Towing and labor coverages and limits vary by insurance provider, but it usually pays the cost of towing your car to a repair shop and covers labor charges up to the policy limits. This coverage offers reimbursement payment only. You will have to pay for the costs upfront and later file a claim with your receipt for reimbursement payment.
What does towing and labor coverage include?
- Tire changes
- Lockout help
- Gas delivery
- Oil delivery
The labor cost refers to labor charges you may incur at the scene of the breakdown. The coverage, however, does not cover the cost of any needed parts. For example, towing and labor coverage will jumpstart your car if its runs out of battery, but will not replace a faulty battery.
Many insurance providers do not include towing and labor coverages on basic plans. These services are an add-on, which will increase your insurance premium. This extra coverage typically does not follow you and it only applies to the car that is insured by your insurance company.
Being reimbursed for towing and labor coverage is simple. All you will need is proof of payment to get your money back.
To request towing reimbursement, have the following information ready to file claim:
- Receipt for towing and labor service bill
- Your name
- Vehicle year, make and model
- Home address
- Phone number
- Policy number
If you only have one car available to use, rental reimbursement is an economical and vital option to include in your auto insurance policy. Rental reimbursement policies come with a a per-day and per-accident limit.
It may be tempting to rent a luxury sports car during the time your car is being repaired, but rental reimbursement only allows you to rent a vehicle that is similar to the one that is being repaired in order to be reimbursed.
Rental reimbursement coverage pays for rental car costs if your car has been damaged:
- In a car accident
- By theft or vandalism
- By severe weather
This coverage will not offer reimbursement for rentals that are needed while your regular vehicle is in the shop for normal maintenance or repairs or for recreational purposes.
According to the Insurance Information Institute, on average, a car is in the repair shop for two weeks after an accident. Renting a car for those two weeks can be very expensive. People that find themselves in this situation learn that rental reimbursement is not included in basic policies.
There are two ways to use your rental reimbursement coverage:
- You can call Insurance Navy to find your nearest approved provider. They will be paid directly and avoid any extra paperwork on your behalf.
- You can rent a car from the rental company of your choice and pay for the cost upfront. You will need to submit receipts and fill out other paperwork to be reimbursed for the rental.
Insurance for rental cars
Once you select a rental vehicle of your choice, most rental businesses will ask if you want to purchase additional coverage. You want to make sure you are protected in case of a collision but also do not want to pay for unnecessary coverages. If you choose to buy more coverage for the rental car, the rental reimbursement coverage does not cover the added charges.
To determine if you need to purchase auto insurance from a rental business, review your auto insurance policy and compare that to what the rental place is offering. If your car insurance policy has collision and comprehensive coverage, this coverage transfers to the rental car you are using while your car is replaced.
Do you need more information about towing and rental coverage? Our agents and customer service representatives are here to help. Call us today at 1-888-949-6289 or visit your nearest Insurance Navy location. For your convenience, Insurance Navy is open from 8 a.m. to 9 p.m. CST, 7 days a week.
*Please review your own policy carefully for details on towing and rentals. Towing and rental coverage vary by insurance company