No, liability insurance does not cover towing costs for your own vehicle. Standard auto liability coverage only pays for damage you cause to other people and their property—it does not extend to your car’s towing, storage, or roadside needs. According to Progressive’s coverage guide, liability coverage applies exclusively to other party expenses after an at-fault accident.
This gap exists because of how liability insurance is legally structured under state financial responsibility laws. Every state except New Hampshire requires drivers to carry minimum bodily injury and property damage liability coverage, but these requirements were designed to protect accident victims, not the policyholder’s own vehicle. The negative consequence is stark: if you carry liability-only insurance and your car breaks down or you cause an accident, you pay every cent of your own towing and storage fees out of pocket.
Around 55,000 cars are towed every day in the United States. The average tow costs between $75 and $250—and storage fees can add $20 to $100 per day. Without the right coverage, these costs compound rapidly.
Here’s what you’ll learn in this article:
- 🚗 Exactly which insurance types cover towing—and which don’t
- 💰 How to get the at-fault driver’s insurance to pay your towing costs
- ⚖️ State-specific rules that change who pays (no-fault vs. at-fault states)
- 🛡️ The 3 most common scenarios drivers face and how coverage applies
- ❌ Critical mistakes that lead to denied claims and massive storage bills
The Core Difference Between Liability Insurance and Towing Coverage
Liability insurance exists to protect other people from the financial harm you cause. If you rear-end another driver, your liability coverage pays for their medical bills (bodily injury liability) and their vehicle damage (property damage liability). Your own car? That’s not covered.
A Pro Insurance Group analysis explains this clearly: a standard auto liability policy does not generally cover towing-related expenses. For this coverage, you need a specialty insurance policy or add-on specifically designed to pay for towing costs. Liability policies only pay claims directly related to bodily injuries or property damage resulting from a covered auto accident—caused to others.
This matters because many drivers carry “liability-only” policies to save money. In states with minimum coverage requirements like 25/50/10 (meaning $25,000 per person bodily injury, $50,000 per accident bodily injury, and $10,000 property damage), the premium is cheaper. But you’re gambling that you’ll never need a tow for your vehicle.
| Coverage Type | Covers Your Towing? |
|---|---|
| Bodily Injury Liability | No |
| Property Damage Liability | No |
| Collision Coverage | Yes (after deductible) |
| Comprehensive Coverage | Yes (after deductible) |
| Roadside Assistance Add-On | Yes (policy limits apply) |
When the At-Fault Driver’s Liability Insurance Pays Your Towing
If another driver causes an accident and damages your car, their liability insurance may cover your towing expenses. This is the one scenario where liability coverage pays for towing—but it’s paying for your losses because their policyholder caused them.
According to GEICO’s towing coverage guide, when someone else causes an accident, their liability insurance may cover your towing expenses as part of the damage they caused. The at-fault driver’s property damage liability covers reasonable towing fees to transport your damaged vehicle from the accident scene.
The process works like this: you file a claim with the at-fault driver’s insurance company. Their adjuster investigates. If they accept liability, they reimburse your towing and storage as part of the property damage claim. However, investigation can take days or even weeks—and storage fees keep piling up the entire time.
| Who’s At Fault | Who Pays Your Towing |
|---|---|
| Other driver (100%) | Their liability insurance |
| You (100%) | Your collision/roadside coverage |
| Shared fault (you 40%) | Their insurance pays 60% |
| Uninsured driver | Your UM coverage (if you have it) |
Why Storage Fees Create the Real Financial Emergency
Towing costs are just the beginning. The storage fees are where drivers get financially destroyed. According to attorneys.media analysis, daily storage at tow yard facilities runs $15 to $75 per day, with some urban lots charging far more. One Reddit insurance discussion revealed rates of $400 for the initial tow and $100 per day in storage in some jurisdictions.
Some tow yards charge per calendar day, not per 24-hour period. This means a car arriving at 11:45 PM and picked up at 12:05 AM the next day gets charged for two days of storage. Insurance companies will only pay what they consider “reasonable” storage—if your car sits for three weeks while claims are investigated, you may be stuck paying the excess.
The legal doctrine of “mitigation of damages” applies here. You have a legal obligation to minimize your losses. If you leave your car at an expensive storage lot for weeks without acting, the insurance company can refuse to pay the accumulated fees because you failed to mitigate.
| Fee Type | Typical Range |
|---|---|
| Base Hook-Up/Tow | $75–$200 |
| Per-Mile Charge | $2–$7/mile |
| Daily Storage (Outdoor) | $20–$40 |
| Daily Storage (Indoor) | $35–$75 |
| After-Hours Retrieval | $25–$100 extra |
| Administrative/Processing | $25–$100 |
Collision Coverage: Your Main Protection for Accident Towing
Collision coverage is the insurance type that pays for towing after an accident involving your vehicle. If you crash into another car, hit a guardrail, or collide with any object, collision coverage pays for your vehicle repairs—and typically includes towing to a repair facility.
Lemonade’s insurance guide explains that collision coverage can help cover towing expenses if your car needs to be transported after an accident with another vehicle or stationary object. This includes towing your car to a repair shop for assessment or repairs. The catch: you must pay your deductible first. Collision deductibles usually range between $500 and $1,000.
Here’s a real-world example: you’re rear-ended at a red light and your car is too damaged to drive. The tow to the nearest repair shop costs $100. The repair estimate comes to $3,000. With a $500 deductible, you pay $500 out of pocket, and your insurance covers the remaining $2,600 for both the tow and repairs.
Without collision coverage, there is no safety net. According to Car and Driver, towing is usually not covered by liability-only insurance plans. You should expect to pay upfront for any towing, including after an accident.
Comprehensive Coverage: Protection for Non-Collision Towing
Comprehensive coverage handles damage from events that aren’t collisions: theft, vandalism, fire, flooding, hail, falling objects, and animal strikes. If any of these events leave your vehicle undriveable, comprehensive coverage typically pays for towing.
The Allstate towing guide confirms that if you hit an animal and require a tow, the cost of towing is typically covered as part of the claim—as long as you have comprehensive insurance. This applies to weather damage like flooding or hail, theft recovery and transport, vandalism incidents, and fire damage.
Like collision, comprehensive coverage comes with a deductible. If your deductible is $500 and the tow costs $150 plus $3,000 in hail damage repairs, you pay the $500 deductible and insurance pays the remaining $2,650.
| Event | Coverage That Applies |
|---|---|
| Rear-end collision | Collision |
| Hit a guardrail | Collision |
| Tree falls on car | Comprehensive |
| Car stolen, recovered | Comprehensive |
| Flood damage | Comprehensive |
| Deer strike | Comprehensive |
| Vandalism | Comprehensive |
Roadside Assistance: The Dedicated Towing Add-On
Roadside assistance (sometimes called “towing and labor coverage”) is an optional add-on specifically designed for towing and breakdown situations. Unlike collision or comprehensive, roadside assistance covers non-accident scenarios like mechanical breakdowns, flat tires, dead batteries, and lockouts.
According to Bankrate’s insurance guide, towing and labor coverage can be added to a full coverage auto insurance policy for a small premium. It covers towing, jump starts, gas or oil delivery, tire changes, lockouts, winching, and labor costs associated with emergency roadside repairs. The cost is minimal—often just $14 to $48 per year.
The limitation? Roadside assistance doesn’t cover the cost of parts. If you blow a tire and don’t have a spare, the coverage pays someone to come change the tire but not the cost of a new tire. If you run out of gas, it pays for fuel delivery but often not the fuel itself (though some premium plans include free fuel).
Major Insurer Roadside Assistance Costs
| Insurer | Annual Cost | Key Benefits |
|—|—|
| GEICO | ~$14/year | Tow to nearest shop, no fixed mileage limit |
| Progressive | ~$5/6-months | 15-mile radius towing |
| State Farm | ~$48/year | Tow to nearest facility + 10 miles |
| Allstate | $25–$150/year | 5 service calls per year |
| Erie | ~$5/year | Towing + 20 miles |
AAA vs. Insurance Roadside: Critical Differences You Must Know
AAA membership and insurance-based roadside assistance both cover towing—but with important differences that affect your rates, coverage scope, and long-term costs.
According to AAA membership pricing, the three membership tiers offer drastically different towing distances. Classic ($64.99/year) covers only 5 miles of towing. Plus ($99.99/year) provides 100 miles. Premier ($124.99/year) includes one 200-mile tow per year plus three 100-mile tows.
The biggest difference is claims impact. Using your insurance-based roadside assistance counts as a claim on your policy. Multiple claims can increase premiums or even trigger policy non-renewal. A Reddit discussion about Allstate roadside revealed that companies may non-renew policies after just two or three roadside claims.
AAA operates independently of your auto insurance. Using AAA towing services has zero impact on your insurance rates. For drivers who anticipate needing frequent roadside help (older vehicles, long commutes, frequent road trips), AAA membership protects against premium increases.
| Factor | AAA Membership | Insurance Roadside |
|—|—|
| Cost | $65–$125/year | $5–$48/year |
| Impacts insurance rates? | No | Potentially yes |
| Coverage follows person? | Yes (your membership) | No (your insured vehicle) |
| Maximum towing distance | Up to 200 miles | Typically “nearest shop” |
| Number of service calls | 4 per year | Usually unlimited |
How No-Fault Insurance States Handle Towing Differently
Twelve states operate under no-fault insurance systems where drivers file claims with their own insurance regardless of who caused the accident. This fundamentally changes how towing costs are handled.
According to Liberty Mutual’s no-fault guide, the 12 pure no-fault states are: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania, and Utah. In these states, your Personal Injury Protection (PIP) coverage handles medical expenses and sometimes property damage regardless of fault determination.
The Hudson Injury Firm analysis explains the practical impact: in no-fault states, everyone involved in a car accident is responsible for their own property damage, medical bills, and other losses, regardless of who actually caused the accident. This means towing expenses may be covered by your own insurance company, irrespective of fault.
The benefit? Faster claim processing since fault investigation isn’t required. The downside? You must have adequate coverage on your own policy—you can’t simply rely on the other driver’s liability insurance to pay for your towing after an at-fault collision.
The Three Most Common Towing Scenarios Every Driver Faces
Scenario 1: You Cause an Accident and Your Car Needs Towing
Sarah rear-ends another vehicle at a stoplight. Her car is too damaged to drive. She carries liability-only insurance with 25/50/10 coverage. The police call a tow truck, and Sarah’s car goes to a storage lot.
| Situation | Outcome |
|---|---|
| Sarah’s liability coverage | Pays for the other driver’s repairs |
| Sarah’s towing costs | Sarah pays 100% out of pocket |
| Daily storage fees | Sarah pays 100% ($50/day) |
| After 10 days in storage | Sarah owes $575 (tow + storage) |
Sarah’s liability insurance cannot pay for her own towing because that coverage only applies to damage she causes others. With no collision coverage, no roadside assistance, and no comprehensive coverage, Sarah is fully responsible for her own towing and storage.
Scenario 2: Another Driver Hits You and You Have Liability-Only
Mike is sitting at a red light when a distracted driver rear-ends him. Mike’s car is totaled. Mike has only liability insurance—no collision, no comprehensive.
| Situation | Outcome |
|---|---|
| Other driver’s liability | Should pay Mike’s towing |
| Investigation period | 3–14 days typical |
| Storage during investigation | May or may not be covered |
| If other driver is uninsured | Mike pays everything |
Mike files a claim with the at-fault driver’s insurance. Their adjuster investigates. If they accept liability, they’ll reimburse Mike’s towing and reasonable storage. However, Mike likely must pay the tow yard upfront to retrieve his vehicle—then wait for reimbursement. If the at-fault driver is uninsured or their insurance denies the claim, Mike has no backup coverage to fall back on.
Scenario 3: Your Car Breaks Down Due to Mechanical Failure
Jennifer’s engine fails on the highway. There’s no accident—just mechanical failure. Her car won’t start.
| Coverage Type | Covers This? |
|---|---|
| Liability Insurance | No |
| Collision Coverage | No |
| Comprehensive Coverage | No |
| Roadside Assistance | Yes |
| AAA Membership | Yes |
Neither collision nor comprehensive coverage applies to mechanical breakdowns. Experian’s insurance breakdown confirms this: some providers may require that you have comprehensive or collision coverage on the vehicle before you can add towing coverage, but the collision/comprehensive themselves don’t cover breakdowns.
Jennifer needs roadside assistance or a separate service like AAA. Without it, she pays the full tow cost out of pocket—typically $75 to $250 depending on distance.
State-by-State Minimum Coverage Requirements (2025 Updates)
Several states updated their minimum liability requirements in 2025, affecting what drivers must carry. These minimums apply to liability only—they don’t include towing coverage.
According to Bankrate’s state requirements analysis, California increased minimums from 15/30/5 to 30/60/15 effective January 1, 2025—the first change in 56 years. North Carolina increased to 50/100/50 on July 1, 2025, giving it the highest property damage minimum in the country. Virginia rose to 50/100/25, and Utah to 30/65/25.
These higher limits protect others better but don’t help your own towing situation. Even with the new California minimums, drivers carrying only the required coverage still have zero protection for their own towing costs.
| State | 2025 Minimums (BI/BI/PD) |
|---|---|
| California | 30/60/15 |
| North Carolina | 50/100/50 |
| Virginia | 50/100/25 |
| Utah | 30/65/25 |
| Texas | 30/60/25 |
| New York | 25/50/10 |
| Florida | 25/50/10 (BI now required) |
Comparative Fault: How Shared Blame Affects Your Towing Reimbursement
In comparative fault states, if both drivers share responsibility for an accident, each driver’s recovery is reduced by their percentage of fault. This directly impacts towing reimbursement.
According to a legal analysis from Avvo, if the at-fault party’s insurance company deems you 40% at fault, they will owe to reimburse you 60% of any reasonable towing and storage fees. You pay the charges first, then the insurance company issues a check for 60% of the towing, storage, and estimated damages.
Thirteen states follow pure comparative fault: Alaska, Arizona, California, Florida, Kentucky, Louisiana, Mississippi, Missouri, New Mexico, New York, Rhode Island, South Dakota, and Washington. In these states, you can recover something even if you’re 99% at fault—though your recovery is reduced by your fault percentage.
Most remaining states follow modified comparative fault, which bars recovery entirely if you exceed 50% or 51% fault (depending on the state). Five states—Alabama, Maryland, North Carolina, Virginia, and Washington D.C.—follow contributory negligence, where any fault on your part bars recovery completely.
| Fault System | Recovery if You’re 40% at Fault |
|---|---|
| Pure Comparative | 60% of damages |
| Modified (50% bar) | 60% of damages |
| Modified (51% bar) | 60% of damages |
| Contributory Negligence | $0 |
Towing Someone Else’s Trailer: Liability Coverage Quirks
If you’re towing a trailer—yours or borrowed—liability coverage follows specific rules that many drivers misunderstand.
According to Allstate’s trailer towing guide, many standard auto insurance policies include liability coverage while towing, but only under specific conditions. The trailer must be properly attached to your insured vehicle and must be road-legal (registered, inspected, and not overloaded). Your policy may only cover damage or injury you cause to others—not the trailer itself.
A Reddit insurance discussion revealed the common limit: “The damage to the trailer is covered up to a special limit, usually around $500. However, there is no coverage for cargo.”
Some policies have trailer exclusions that deny coverage entirely while towing. According to WGBC legal analysis, just the attachment of an uninsured trailer to an automobile in violation of a policy’s trailer exclusion was enough to deny recovery of damages in a collision—even though the trailer didn’t contact the other vehicle.
Critical Mistakes That Get Your Towing Claim Denied
Mistake 1: Waiting Too Long to Retrieve Your Vehicle
Insurance companies expect you to mitigate damages. Leaving your car in a $75/day storage lot for three weeks signals you aren’t protecting against loss accumulation. Insurers will cap what they consider “reasonable” storage—often just 3-5 days.
Mistake 2: Assuming Liability Insurance Covers Your Own Tow
Drivers with liability-only coverage are surprised when their insurer says “not covered.” This is the most common misconception. Liability insurance never covers your own vehicle’s towing costs.
Mistake 3: Not Getting Documentation from the Tow Company
Big Will’s Towing reimbursement guide emphasizes that you need a detailed receipt including company name, address, date, time, pickup/drop-off locations, total miles towed, total cost, and reason for the tow. Without this documentation, claims get denied.
Mistake 4: Using Insurance Roadside Too Often
Multiple roadside assistance claims can affect your policy. A GEICO Reddit thread confirmed that excessive use may trigger non-renewal or premium increases. Some insurers strip roadside coverage after 5 uses on the same vehicle in one year.
Mistake 5: Towing Beyond Policy Limits Without Approval
Most policies cover towing to the nearest repair facility. State Farm’s emergency road service pays for towing to the nearest repair facility plus an additional 10 miles. Requesting a 70-mile tow to your preferred mechanic? You’ll pay the difference.
| Mistake | Consequence |
|---|---|
| Leaving car in storage too long | Excess fees denied |
| Assuming liability covers you | Full out-of-pocket cost |
| No documentation | Claim denied entirely |
| Overusing roadside assistance | Policy non-renewal risk |
| Towing beyond coverage limits | Pay overage yourself |
How to File a Towing Reimbursement Claim: Step-by-Step
Step 1: Get a detailed receipt immediately. The towing company must provide company name, contact information, date/time, pickup and drop-off locations, miles towed, total cost, and reason for tow.
Step 2: Contact your insurance company within 24 hours. Confirm whether towing is covered, what documentation is required, and any mileage or cost limits. Ask if they can pay the tow yard directly or if you must pay and seek reimbursement.
Step 3: Complete the reimbursement form. Most insurers have specific forms. Include your policy number, vehicle information, and attach the detailed towing receipt.
Step 4: Submit supporting documentation. Depending on circumstances, you may need photos of damage, a police or accident report, and any correspondence with the towing company.
Step 5: Follow up on your claim. Processing typically takes 1–3 weeks if documentation is complete. Contact your provider to confirm receipt and ask for a timeline.
Step 6: Receive payment. Your insurer may deposit funds directly, mail a check, or apply a credit toward your policy.
Pros and Cons of Different Towing Coverage Options
| Option | Pros | Cons |
|—|—|
| Liability Only | Lowest premium cost | Zero towing coverage for you |
| Collision Coverage | Covers accident towing | Deductible applies ($500–$1,000) |
| Comprehensive | Covers theft/weather towing | Deductible applies; no breakdown coverage |
| Insurance Roadside | Very cheap ($5–$48/year) | May affect rates; limited mileage |
| AAA Membership | No impact on insurance rates | Higher cost ($65–$125/year) |
| Credit Card Roadside | Free with card | Often limited to $75 per incident |
Do’s and Don’ts for Protecting Yourself on Towing Costs
Do’s
- Do carry collision coverage if you can’t afford a surprise towing bill. Collision coverage provides a safety net for at-fault accidents.
- Do add roadside assistance if you drive an older vehicle or commute long distances. The $14–$48 annual cost is far cheaper than one tow.
- Do retrieve your vehicle quickly after an accident. Storage fees accumulate daily, and insurers cap “reasonable” storage.
- Do document everything with photos, receipts, and written records. Claims without documentation get denied.
- Do call your insurer before authorizing a tow if possible. They may dispatch a preferred provider or pay directly.
Don’ts
- Don’t assume someone else’s insurance will pay immediately. Fault investigations take time, and storage fees accumulate while you wait.
- Don’t use insurance roadside assistance casually. Multiple claims can affect your premiums or trigger non-renewal.
- Don’t request long-distance towing without pre-approval. Policies cover transport to the nearest facility, not your preferred mechanic 50 miles away.
- Don’t ignore your policy limits. Know your mileage caps and maximum reimbursement amounts before you need them.
- Don’t leave your car unclaimed for weeks. Some lots begin lien proceedings after 15–21 days, potentially auctioning your vehicle.
Commercial Vehicle and Tow Truck Insurance Requirements
Commercial towing operations face far higher insurance requirements than personal auto policies. The Federal Motor Carrier Safety Administration (FMCSA) requires proof of liability insurance for Operating Authority applications.
According to MKI Wheels industry analysis, the FMCSA auto liability limit is $750,000 for commercial tow trucks. Roadside assistance network minimums range between $25,000 and $150,000, with some reaching as high as $1 million.
DurAmerica’s tow truck guide recommends $1 million in liability for most tow truck services. While there’s no actual state-level requirement in many states, some require $100,000 or $300,000 minimum coverage. The reason: tow trucks often carry expensive vehicles. A single high-value car on the hook could exceed lower coverage limits.
Tow truck operators also need on-hook coverage (covering the vehicle being towed), garage keeper’s liability (covering vehicles in their possession), and cargo coverage (covering items inside towed vehicles).
FAQs
Does liability insurance cover towing for my own car?
No. Liability insurance only pays for damage you cause to others. Your own towing costs require collision, comprehensive, or roadside assistance coverage.
Will the at-fault driver’s insurance pay my towing?
Yes. If another driver caused the accident, their liability insurance should cover your reasonable towing and storage fees as property damage.
Does roadside assistance count as a claim?
Yes. Using insurance-based roadside assistance files a claim on your policy. Multiple claims may increase premiums or trigger non-renewal.
Does comprehensive coverage include towing for breakdowns?
No. Comprehensive covers non-collision damage (theft, weather, animals). Mechanical breakdowns require separate roadside assistance coverage.
Can insurance deny my towing claim?
Yes. Insurers deny claims for excessive storage fees, unauthorized tows, missing documentation, or towing beyond policy limits.
Do impound fees get covered by insurance?
Generally no. According to Progressive’s coverage guide, auto insurance companies won’t cover impound or lot fees from traffic violations.
What’s the average cost of a tow?
$75 to $250 for standard towing, according to Lex’s Towing pricing guide. Costs increase for long distances, after-hours service, and special equipment.
Is AAA better than insurance roadside assistance?
For many drivers, yes. AAA doesn’t affect your insurance rates. Insurance roadside is cheaper but may impact premiums with repeated use.
How long will insurance pay for storage?
Typically 3–7 days. Insurers pay only “reasonable” storage. If you delay retrieving your vehicle, excess storage fees become your responsibility.
Does my auto policy cover trailer towing?
Partially. Liability extends to properly attached trailers for damage you cause to others. Physical damage to the trailer itself typically requires separate coverage.