Some companies offer lower limits, such as $25, on towing coverage however typically a person will select the $40 or $50 limit. Depending on the company offering this optional coverage the premiums will vary. It is a limit that can be used multiple times in a policy term.

A typical 6 month premium for a $25 limit is $3, but some carriers have higher limits. It does cover per occurrence, so if you used it more than once it may have some added benefit, but at that premium amount CarInsurance.com would not recommend you purchase it through your policy. We are aware of one company that does charge $23 for 12 months coverage at that limit. I would not elect to purchase that coverage.

Here are some general rules for Towing and/or Rental Reimbursement coverage:

a) Towing and Labor (TL) is an optional coverage.

b) Semi-annual premium varies by carrier starting at $3 with most carriers.

c) Coverage may only be written on cars providing Comprehensive/Collision coverage.

d) Rental Reimbursement Coverage (RREIM) is an optional coverage, providing $10/day reimbursement up to 30 days. Most carriers have $20, $25, $30, $35, $40, $45, $50 a day limits available all of them limited to 30 days of coverage

Towing and road service is an additional item that some insurance companies offer and sell with insurance policies. If you receive an offer that is reasonable and you are interested in acquiring remember to read the towing policy carefully because some insurance companies can cancel your policy if you have too many towing claims, even if you did not have any accidents.

Rental reimbursement is another additional item that goes beyond car insurance. With this coverage, you may receive reimbursement for an auto rental up to a specified limited amount. It applies if you get into an accident with your own vehicle and it can no longer be driven until it is repaired.