Towing and rental reimbursement on an auto policy

Towing and labor and rental reimbursement are two optional add-ons to an auto policy. Each pays only up to a set dollar amount. You can find both, and their limits, on your policy's declarations page.

Towing and labor

Towing coverage, sometimes called roadside assistance, pays your costs when the car is disabled. It might pay to tow the car to a repair shop, or for help when you lock the keys inside.

Rental reimbursement

Rental reimbursement pays a limited daily amount for a rental car while yours is being repaired for covered damage. Policies usually limit both the dollar amount and the number of days.

When you file a claim on your own policy, your insurer pays for a rental only if you've added rental reimbursement. Before you pick up a rental, call your insurer to confirm the daily limit and the number of days. Keep the rental agreement and the final receipt for the claim.

The limits

Every coverage on an auto policy has a dollar limit, including towing and rental. The limit is the most the insurer will pay, even if the bill is higher. If the rental costs more per day than your daily limit, you pay the difference. The declarations page, usually the first page of the policy, lists each coverage and its limit. It also lists the policy term and the cars covered, and a lender with a loan on the car is named there as the loss payee.

An annotated example

What to do next

Find the towing and labor limit and the rental reimbursement limits on your declarations page. Save your insurer's claims number in your phone, so you have it when the car won't start.