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

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

Answer
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.

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.

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...

Why did my rates go up when I have a clean driving record?

Thanks for reaching out with your question! Unfortunately, you're not the only one who feels like your car insurance is more expensive than in the past. When your auto insurance premium rises, it doesn't always mean you've done something wrong, though. Let's talk about some pote…
Feb 8, 2024 Hot Springs, AR

What part of my policy covers my car if I hit a pothole?

The resulting damage from hitting a pothole is actually considered an "At Fault" accident and would be covered under the collision portion of your policy. The reason this is the case is because insurance companies expect drivers to operate their vehicles safely and watch for hazards in th…
Feb 29, 2016 Santa Fe, NM

Will insurance cover a leak in my car's sunroof?

Insurance will only cover things that are a result of a loss. So if the leak in the sunroof was caused by a covered peril — like damage from bad weather — this would count towards a comprehensive claim. If the leak was caused by wear-and-tear, your insurance will not cover it.While your first compr…
Nov 20, 2019 Oviedo, FL

Someone hit my car and left a note with their insurance information what do I do next?

First of all, that's great that they were honest and left a note. The next step would be to contact their insurance company and file a claim. If the other driver is at fault then their insurance company should repair any damage to your vehicle. Check out our page on what to expect when filing …
Dec 8, 2018 Camden, SC