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Why did my rate increase for a $25 towing claim?

I used roadside & towing coverage once, my car was towed 2 miles, bill $75, insurance paid $25. I have been paying for that $25 for 5 years! I have a great driving record, excellent credit etc. A water pump in my car went out and my car needed to be towed approx 2 miles back to my home. I thought I had roadside and towing assistance so why not use it. The bill was very reasonable at $75. I contacted my insurance company (Liberty Mutual), my first surprise was they ONLY paid $25 max no matter the cost of the tow. Next surprise was when my insurance premium increased! Contacted insurance company and was told if your company pays ANY amount of money, the incident will affect your insurance. So, because my insurance paid $25 I have had a ding on my insurance for the past 5 years. How can this be?

Oct 24, 2018 Albany, OR

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Author profile picture

Ava Lynch

Insurance Analyst

Credentials
  • 7+ years of Experience in the Insurance Industry

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior insurance contributor, providing insights and data a…

Unfortunately, you were given the correct information. Insurance companies, including Liberty Mutual, base their rates on the risk of having to pay any claim. However, 5 years is usually the longest you should be impacted. Read more about when and how to file an auto insurance claim.

The good news is, most companies do not charge that much for a towing claim. Since the insurance company didn't pay that much for the claim in the first place, I'd look into getting different roadside service. At The Zebra, we work with multiple companies that offer a roadside product, and if you were to switch your insurance policy this would likely lower your premium. You can give us a call at 888-444-8949 or use our website to get a quote.

Good luck and if you have any other questions, don't hesitate to ask.

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