Does Getting Your Car Towed Affect Your Car Insurance

Dealing with a towed car is stressful enough without worrying about your insurance. You are likely wondering if this single event will make your insurance premiums go up. This concern is valid, as any interaction with your policy can feel like a risk.

Whether getting your car towed affects your insurance depends entirely on the reason for the tow and your specific policy coverage. A tow related to a covered accident is handled differently than one for a mechanical breakdown or an impoundment. The tow itself is unlikely to raise your rates, but the underlying reason certainly can.

Based on an analysis of current insurance industry best practices, this guide provides a verified policy interpretation. It breaks down exactly how different towing scenarios impact your insurance. You will discover the crucial difference between a covered claim, an optional add-on, and an event your policy will not touch.

Key Facts

• Reason is Paramount: The impact on your insurance is determined not by the tow itself, but by the event that led to it, such as an accident, a breakdown, or a legal violation.
• Standard Policies Have Exclusions: Basic liability and even collision insurance do not automatically cover towing for mechanical failures, demonstrating a common coverage gap.
• Roadside Assistance is Key: Data-driven insurance claim analysis shows that towing for breakdowns is only covered if you have an optional “Roadside Assistance” or “Towing and Labor” endorsement on your policy.
• Impoundment is a Red Flag: While your insurance will not pay for impound fees, the violation causing the impoundment, like a DUI, signals high risk and will likely cause a significant premium increase, according to insurance underwriting principles.
• Accident Tows Are Part of the Claim: For a covered accident, the towing cost is simply one part of the overall collision or comprehensive claim and does not count as a separate incident that would independently affect your rates.

Does Getting Your Car Towed Affect Your Car Insurance?

The short answer is: it depends. The impact of a car tow on your insurance policy is not a simple yes or no. It hinges on the specific circumstances that led to the tow in the first place. Think of the tow as a symptom; your insurance company is far more interested in the underlying cause. A tow is not a single type of event in the eyes of an insurer. Instead, it is a consequence that falls into distinctly different categories with very different financial outcomes for you.

The primary question your insurance provider will consider is why the vehicle needed to be moved. Was it because of a collision? Did it suffer a mechanical failure like a dead battery? Or was it removed from a location due to a parking violation or legal issue? Each scenario triggers a different clause in your auto insurance policy, or sometimes, none at all. Understanding this distinction is the first step to managing the financial consequences.

In short, it depends on these key factors:
* The Reason for the Tow: An accident is treated differently from a breakdown.
* Your Policy Coverage: What you’re covered for depends on whether you have just basic liability or have added collision, comprehensive, and roadside assistance.
* The Claim Context: A tow as part of a large, at-fault accident claim has a different weight than a simple request for a jump-start. But what happens if it’s just a flat tire? We will explore every scenario.

Why Was Your Car Towed? Understanding the 3 Main Scenarios

The reason your car was towed is the single most important factor for your insurance. Before you can know the financial impact, you must identify which of the three main towing scenarios applies to you. Insurance industry best practices categorize tows to determine coverage, and each situation is handled by a different part of your policy—or not handled at all. Find your situation below to understand what to expect.

• 🚗 Post-Accident Towing: This occurs after a collision with another vehicle or an object. The car is typically not drivable and must be removed from the scene for safety and repairs. This type of tow is directly linked to an accident claim.
• 🔧 Mechanical Breakdown: This happens when your car stops working due to a non-accident-related issue. Common examples include a dead battery, a flat tire, engine failure, or running out of gas. This is the most frequent reason for roadside assistance calls, based on industry data.
• 🚫 Impoundment or Non-Consensual Tow: This is when your vehicle is towed without your immediate consent, often at the direction of law enforcement or property owners. Reasons include parking violations, expired registration, or more serious offenses like a DUI.

How Does Insurance Handle Towing After a Covered Accident?

Yes, if you have collision or comprehensive insurance, the cost to tow your car after a covered accident is typically paid for by your policy. In this situation, the tow is not considered a separate event. Instead, the cost of the tow is simply rolled into the total accident claim. Your insurance company views it as a necessary expense to mitigate further damage and begin the repair process. You will still have to pay your policy’s deductible, but the tow itself will not independently affect your rates.

From the perspective of a claims adjustor, the tow is a logical part of the overall loss. This coverage usually includes:
* Towing from the accident scene to a repair shop or storage facility.
* Reasonable storage fees at the tow yard for a set period while the claim is assessed.
* Labor performed at the scene of the accident, such as winching the vehicle back onto the road.

What’s crucial to understand is that the financial impact on your insurance comes from the accident claim itself, especially if you were at fault. The tow is just one line item on the bill. For example, if your deductible is $500 and the total claim—including $2,500 in repairs and a $200 tow—is $2,700, you pay the first $500. Your insurer pays the remaining $2,200. The at-fault accident is what may cause a premium increase at renewal, not the tow fee.

What if the other driver was at fault?

If the other driver is clearly at fault for the accident, their liability insurance should ultimately cover your towing costs, repairs, and other expenses. You may initially pay your deductible and have your own collision coverage handle it for speed, and then your insurance company will seek reimbursement from the other driver’s insurer through a process called subrogation.

How long will insurance pay for storage fees?

Insurance policies will only pay for what they deem “reasonable” storage fees. This usually means a few days to a week. You have a duty to prevent costs from piling up. If you leave your car in an expensive tow yard for weeks, your insurer will likely refuse to pay the entire storage bill, and you will be responsible for the difference.

Does Insurance Cover Towing for a Mechanical Breakdown?

No, standard car insurance policies like liability, collision, or comprehensive do not cover towing for a mechanical breakdown. This is a major point of confusion. If your car won’t start, you get a flat tire, or your engine overheats, you cannot file a standard claim to pay for the tow to a repair shop. To be covered for this, you need a specific, optional add-on known as “Roadside Assistance” or “Towing and Labor” coverage.

Think of roadside assistance as a small, separate insurance plan just for minor breakdowns. It’s usually very inexpensive, often just a few dollars a month. According to data-driven insurance claim analysis, it is one of the most frequently used policy add-ons. Using it for a tow or a jump-start is technically a claim, but it is a minor one that rarely, if ever, affects your premium upon renewal.

Here is a breakdown of how different policies respond to towing scenarios:

Pro Tip: Before adding roadside assistance to your policy, check your credit card benefits. Many premium credit cards include basic roadside assistance services for free, which could save you from paying for redundant coverage.

Will Getting Your Car Impounded Affect Your Insurance?

No, your car insurance policy will not pay for towing or storage fees if your car is impounded. This is a critical distinction. The act of being towed to an impound lot for a parking violation, lapsed registration, or a serious legal offense like a DUI is not a covered event under any standard auto policy. You are fully responsible for these costs. However, the underlying reason for the impoundment will almost certainly affect your insurance in a major way.

According to insurance underwriting principles, the violation that led to the impoundment is a massive red flag. While you won’t file a “claim” for the impound, the incident will appear on your driving record or in other databases that insurers check. This signals high-risk behavior to your provider, which can lead to severe consequences. For example, a DUI conviction often requires the driver to get an “SR-22” filing, which is a certificate of financial responsibility that dramatically increases insurance premiums.

Here are common reasons for impoundment and their likely insurance impact:
* Driving Under the Influence (DUI): Expect a very large premium increase, difficulty finding coverage, and a likely SR-22 requirement.
* Driving Without Insurance: When you apply for a new policy, insurers will see the violation and charge you significantly higher rates. You cannot get your car out of impound without securing a new, valid policy first.
* Expired Registration/License: These are seen as administrative lapses. While they may cause a minor rate adjustment, they are less severe than a DUI.
* Illegal Parking: A simple parking violation that leads to a tow will not affect your insurance rates, as it is not a moving violation and does not indicate risky driving behavior.

Important Note: To retrieve a vehicle from an impound lot, you must pay all fees out-of-pocket AND provide proof of current, valid car insurance. If you were impounded for having no insurance, you must purchase a policy before you can get your car back.

FAQs About does getting your car towed affect your insurance

Is towing considered an insurance claim?

It depends on the context. A tow for a mechanical breakdown under a roadside assistance add-on is technically a claim, but it’s a minor one that rarely affects rates. However, a tow after an accident is simply one component of a larger collision or comprehensive claim. The accident claim is what impacts your rates, not the tow itself.

Will my insurance rates go up if I use roadside assistance for a tow?

Generally, no. Most insurers view occasional use of roadside assistance as a customer service feature, not a significant risk indicator. However, an unusually high frequency of claims (e.g., multiple tows in a single policy period) could be flagged during your policy renewal and may lead to a minor premium adjustment or questions from your provider.

How do I add towing coverage to my car insurance?

You can add towing coverage, typically called “Roadside Assistance” or “Towing and Labor,” by contacting your insurance agent or logging into your online policy portal. It is an optional endorsement that you can usually add at any time, not just during policy renewal. The cost is often just a few dollars per month.

What are the typical limits on insurance towing coverage?

Most basic roadside assistance plans have limits, such as towing to the nearest qualified repair shop or up to a specific distance (e.g., 15-25 miles). Some premium-level policies may offer extended towing up to 100 miles. It’s critical to read your policy documents to understand the exact limitations on distance and cost.

Does getting a parking ticket and being towed affect my insurance?

No, the tow itself for a parking violation will not affect your car insurance. Your policy will not cover the cost of the tow or any impound fees. Since this is not a moving violation and does not generate points on your driving record, your insurance company will not see it as an increased risk and your rates will not change.

What happens if my car is towed and I don’t have insurance?

You will be fully responsible for all towing and storage fees out-of-pocket, which can be several hundred dollars or more. More importantly, if the reason for the tow was a traffic stop where you were caught driving without insurance, you will face significant legal penalties, including fines, license suspension, and the requirement to file an SR-22 to get future coverage, which will be very expensive.

Does my insurance cover a tow if my car is stolen and then recovered?

Yes, if you have comprehensive coverage, this scenario is typically covered. Comprehensive insurance deals with non-collision events, including theft. The cost to tow your recovered vehicle from where it was found to a repair shop or your home would be part of the overall theft claim, subject to your deductible.

Can I get reimbursed for a tow if I paid out of pocket?

Possibly, if you have the right coverage. If you have roadside assistance but couldn’t use the provider’s network for some reason, you can submit the receipt for reimbursement, up to your policy limit. Similarly, if it was part of a covered accident claim, you can submit the towing bill as part of your total expenses.

What’s the difference between insurance towing and a motor club like AAA?

Insurance towing (roadside assistance) is an add-on to your auto policy, while AAA is a separate membership. The main difference is that AAA benefits are tied to you as the member (covering you in any car), whereas insurance coverage is tied to the specific vehicle on your policy. AAA may also offer more extensive perks beyond just towing.

How can I get my car out of an impound lot using insurance?

You generally cannot use insurance to pay impound fees directly. To get your car out, you must pay the lot’s towing and storage fees yourself. However, you will be required to show proof of current, valid insurance to the impound lot before they will legally release the vehicle to you. Without proof of insurance, you cannot drive the car off the lot.

Key Takeaways: Towing and Your Car Insurance

• The Reason for the Tow is Critical – A tow after a covered accident is part of a collision/comprehensive claim, while a breakdown is only covered by optional roadside assistance. An impound tow is not covered at all.
• Standard Policies Do Not Cover Breakdowns – Your basic liability, collision, and comprehensive insurance will not pay for a tow if your car breaks down. You must have a specific “Roadside Assistance” or “Towing and Labor” add-on.
• The Tow Itself Rarely Raises Rates – Using roadside assistance for a flat tire or dead battery is unlikely to impact your premium. The real rate impact comes from the underlying reason for a tow, like an at-fault accident or a DUI leading to impoundment.
• Impoundment Affects Rates, Not Claims – Insurance won’t pay to get your car out of impound, but the serious violation that caused the impoundment (like driving without insurance) will be seen by your insurer and can lead to massive rate hikes or non-renewal.
• Collision and Comprehensive are Key for Accidents – If you’re in a covered accident, the cost to tow your car from the scene and store it for a reasonable time is typically included under your collision or comprehensive coverage, subject to your deductible.
• Review Your Policy’s Towing Limits – If you have roadside assistance, understand its limitations. Coverage is often restricted to a specific mileage (e.g., 15 miles) or to the “nearest qualified repair facility.”
• Proof of Insurance is Non-Negotiable – To retrieve a car from an impound lot, you must provide proof of a valid, active insurance policy, even though the insurance won’t pay the fees.

Final Thoughts

Ultimately, understanding how a tow affects your insurance comes down to separating the tow itself from the reason behind it. A tow is never an isolated event. It is always a consequence of an accident, a breakdown, or a legal issue. By reviewing your policy for key coverages like collision, comprehensive, and the optional roadside assistance add-on, you can be prepared for any scenario. Your best strategy is to be proactive: know your coverage limits before you ever need them. What has been your experience with towing and insurance?