How Towing Your Car Impacts Your Auto Insurance Rates

If you’ve ever needed roadside assistance to tow your disabled vehicle, you may have worried it could negatively affect your car insurance rates. Most drivers want to avoid anything that may cause their premiums to rise.

The good news is that generally getting your car towed does not directly lead to increased auto insurance costs. However, there are some specific towing situations that could indirectly impact your rates down the road.

In this comprehensive guide, we’ll explain how towing is factored into car insurance, when it can lead to higher premiums, and tips for keeping your rates affordable after a tow

Does Towing Increase Your Insurance Premiums?

In most standard situations, having your car towed does not cause your auto insurance rates to go up right away. Needing a basic tow for a dead battery, flat tire, empty gas tank, etc. is not considered a major risk factor by insurers.

As long as the tow was not related to a serious traffic violation or claim filing, your insurance company has no reason to raise your rates based on towing alone.

Even using your insurer’s included roadside assistance benefit for occasional tows will not lead to price hikes Those minor tows are covered by your existing premiums

So you can rest easy knowing that if you need to call a tow truck once in a while it won’t spike your insurance costs.

When Towing Can Lead to Rate Increases

While towing alone does not affect premiums, there are some specific towing and impound scenarios that could indirectly cause your auto insurance rates to rise over time:

• Towing due to DUI or suspended license – If pulled over for drunk driving or driving on a suspended license your vehicle will likely be towed and impounded. These serious violations will certainly increase your car insurance costs for 3-5 years.

• Towing after an at-fault accident – If you cause an accident and your damaged car is towed, the actual tow won’t increase your rates. But the at-fault accident will, since it makes you a higher insurance risk.

• Excessive roadside assistance usage – If you rely too heavily on your insurer’s included tows and exceed the yearly limit, they may opt to not renew your policy or raise your rates at renewal time. Too many tows may signal an unreliable car.

• Unpaid towing and impound fees – Leaving towing/impound fees unpaid can hurt your credit score. Damaged credit leads to higher car insurance premiums.

So in most scenarios, the tow itself does not directly impact your rates. But the underlying incidents and violations that led to the tow often do cause increases.

Does Impounding Affect Your Car Insurance Rates?

Similar to towing, having your vehicle impounded does not directly cause your auto insurance rates to go up.

However, if your car was impounded due to major driving offenses like DUI, driving with a suspended license, or lack of valid registration, your rates will spike due to those infractions on your record.

And as noted above, abandoning your impounded car at the tow yard and allowing unpaid fees to damage your credit will lead to increased premiums over time.

So while impound alone won’t hike your insurance costs, the reasons your car got impounded likely will.

Tips to Avoid Rate Hikes After Towing

Here are some proactive steps you can take to help minimize the impact on your car insurance rates if your car gets towed:

• Retrieve your impounded car quickly to avoid excessive storage fees that could affect your credit.

• If you get traffic citations related to the tow, take defensive driving courses, hire a lawyer, and take measures to get them removed from your record to reduce points and keep your driving record clean.

• Avoid over-relying on your insurer’s included roadside assistance tows so you don’t exceed the 3-5 yearly tow limit. Only call when truly needed.

• Ask your insurance company about accident forgiveness programs that would prevent your first at-fault claim from hiking your rates.

• Carefully monitor your credit and take measures to improve your score if it gets damaged, since lower scores mean higher premiums.

• Comparison shop quotes if your current insurer does increase your rate after a tow. Other companies may weight the incident less in their pricing algorithms.

Which Other Insurance Policies Can Cover Towing?

Towing and labor coverage is not automatically included in standard auto insurance. You need to add roadside assistance for reimbursement.

But other insurance plans may cover towing costs in certain situations:

• Motorcycle insurance – Many policies automatically bundle towing benefits since bikes tend to break down more often.

• RV insurance – Towing of RVs for up to 100 miles is commonly included in case of breakdown.

• Homeowners/renters insurance – If your car won’t start in your garage/driveway, your home insurance may cover towing fees.

• AAA membership – AAA members can get free limited distance tows, after which mileage fees apply. But beware excessive usage can lead to cancelled membership.

If towing protection is important to you, consider adding roadside assistance to your auto policy or getting a separate roadside assistance plan that includes towing coverage.

Frequently Asked Questions About Towing and Insurance

Here are answers to some common questions drivers have about how towing their car may impact their auto insurance:

What if my legally parked car gets wrongfully towed?

If a tow company mistakenly tows your properly parked vehicle, your car insurance will not cover the fees. This type of wrongful tow also does not affect your insurance rates. You’ll need to resolve the improper tow directly with the towing company.

Can a minor fender bender increase my insurance rates?

A very minor at-fault accident generally won’t hike your insurance premiums, especially if you don’t file a claim. But any moderate to severe at-fault collision that leads to a claim could certainly cause your rates to rise at renewal time since you’d be viewed as higher risk.

What’s the average cost of a tow?

The typical fee for a basic local tow is $75-$100, while long distance tows can cost $200+ or more. Daily storage fees also apply if the car is towed to an impound lot, so act fast to avoid excessive fees.

What documents do I need to retrieve my impounded car?

To get your impounded car back, you’ll usually need a valid driver’s license, vehicle registration, proof of insurance, and payment to cover the towing and storage fees. State and local requirements may vary.

Can I get towing coverage for a trailer/boat with regular auto insurance?

Standard car insurance only covers towing your insured vehicle itself. To get protection for trailers or boats, you’d need to add specialty trailer/boat coverage. Or you can get a cheap standalone roadside assistance plan that includes recreational vehicle towing.

Don’t Worry About Towing Impacting Your Rates

Being stranded with a disabled vehicle and needing to call a tow truck is never an ideal situation. But in most standard cases, it won’t directly cause your auto insurance rates to increase.

As long as the tow wasn’t related to major driving violations or at-fault accident claims, your premiums should remain stable. Don’t hesitate to request help from a tow truck company or your insurer when you really need it.

That said, be proactive about avoiding any knock-on effects like damage to your driving record, credit score, or roadside assistance usage limits that could indirectly increase your insurance costs down the line. Careful driving and financial habits will keep your rates affordable even after a tow.