Is towing covered by insurance? In many cases, yes, but the answer depends on your policy and the reason your vehicle needs to be towed. Comprehensive insurance often covers towing after an accident, theft, fire, or another insured event, while breakdown towing is commonly covered through roadside assistance rather than standard insurance.
Many drivers only discover the limits of their coverage when they need a tow truck. Understanding how car towing insurance works before an emergency can help you avoid unexpected costs and delays.
Quick Points About Insurance Towing
- Insurance commonly covers car towing, but not in every situation.
- Coverage depends on the nature of the incident, if it’s an insured event.
- Mechanical breakdowns are usually handled through roadside assistance.
- Coverage conditions vary between insurers.
- Checking your policy before you need a tow can prevent unexpected expenses.
Does Insurance Cover Towing?
The most accurate answer is that towing is sometimes covered by insurance.
Most insurers provide towing insurance coverage when a vehicle becomes undrivable because of a covered event. This may include accidents, theft, attempted theft, fire, storm damage, flood damage, or vandalism. In these situations, the insurer may arrange and pay for transportation to a repairer, storage facility, or another approved location.
Mechanical failures are treated differently. If your engine fails, your battery goes flat, or your vehicle develops a fault unrelated to an insured event, the cost of towing is often the driver’s responsibility unless roadside assistance has been added to the policy.
Does Comprehensive Car Insurance Cover Towing?
In many cases, comprehensive car insurance covers towing.
Comprehensive insurance is the highest level of vehicle cover available in Australia. However, insurers differ in what they cover, where the vehicle can be taken, and whether towing is arranged by the insurer or the policyholder.
The table below provides a general guide.
| Situation | Usually Covered by Comprehensive Insurance? |
|---|---|
| Vehicle accident | Yes |
| Theft recovery | Usually |
| Fire damage | Usually |
| Storm or flood damage | Usually |
| Vandalism | Usually |
| Mechanical breakdown | Usually No |
| Flat battery | Usually No |
| Running out of fuel | Usually No |
The only way to know exactly what applies to your policy is to review your Product Disclosure Statement (PDS) or speak directly with your insurer.
Insurance Towing vs Roadside Assistance
Many drivers assume that insurance towing, and roadside assistance are the same service. They are often separate products designed for different situations.
Insurance towing generally applies when a vehicle is damaged by a covered event. Roadside assistance focuses on helping drivers when a vehicle cannot continue due to a mechanical or operational issue.
| Cover Type | Accident Towing | Breakdown Towing | Theft Recovery |
|---|---|---|---|
| Comprehensive Insurance | Usually Covered | Usually Not Covered | Usually Covered |
| Third Party Fire & Theft | Sometimes Covered | Usually Not Covered | Sometimes Covered |
| Third Party Property Damage | Usually Not Covered | Not Covered | Not Covered |
| Roadside Assistance | No | Usually Covered Within Limits | No |
Coverage limits, towing distances, and vehicle restrictions vary between providers.
Common Misunderstandings About Towing Coverage
One of the most common misconceptions is that comprehensive insurance covers every towing situation. In reality, many policies only cover towing when the vehicle has been affected by an insured event.
Another issue we regularly see is confusion between roadside assistance and insurance. Drivers often assume they have breakdown towing included because they hold comprehensive insurance, only to find that roadside assistance was never added to the policy.
It is also common for drivers to arrange towing before speaking with their insurer. While this may be necessary in some circumstances, contacting the insurer first can help clarify whether costs will be covered and whether any conditions apply.
What To Do If Your Vehicle Needs Towing
If your vehicle requires towing, your first step should be identifying why the vehicle cannot be driven. The cause often determines whether insurance towing or roadside assistance applies.
In most situations, the following process can help:
- Move the vehicle to a safe location if possible.
- Check whether the issue is related to an accident, theft, weather event, or mechanical failure.
- Contact your insurer if you believe the incident may be covered.
- Confirm whether towing is included and whether any conditions apply.
- Arrange towing to an approved repairer or preferred destination if permitted.
For drivers involved in accidents in New South Wales, it is also important to read any towing authority documents carefully before signing and confirm where the vehicle will be transported.
How Much Does Towing Cost If Insurance Does Not Cover It?
When towing insurance coverage does not apply, the cost of towing depends on several factors. Distance, vehicle size, accessibility, time of day, and recovery complexity can all influence pricing.
In New South Wales, maximum fees apply to accident towing services for light vehicles. NSW Fair Trading regulates these fees and helps protect motorists from excessive charges following an accident.
| NSW Accident Towing Fee (Light Vehicles) | Maximum Fee (Ex GST) |
|---|---|
| Accident towing work | $308 |
| Recovered stolen vehicle towing | $203 |
| Subsequent tow | $111 |
| Additional distance beyond 10km (Sydney metropolitan area) | $7 per km |
| Additional distance beyond 20km (other areas) | $6 per km |
| Outside business hours surcharge | 20% |
Additional charges may also apply for vehicle storage, salvage work, or specialised recovery services, depending on the circumstances. Before authorising a tow, ask for a clear explanation of any towing, storage, release, recovery, or after-hours charges that may apply.
These regulated fees apply to accident towing of light vehicles in NSW. Breakdown towing, vehicle transport, and other non-accident towing services are generally not subject to the same fee schedule and may vary between providers.
A standard metropolitan tow will generally cost less than a long-distance transport or a vehicle recovery from a difficult location. Because every situation is different, obtaining a quote before arranging a tow is the best way to understand the likely cost.
Should You Add Towing To Your Insurance Policy?
Whether additional towing cover is worthwhile depends on how you use your vehicle.
Drivers who travel long distances, rely on their vehicle for work, own older vehicles, or frequently drive outside metropolitan areas may benefit from roadside assistance or additional towing benefits. For other motorists, the towing benefits already included within their policy may be sufficient.
Reviewing your cover before an emergency occurs can help ensure your policy matches your needs.
Frequently Asked Questions
In many cases, yes. Comprehensive insurance policies commonly cover towing when a vehicle cannot be driven following an accident.
Usually not. Mechanical breakdowns are often excluded and may instead be covered through roadside assistance.
Often, yes. If another driver is responsible for the accident, towing costs may be recoverable through the at-fault driver's insurer.
Generally, no. Issues such as flat batteries and mechanical faults are usually handled through roadside assistance rather than standard insurance policies.
Towing insurance coverage refers to policy benefits that pay for transporting a vehicle following a covered event such as an accident, theft, fire, or storm damage.
This depends on the insurer and policy conditions. Some insurers require towing to an approved repairer, while others provide more flexibility.
Many roadside assistance memberships include towing, although distance limits and conditions often apply.
Some insurers allow reimbursement if the towing was reasonable and related to a covered event. Always confirm with your insurer before arranging the service.
Time To Review Your Policy
Is towing covered by insurance? Often, yes, but only under specific circumstances. While many policies cover towing after accidents and other insured events, mechanical breakdowns are commonly handled through roadside assistance instead.
Before you need a tow truck, take the time to review your policy and understand exactly what is included. If you require towing assistance anywhere in Sydney, Fast Sydney Towing provides professional towing services for breakdowns, accidents, vehicle transport, and roadside emergencies.