The Ugly Truth About Towing Claims
Why would the Insurance Company offer me Towing and Roadside Service Coverage if they don’t want me to use it???
The truth is that they don’t want you to use it, BUT on the rare occasion you do need it, they want to provide you with that nice to have coverage. The key word is RARE! If you are using your Towing Coverage more than 1-2x every 3-5 years, you’re using it too much and it is negatively impacting you.
A towing claim is a claim. It most likely isn’t affecting your rate with your current Auto Insurance Company, but it is going against your eligibility to remain insured with them. An Insurance Company isn’t going to cancel your policy just based on towing claims, but the towing claims might be enough to push you over if you have any other activity on your record. Imagine you had an accident, a glass claim and a ticket, all in the last 3 years. Add in a towing claim and I’m sure the Insurance Company Underwriter is reviewing your account to determine if they want to continue to insure you!
The underwriter’s look at the frequency of claims in addition to the severity of the claims in making their determination. So if you’ve had 3 claims in the last 3 years, even if they’re small claims, you’re pushing the limit on acceptable frequency. If any of those claims were large claims, you’re definitely in the danger zone.
The good news is that those towing claims aren’t affecting your Auto Insurance Premium with your current Insurance Company, but the bad news is that it if you want to switch Insurance Companies, those towing claims ARE affecting the rates and eligibility with other Insurance Companies. If you have 3 or more towing claims in the last 3 years, even if that’s all that you have, you won’t qualify for most Auto Insurance Companies.
The moral of the story is, if you need a tow, use your towing coverage. That’s what it’s there for but use it sparingly. If you are on a first name basis with your tow truck driver, you probably want to get AAA.
From personal experience, I have used the Towing Coverage on my policy. A year or less later, I needed a tow again and I paid it out of my pocket, so I wouldn’t have another towing claim on my insurance record. Then we got AAA until we replaced that vehicle with a more reliable one.
I hope you found this tip helpful. If you’ve like us to review your insurance and provide you with a no-obligation quote, give us a call 585-663-2004.