Why did Liberty Mutual raise my rate after a $25 towing claim?

I used my Liberty Mutual roadside and towing coverage after a water pump went out in my car. The total bill was a reasonable $75 for a two-mile tow; insurance paid $25. Due to increased rates, I've been "paying" for that small amount for five years!

My first surprise was that LiMu would only pay $25, no matter the cost of the tow. The next surprise was that my insurance premium increased! I contacted my insurance company and was told that if your company pays any money whatsoever, the incident will affect your insurance.

So, because my insurance paid $25, I have had a ding on my insurance for the past five years. How can this be fair? I've got a great driving record and excellent credit. I only used the roadside assistance because I've been paying for it and thought it would be easy; I would not have if I knew my rates would go up.

Insurance companies, including Liberty Mutual, base their rates on the risk of paying any claim, so unfortunately, the information you were given is true. However, five years is usually the longest you should be impacted.

The good news is that 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 assistance service. Let's look at what Liberty Mutual's roadside assistance looks like so you can compare it with other options.

What does Liberty Mutual’s roadside assistance include?

Like most major insurers, Liberty Mutual offers optional roadside assistance to help with common car troubles, especially those that can leave you stranded. Their Towing & Labor Coverage add-on typically includes:

• Towing to the nearest qualified repair shop (up to your policy limit)
• Battery jump-starts
• Flat tire service (as long as you have a usable spare)
• Lockout assistance
• Fuel delivery (you’ll pay for the gas, but not the delivery)
• Winching service if your car is stuck near a public road

Roadside assistance is available 24/7, and you can request help through the Liberty Mutual mobile app, website, or by calling their emergency line. This is generally available from other roadside assistance programs, as well.

A few things to know about Liberty Mutual’s roadside coverage:

• It’s not included automatically. You’ll need to add Towing & Labor Coverage to your policy for a small extra cost.
• Service limits apply. Coverage may cap towing distance or reimbursement amounts depending on your plan and state.
• Fuel isn’t free. Even though the delivery is covered, you’ll still be charged for the actual fuel.

Most large carriers offer a roadside assistance program. There are also standalone options, like becoming an AAA member (you can get roadside coverage without having AAA insurance). The Zebra also partners with FIMC to provide a roadside assistance plan called Auto Hero. This third-party plan can be purchased independently from your car insurance policy and offers features like deductible reimbursement, repair discounts, and more. For more information, call 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.