Towing and Labor Coverage: What's Covered and How Much It Costs
Your car won't start in a parking lot. The mechanic is 10 miles away. A tow truck will cost $150–$250. Do you pay out of pocket, or does your insurance cover it?
Towing and labor coverage is an inexpensive add-on that can save you hundreds in emergency situations. This guide explains what's covered, how it works, and whether you need it.
What Is Towing and Labor Coverage?
Towing and labor coverage (also called "emergency road service" or "towing reimbursement") pays for:
- Towing your disabled vehicle to a repair shop
- Labor costs for minor roadside repairs
- Some policies include additional services
Roadside Assistance Coverage: What's Included and Is It Worth It?
What Towing and Labor Coverage Includes
Standard Coverage
| Service | Typically Covered? | Limit |
|---|---|---|
| Towing to repair shop | Yes | $50–$150 per tow |
| Jump-start | Yes | Labor only |
| Flat tire change | Yes | Labor only (you provide spare) |
| Lockout service | Sometimes | $50–$100 |
| Fuel delivery | Sometimes | Fuel cost not covered |
| Winching | Sometimes | $50–$100 |
What's NOT Covered
- Accident tows — Covered under collision/comprehensive
- Impound fees — Police-ordered tows
- Non-emergency towing — Scheduled transport
- Repair costs — Parts and labor at shop
- Multiple tows for same breakdown
- Towing beyond limit — You pay excess mileage
Towing and Labor vs. Roadside Assistance
| Feature | Towing and Labor | Roadside Assistance |
|---|---|---|
| Cost | $10–$30/year | $40–$120/year |
| Services | Limited (towing, basic labor) | Comprehensive (towing, jump-start, lockout, fuel, etc.) |
| Towing distance | Usually limited | Often longer distances |
| Service calls | Limited | Multiple per year |
| Claims impact | May count as claim | May count as claim |
How Much Does Towing and Labor Coverage Cost?
Average Costs
| Coverage Limit | Annual Cost | Monthly Cost |
|---|---|---|
| $50/tow | $10–$20 | $1–$2 |
| $75/tow | $15–$25 | $1–$2 |
| $100/tow | $20–$35 | $2–$3 |
| $150/tow | $30–$50 | $3–$4 |
Do You Need Towing and Labor Coverage?
You SHOULD Get It If:
- Your car is older — Higher breakdown risk
- You drive long distances — More exposure to breakdowns
- You don't have AAA — No other towing coverage
- You can't afford $200+ for an unexpected tow
You Can SKIP It If:
- You have AAA or other roadside membership
- Your car is new with warranty roadside
- You have credit card roadside benefits
- You have emergency savings for towing
FAQ
Does towing coverage apply after an accident?
No. Towing after an accident is covered under your collision or comprehensive claim. Towing and labor coverage only applies to mechanical breakdowns and non-accident disablement.
Can I use any towing company?
Most policies allow you to choose any licensed towing service. However, using your insurer's preferred provider may streamline reimbursement. Keep all receipts for reimbursement claims.
Is there a waiting period before coverage takes effect?
Some policies have a 24–48 hour waiting period after adding coverage. Check your policy details. Don't wait until your car breaks down to add this coverage.
Does towing coverage work out of state?
Yes, towing and labor coverage typically works nationwide. However, reimbursement limits remain the same regardless of local towing costs.
Can I add towing coverage after I break down?
No. Like all insurance, towing coverage must be in place before the incident. You cannot add coverage retroactively for a current breakdown.
Conclusion
Towing and labor coverage is one of the cheapest add-ons available ($10–$50/year) and can save you from expensive out-of-pocket towing costs. However, if you already have AAA, new car warranty roadside, or credit card benefits, you may have redundant coverage.
Before purchasing:
- Check if you have other towing coverage
- Compare costs vs. potential towing expenses
- Understand your policy's limits and exclusions
- Know how to file a claim (reimbursement vs. direct billing)
Roadside Assistance Coverage: What's Included and Is It Worth It?