, this coverage does not apply. It is only available to pay for the cost to tow away the vehicle when you cannot operate it safely.
Who Needs This Coverage?
Most people can benefit from towing and labor coverage. As noted, it is often an inexpensive type of protection. You can generally add the coverage to your policy for relatively little cost. However, some drivers may not need it.
For example, if you are a part of an auto club, that membership may come with towing support. Some credit card companies offer this coverage as well. You can only file a towing and labor claim through one entity. So, if you have towing and labor coverage through another provider, you may not need it on your insurance.
What Will The Insurer Pay?
There are times when your auto insurance policy will cover other labor costs. However, this depends on the details of the policy and the type of accident incurred. For example, if you have collision insurance and hit another vehicle, the policy may help cover the cost of both the repair materials and the labor charges. This is not a separate form of coverage on your policy. That is, labor is not separate from the repairs.
Find out what type of auto insurance you have. Contact your Prestige Insurance Group agent to learn more about towing and labor costs.