Ask an Agent
Have a question? We're here to help.
Ask an agent for free

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 one my car went out and my car needed to be towed approx 2 miles back to my home. I thought I have roadside and towing assistance why not use it. The bill was very reasonable at $75. I contacted my insurance company (Liberty Mutual), my first surprise was they ONLY pay $25.00 maximum no matter the cost of the tow. Next surprise was when my insurance premium increased! Contacted insurance and was told if your insurance company pays ANY amount of money even if the cost is 50 cents, the incident will affect your insurance. So, because my insurance paid $25.00 I have had a ding on my insurance for the past 5 years. How can this be?

Oct 24, 2018 Albany, OR

Author profile picture

Ava Lynch

Senior Analyst

  • Licensed Insurance Agent — Property and Casualty

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

Unfortunately, you were given the correct information. Insurance companies base their rates on the risk of having to pay any claim. However, 5 years is usually the longest you should be impacted 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 a different roadside service. At The Zebra, we have an unlimited roadside product that would be separate from your insurance policy and would not impact your rates if you used it. Also, you would be able to remove the roadside coverage from your insurance policy which would lower your premium. You can give us a call at 888-444-8949. Good luck and if you have any other questions, don't hesitate to ask.


Here is our guide to roadside assistance.

Ask an Agent
Have a question? We're here to help.
Ask an agent for free

Insurance is complicated, but it doesn't have to be.

The Zebra searches all of the top insurance companies, in one place, so you can compare the cost and coverage you need to protect your car, home and other property.

Step 1: Tell us a little about yourself

Choose an insurance product and enter your zip code to get started. No phone number required.

Step 2: Sip your coffee while we find the best quotes

Enter the necessary information and then sit back while we find quotes from 100 top insurance carriers.

Icon Fill Form

Step 3: Compare your quotes

Compare quotes side-by-side to find the right match for you, whether it's home, auto, or more.

Icon Agent

Step 4: Let our agents do the hard work for you

Once you pick your policy, our agents are here to get you over the finish line. Then just relax and enjoy your savings.

Compare insurance rates today!

Location pin icon
No junk mail. No spam calls. Free quotes.

Related Questions

Other people are also asking...

An automated security gate hit my door, should I file a claim or get them to pay for the damages?

It's unlikely the company will pay for damages to your vehicle because, as you stated, you misjudged where the gate would open to. In terms of filing a claim with your insurance company, I recommend getting an estimate first to see how much the damage will cost. Especially because this type of…
Dec 10, 2017 Portland, Oregon

Can I use my roadside assistance if I'm in my friends car?

When you have roadside assistance through your insurance company, the service is only available on the vehicle that the coverage is listed. There are other roadside companies that will allow you to use the roadside no matter whose vehicle you are in. Here is more information that compares the diffe…
Feb 20, 2019 Stockton, CA

Will my rates increase if I hit a fence?

If you have liability coverage on your vehicle, which your state requires, the damage will be covered. However, if you file a claim you will most likely suffer a rate increase for what your car insurance company would consider an at-fault accident. In California in 2017, the average rate increase a…
Apr 21, 2018 Modesto, CA

Will requesting roadside assistance impact premium increases in the future?

Unfortunately, using your roadside assistance is considered a claim since you are using coverage on your policy. Most insurance companies will allow you to use your roadside assistance three times. This may be why your insurance rates will go up after the third claim. Since having roadside through …
Apr 5, 2019 Madison, AL