Roadside assistance can be a lifesaver when you encounter mechanical issues while driving. But if this service is tied to your insurance policy, you might be wondering whether using it during an emergency may have an impact on your premiums later on. There is no simple answer, but understanding the factors at play will help you choose whether to call for towing service through your policy.   

What Determines Insurance Rates?

A policyholder’s premium depends on various risk factors that may have direct or indirect correlations to losses. Insurance companies have a significant amount of data at their disposal to use in determining premiums. By harnessing information such as car model, vehicle owner’s credit history, and traffic violations, insurers can approximately draw up the risk profile of a policyholder.

Why Should You Keep Road Assistance to a Minimum?

Calling for road assistance once or twice will not significantly affect your insurance rates right away. If you asked for emergency lockout, jump-start, or tire change services, these would fall under towing and labor claims, which are reported to ChoicePoint®. This national database keeps track of claims information to assist insurance companies in processing and double-checking policy applications. While a roadside assistance claim is not considered severe, multiple claims over a short time span may indicate risky behavior or an unstable vehicle.

How Can Towing Affect Your Insurance Rates?

Insurers may consider roadside assistance claims, especially frequent ones, as predictors of risk. These, however, are not the sole factors used, as insurers combine claims information with other data on driving habits and financial history. But if you have a roadside assistance plan with motor clubs like American Automobile Association® (AAA) or Allstate® Motor Club, the emergency services they provide, such as towing and jump-start, won’t be listed on ChoicePoint, which gives you more freedom to use them.

If you’re stuck on the side of the road with a sudden mechanical breakdown, have your car checked by an auto repair expert from Craig’s Towing & Repair in La Crosse, WI. Their team of professionals will have you back up and running in no time. As an AAA-certified tow company, they offer towing services throughout La Crosse, Baraboo, Wisconsin Dells, and Lake Delton. Call (608) 784-1638 or visit their website for more information.