Vehicle Towing And Your Auto Insurance Rates

Pinpointing the reasoning behind your auto insurance premiums can be a challenge. This is due, in part, to the many factors that are used by insurance companies when setting up any new policy.

Insurance is all about managing risk. A complex formula is used to determine your risk as a driver, and your monthly premium is adjusted based on your risk factor. Many drivers wonder if having their vehicle towed will cause their insurance rates to go up. The short answer to this question- it depends.

Read on to learn more about the relationship between vehicle towing and auto insurance rates.

A Break Down

One of the reasons a vehicle might need to be towed is a serious mechanical malfunction. When your vehicle becomes inoperable, you could find yourself stranded on the side of the road. Many auto insurance companies offer access to roadside assistance so that drivers can have their vehicles towed to safety in these situations.

Although it is true that any time you need to access your insurance benefits you are making a claim, some claims will have no affect on your rates. The use of towing services under your insurer's  roadside assistance policy is one of the claims that shouldn't raise your rates.

The exception to this rule would be if you are excessively using towing services. Multiple tows in a short period of time could cause your insurer to assign you a higher level of risk, which can cause your premiums to increase. 

An Illegal Act

Sometimes, a vehicle is towed against the driver's will. These tows are typically associated with some illegal act committed by the driver. Labeling your actions as being illegal can sound dramatic, so you should recognize that tow-worthy actions range in severity.

Your car could be towed because you parked next to a fire hydrant or in a tow-away zone. These infractions are minor, and your insurance company will usually not be notified of the tow in situations involved parking violations.

There is a caveat, and that caveat is unpaid parking tickets. Since your license could be suspended due to unpaid parking tickets, insurers see these types of parking violations as high-risk and your premiums might go up if you fail to pay all parking tickets you have been issued.

There are several reasons a vehicle can be towed that would affect your insurance rates regardless of whether or not a tow occurred. These infractions include reckless driving, having an expired registration, or driving while under the influence of drugs or alcohol.

Contact an auto insurance service for more help.