What is Towing and Loss of Use?
Towing and Loss of Use are optional auto insurance coverages that help with unexpected expenses after a covered incident. Towing coverage pays for the cost of transporting your vehicle if it becomes undrivable. Loss of Use coverage helps cover the cost of renting a car or using alternative transportation if your vehicle is being repaired due to a covered claim.
Who Needs It
These coverages are helpful for drivers who rely on their vehicles daily. If you don’t have access to a second car or roadside assistance, Towing and Loss of Use coverage can provide peace of mind and reduce out-of-pocket expenses during repairs.
What It Typically Covers
Towing coverage usually includes:
- Emergency towing to a repair shop
- Roadside services like battery jump-start, flat tire change, or lockout assistance
Loss of Use coverage typically includes:
- Rental car reimbursement while your vehicle is in the shop
- Public transportation or rideshare reimbursement (depending on your policy)
Common Exclusions and Limitations
Coverage limits, daily caps, and exclusions vary by insurer and policy. Towing may not cover all roadside services, and Loss of Use may only apply after a covered claim. Luxury vehicle rentals or long-term rentals may not be fully reimbursed. Always check your policy details for specific terms.
Factors That Influence Cost
The cost of adding Towing and Loss of Use coverage depends on several factors:
- Your vehicle type and age
- Your driving history
- Where you live
- Selected coverage limits
Adding these coverages usually results in a small premium increase, but they can offer significant value during unexpected events.
Proof of Insurance and Compliance
While these are optional coverages, your insurer will include them in your proof of insurance if you add them to your policy. Requirements may vary by state, so check with your insurer to ensure compliance with local laws.
How to Get a Quote
Adding Towing and Loss of Use coverage is simple. You can request a quote and customize your policy to meet your needs. Get a quote today and see your coverage options.
Frequently Asked Questions
Is Towing coverage the same as roadside assistance?
No. While they may overlap, towing coverage typically pays for transporting your vehicle, while roadside assistance includes services like battery jumps and tire changes.
Does Loss of Use cover rental cars after all accidents?
Loss of Use usually only applies if the accident is covered by your policy. It won’t apply to maintenance-related issues or excluded events.
Can I use my own rental car company with Loss of Use coverage?
Possibly. Some policies allow you to choose your provider, but reimbursement limits and conditions will still apply. Check your policy or ask your insurer for details.
Do I need both Towing and Loss of Use coverage?
It's up to your needs. Towing helps if your car breaks down, while Loss of Use helps with transportation if your car is being repaired. Many drivers choose both for added peace of mind.
Will these coverages raise my insurance premium?
Adding them may increase your premium slightly, but they can save you money and stress in the event of a breakdown or accident-related repair.
Still have questions? Talk to a local insurance expert.