When and How to Use Towing Claims on Your Auto Policy

You're driving through Utica when your car suddenly breaks down. It's frustrating, but you're not worried because you've got towing coverage on your auto insurance policy. You've used it before without any issues, so why not use it again? While towing coverage can be a lifesaver in critical situations, it's important to understand when and how to use it wisely.

At the Horan insurance agency, we understand the panic that sets in when you're stranded on the side of the road. We've seen how this moment of crisis can lead to decisions that have long-lasting consequences on your insurance coverage and financial well-being.

As an independent agency working with multiple carriers, we have unique insights into how seemingly small actions can have big impacts on your policy. In this article, we'll explore why making unlimited towing claims is never the right solution, even if you think your insurance will cover it.

By reading to the end, you'll understand how to make informed decisions about using your towing coverage and learn better ways to handle roadside emergencies without jeopardizing your insurance.

Balancing Immediate Needs with Long-Term Insurance Considerations

Picture this: You're standing next to your broken-down car on I-81, just outside of Liverpool. It's getting dark, and the temperature is dropping. In this scenario, using your towing coverage is absolutely the right call. Your safety is paramount, and this is exactly the type of situation your coverage is designed for.

However, it's important to understand that while your policy is there to help you in emergencies, frequent use can have unintended consequences.

The Scope of Towing and Labor Coverage and Its Hidden Costs

Towing coverage, often referred to as towing and labor coverage or roadside assistance, extends beyond just towing services. It typically includes:

1. Lockout assistance if you've locked your keys in the car
2. Jump-starts for dead batteries
3. Fuel delivery if you run out of gas
4. Tire changes in case of a flat

While these services can be lifesavers in a pinch, frequent use can lead to unexpected consequences. It's important to use these services judiciously, reserving them for true emergencies rather than as a regular means of vehicle maintenance.

The Three-Claim Threshold and Its Impact

What many Central New York drivers don't realize is that most insurers start to take notice after three or more towing claims in a five-year period. We've seen cases where carriers refuse to offer towing coverage on new policies for drivers with this claim history.

It's not just about losing your towing coverage. Frequent claims of any type can lead insurers to view you as a high-risk customer. This perception can affect your rates across all types of coverage, not just roadside assistance.

Potential for Abuse and Insurance Fraud

While most drivers use their towing coverage legitimately, we've seen instances of abuse. Some people have used their towing coverage as a substitute for a designated driver, having their car towed home after a night out. This kind of misuse is precisely what makes insurers wary of frequent claims.

Using Your Towing Coverage Wisely

While it's important to use your towing coverage when you truly need it, it shouldn't be relied upon as a regular solution for a frequently failing vehicle. Here are some guidelines for wise usage:

1. True Emergencies: Use your coverage for situations that pose a safety risk, like being stranded on a busy highway or in extreme weather conditions.
2. Unexpected Breakdowns: If your usually reliable vehicle experiences an unexpected issue, don't hesitate to use your coverage.
3. Infrequent Use: Try to limit your towing claims to no more than two or three times in a five-year period.
4. Address Underlying Issues: If you find yourself needing frequent towing, it might be time to address ongoing maintenance issues or consider upgrading to a more reliable vehicle.

Long-Term Fallout from Excessive Towing Claims

When you file multiple towing claims, the consequences can be far-reaching:

1. Policy Non-Renewal: In extreme cases, your insurer might choose not to renew your policy altogether.
2. Limited Options: If you need to switch insurers, your history of frequent claims could make it harder to find adequate coverage at competitive rates.
3. Higher Out-of-Pocket Costs: Without towing coverage, you'll be responsible for the full cost of roadside assistance, which can add up quickly in Central New York's often harsh conditions.

Smart Alternatives for Stranded Drivers in Central New York

While it's important to use your towing coverage when necessary, consider these alternatives for non-emergency situations:

1. Keep a list of trusted local towing companies in your phone. In places like Cicero or Fayetteville, a local service might be quicker and more cost-effective than using your insurance.
2. Invest in a separate roadside assistance plan. These often offer more extensive services without affecting your auto insurance.
3. For minor issues like dead batteries or locked keys, consider calling a friend or family member first. They might be able to help without involving a tow truck, especially if they have jumper cables or a portable jump starter (also known as a battery booster—consider carrying one of these and a spare set of keys as well).
4. If you have an older vehicle prone to breakdowns, consider setting aside a small emergency fund for towing and repairs rather than relying solely on insurance.

Regaining Towing Coverage After Multiple Claims

If you've had multiple towing claims in the past, all isn't lost. Many carriers will reconsider offering towing coverage if you can show that your situation has changed. 

For example, if you've replaced that unreliable 2003 Neon with a new Honda Accord and haven't had any towing claims in the past year, you might be able to get the coverage back.

Maintain Your Insurance by Using Towing Coverage Wisely

Using your insurance wisely is key to maintaining affordable, extensive coverage. By avoiding excessive towing claims, you protect not just your current policy, but your long-term insurability.

Keep in mind, your towing coverage is there to help you in true emergencies. Use it when you need it, but also be mindful of frequency. If you find yourself frequently needing roadside assistance, it might be time to address the root cause—whether that's upgrading to a more reliable vehicle or addressing ongoing maintenance issues.

We're here to help you make informed decisions about your auto insurance. Our team at Horan can work with you to find the balance of coverage and cost, ensuring you're insured for real emergencies without putting your policy at risk.

Click the Get a Quote button below to start a conversation with our knowledgeable team. We'll help you find the coverage to protect you in all of life's unexpected moments—without resorting to risky claim practices.

Learn more about the proper use of your insurance policy by reading: Insurance Claims: Frequency vs. Severity.