Companies that offer towing insurance coverage as part of roadside assistance plans include the American Automobile Association, Good Sam Roadside Assistance and BP Motor Club, explains Consumer Reports. Some car manufacturers such as Ford offer towing insurance as part of the warranties on new cars, and some credit card companies such as American Express provide roadside assistance to cardholders. Companies that offer standard auto insurance also provide towing and labor coverage as an addition to standard policies, reports Bankrate.
Companies with roadside assistance plans often provide not only towing insurance, but also vehicle jumpstarting and tire changing, according to Consumer Reports. Some plans include fuel delivery, lock opening and discounts on rental cars and hotels. Consumers should study plan details carefully before enrolling because some companies limit the number of service calls that consumers can make annually, impose surcharges, strictly limit towing destination radius and do not provide service in inclement weather. Most companies charge annual membership fees, although some bill members monthly.
Some insurance companies offer roadside assistance as part of their auto insurance policies but penalize customers if they use the coverage, cautions Consumer Reports. Towing and labor coverage as an add-on to an auto insurance policy covers the expense of the towing and labor to repair the vehicle but not any needed parts, points out Bankrate. The labor coverage typically handles minor repairs but not major jobs. Before consumers shop for towing and labor coverage, they should check to see if their current auto insurance policy already includes it.