For those who have ever been in an accident or broken down on the side of the road, you know how stressful and frustrating the experience can be. The situation is only worsened when you receive a huge bill for the towing, repair, and rental expanses for when your car was in the auto shop.
We haven’t yet cracked the code on how to prevent you from ever being in an accident or your car from breaking down, our flux capacitor skills are not up to par; however, we do offer optional coverages with our auto insurance to help you recoup some of your towing or rental car costs.
Towing and Labor is insurance for your automobile that covers you for the cost to tow your car to a repair shop when it is undrivable and for labor done at the site of the breakdown, both are up to a specific limit.
Labor can also cover the cost to install and deliver parts needed for your vehicle. Some of these covered situations might include: tire changing, gas/oil/battery services, and if you are locked out of your vehicle.
Rental expense is for when your vehicle is undrivable because of an accident and resulting physical damage. It pays for the cost of a temporary replacement vehicle. This is an optional coverage and not all policies will have it included.
Depending on your insurance company and the severity of the damage, this might mean a rental car. If you prefer not to have a rental, you can opt for reimbursement for Uber/Lyft or train/bus fares.
It is important to note that in most cases, rental expense only kicks in when the accident that made your car undrivable, and it was covered by your insurance policy. Rental reimbursement coverage usually doesn’t have a deductible, but if your car is repaired for physical damage, your collision or comprehensive coverage deductible would apply.
Most insurance policies have two kinds of limits on their rental reimbursement coverages. The first one is a per day limit and it usually starts at around $30a day. The second is a per accident limit which usually starts at $900 and goes up.
So, the coverage in your policy would look like this: 30/900.
This coverage is best for people who don’t have room in their budget for a week or two of the cost to get a rental car or don’t have alternative modes for transportation if their car was to break down.
Do I need Towing if I have “Triple-A”?
No, not really.
Should I get Towing, Labor, and Rental Reimbursement Insurance?
That one is up to you my friend.
My personal opinion is that rental reimbursement is worth it because the cost of a rental car can really add up.
Towing and labor on the other hand… it’s probably easier just to call for a tow than go through your insurance company.
If you need some data to help make that decision, we have included a chart below that gives an example of the costs for rental reimbursement. You can useyour favorite internet search engine to towing costs, Triple-A, and the rental reimbursements below
Florida Specific Rental Reimbursement: