Towing Insurance

Published: | Updated: June 14, 2016

Definition - What does Towing Insurance mean?

Towing insurance is better known as towing and labor (TL) coverage. It covers a specified amount to have the policyholder's car towed to an auto shop as well as labor charges at the breakdown site.

Insuranceopedia explains Towing Insurance

Besides towing, towing insurance may cover such roadside assistance as tire changing, battery services, lockout services, gas, oil, and water delivery. Exclusions for towing apply to accidents or collisions causing a vehicle breakdown. In this case, collision or comprehensive coverage would kick in to pay towing fees. Although it is typical inexpensive, it may not be necessary. A policyholder may already have it as a credit card perk or find roadside assistance clubs, such as AAA, to be cheaper.

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