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Does Roadside Assistance Count as a Claim?

roadside assistance count as a claim

Yes, whenever an auto policyholder enacts their roadside assistance coverage, it counts as a claim. However, it doesn’t affect your car insurance rates as much as you think. Roadside assistance provided by your car insurance company is a handy service to have while on the road and is even cheaper than those offered by auto clubs.

The most asked question about roadside assistance is how severe of a claim it is and will it affect car insurance rates by showing up on their record. We’ll tell you right away that a roadside assistance claim, even two, won’t affect your car insurance premiums. You are just using a service for when your car has an issue that you couldn’t have helped, so there’s no fault in the claim. However, it’s when the roadside assistance claims become numerous there may be action taken by your insurance company. Usually, after at least two roadside assistance claims in a year is when your rates may show an increase. Your insurance company may even consider you high-risk.

Why Multiple Roadside Assistance Claims Affect Premiums

A claim means that your insurance provider has to pay out for damages or services on your behalf. The first thing they look at when they receive a claim is severity and fault. That’s why car accidents can cause insurance rates to skyrocket if it is a severe accident that the driver was responsible for. With a roadside assistance claim, there is no fault, and the damage may not be severe. But too many of these claims can suggest to your insurance company that your car is unreliable or needs considerable maintenance, and that can translate as high-risk. This can not only cause your insurer to raise your rates but also question whether or not they want to continue providing you with coverage until you get a new car.

Roadside Assistance is Not Without Its Limits

While roadside assistance is great and all, a notable limitation is that it follows the car and not the driver. So, if you were to experience a breakdown in a friend or family member’s car, you may not be able to call on your roadside assistance coverage. That is why auto clubs like AAA have more expensive roadside assistance rates since it follows the driver. Ask your insurance agent about the limits of your roadside assistance if you’re unsure.

In the market for a new cheap auto insurance plan? Welcome to Insurance Navy, an insurance company that brings affordable car insurance to drivers of all risk levels. Call us today at 888-949-6289 for a free quote or request one online via our website and mobile app.

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