Ensure Blog

What You Need To Know About Towing & Rental Car Coverage

Towing Coverage and Rental Car Coverage

Towing and rental coverageHave you ever gotten a flat, in the middle of an eery, dark highway, fog rolling in, with no sound but the crickets? Maybe not. But we’re sure you would never want that to happen, right? Unfortunately, people get flats all the time. Just like peoples’ engines go all the time. When you’re out in the middle of nowhere, with no one around to help, these instances can seem terrifying. Of course, the most logical course of action would be to call your insurance agent. But say you call, one bar left on your phone, only to realize .. dun dun dun.. your insurance plan doesn’t cover towing. That’s okay, you’ll just get a rental car. But low and behold – your plan doesn’t cover that either. Great, so now you’re stuck in the middle of a nameless town, your agent can’t help you, and you swear you hear a chainsaw in the distance..

This happens a lot more than you might think! People get stranded, and kick themselves for not planning ahead with their car insurance policy. It’s because, when signing up for car insurance, many people tend to skip the “ala carte” items, like towing coverage and rental car coverage. These item are not required by state, so they’re separate from full coverage plans. Unless you have a diligent agent guiding you through the process, singing up for “full” coverage doesn’t really guarantee full coverage at all. You need to be aware there are other options you may want to include in your policy, like those “what if I breakdown in the middle of nowhere?” scenarios.

Let’s go through some general information on towing, labor, and rental car insurance.

Towing & Labor

Towing and labor coverages and limits are different for each carrier that offers towing and labor coverage, and will pay the cost of towing your vehicle to a repair shop when it is unable to be driven and will cover a specified $ amount of necessary labor charges at the  place of the breakdown. This coverage provides reimbursement payment only, so you will have to pay for the service upfront then file a claim with your receipt for reimbursement payment.
Items that may be covered by towing coverage include:

  • Towing (up to a set amount)
  • Tire changing (at site of disablement)
  • Battery jump-start (at site of disablement)


Most car insurance companies will only offer towing and labor coverage if you have physical damage coverage which includes comprehensive and/or collision as part of your policy.

Rental Car Insurance

Rental Car Coverage is another ala carte item. Meaning, its an optional item that can be added to your policy at an additional cost and will vary from carrier to carrier.

Rental car reimbursement coverage typically helps pay for rental car costs when your car’s damages are covered by your comprehensive and collision coverages. For example, you may need to rent a car if your own car has been damaged:

▪       In a car accident.

▪       By theft or vandalism.

▪       By severe weather.

When using rental reimbursement coverage, there are usually 2 different options:


  1. You can rent a car from an approved provider and have them bill your insurance company directly. Contact your car insurance provider to learn more about this option.
  2. You can rent a car from the business of your choice and pay for the cost up front. Then, you will need to submit receipts and a claim form in order to be reimbursed for the cost of the rental vehicle.

There is often a per-day and per-accident limit for rental reimbursement coverage. For example, your rental reimbursement coverage may have a limit of $25 per day or $750 per accident. This means that your insurance policy will only pay $25 per day for a rental vehicle, and that coverage will stop once you’ve hit the $750 limit.

Don’t get stuck because you glossed over these extremely important coverage options! They’re not part of a full coverage plan, but the detriment of not having towing coverage, or rental car coverage, could potentially leave you in a very dangerous situation – stuck. Somewhere totally outside your comfort zone. You may think you don’t drive far enough to require this kind of coverage, but it’s always the one time.. And it’s always the worst time. You don’t have to be stuck. Give one of our Insurance Architects a call at 443.783.5752 today, or click below, and we’ll be glad to ensure your safety everywhere you go.

Ensure My Safety