Insurance Towing Contracts

Insurance Towing Contracts: What You Need to Know

When it comes to car accidents and breakdowns, having an insurance policy that includes towing coverage can be a lifesaver. However, many people may not realize that their insurance company has towing contracts with specific towing companies. These contracts can impact the towing services you receive and how much you may have to pay out of pocket.

Here are some things to keep in mind when it comes to insurance towing contracts:

1. Your insurance company may have a preferred towing company.

Insurance companies often have contracts with specific towing companies for their policyholders. These preferred towing companies may offer lower rates or other incentives for insurance referrals. It`s important to know which towing company your insurance company recommends so you can call them in case of an emergency.

2. You may have to pay extra if you use a non-preferred towing company.

If you choose to use a towing company that isn`t contracted with your insurance company, you may be responsible for paying any costs that go beyond your coverage limits. This could include higher towing fees, mileage fees, and other charges that the preferred towing companies may not charge.

3. You may have to wait longer for a non-preferred towing company.

Insurance companies work closely with their preferred towing companies and may have guaranteed response times in their contracts. If you choose to use a non-preferred towing company, you may have to wait longer for them to arrive on the scene. This could leave you stranded for longer periods of time, which could be especially problematic if you`re in an unsafe area.

4. You have the right to choose your towing provider.

While insurance companies may have preferred towing companies, you always have the right to choose your own towing provider. However, keep in mind that you may have to pay more for their services if they aren`t contracted with your insurance company. If you do choose a non-preferred towing company, be sure to get a quote for their services before agreeing to anything.

In summary, insurance towing contracts can impact the towing services you receive and how much you may have to pay out of pocket. It`s important to know which towing company your insurance company recommends and understand the potential costs and wait times associated with using a non-preferred towing provider. However, you always have the right to choose your own towing provider.