If you pay any attention to automotive news, you’ve probably noticed the uproar over some insurance companies trying to label new-car buyers as high-risk drivers simply for having a pay-how-you-drive auto insurance policy. The insurance industry claims that pay-how-you-drive plans ask their customers to consent to having their driving behavior and habits monitored in return for reduced rates. To do this, companies use telematics to monitor driver behavior – if you drive well, the amount that you pay for your insurance will see a drop. This can be a lifeline for so many.
Breakdown coverage, also known as roadside assistance, is insurance that can help you to pay for auto assistance, such as battery boosts, emergency fuel delivery, or towing. This type of insurance isn’t required to be purchased everywhere, however; many will consider it to be a worthwhile investment.
If you aren’t already covered, don’t worry. We’ll walk you through everything you need to know about this useful car insurance policy.
How Does Road Breakdown Coverage Work?
Road breakdown coverage is optional coverage that you can add to your auto insurance policy. Most auto insurance laws require that if your vehicle needs repairs resulting from a road-related incident, you may have to pay for the repairs out of your own pocket. However, road breakdown coverage is usually inexpensive and can save you hundreds or thousands of dollars in repairs.
Does your vehicle need new tires? What happens when your transmission sputters on the highway? What about that of the four-wheel drive you just bought or the shiny new electric vehicle you’ve been driving? What about breakdowns? Think they’re covered by your auto insurance? Not always.
But it can be significantly helpful. Here’s what you need to know about the pros and cons of breakdown coverage.
What Are the Pros and Cons of Road Breakdown Coverage?
There’s no way to predict when your car will break down. Everyone dreads getting stranded on the side of the road for hours, but when it happens, it’s crucial you have the proper breakdown coverage.
The Pros:
- Peace of Mind
Road breakdowns can be inconvenient and costly, but the peace of mind that comes with roadside assistance is priceless. Whether you travel out of the city for work, have a car with aging parts, or own a classic car, roadside assistance plans can help get you back on the road quickly if you run into car trouble.
- Safety
Most roadside assistance plans cover things like a few common car problems, like dead batteries and flat tires. However, some newer roadside assistance plans now include backup services, such as towing, fuel delivery, and locksmith services. These types of insurance plans are often offered as a part of a larger car insurance policy.
- Liability Coverage
If you own a vehicle, it’s necessary to have auto insurance. But it’s not enough to just have your state-required minimum coverage. Your auto insurance must protect both you and your vehicle from anything that could happen. This can be even more essential if you are a business owner with vehicles under your ownership since you would be responsible for more than one vehicle, and the employees as well. In that case, finding a Specialist HGV Insurance Broker (or a similar professional to suit your needs) can be the way to ensure you get the maximum out of the policy that you choose. While all insurance companies provide liability auto insurance, not all companies offer comprehensive coverage. So, this is something that you should check into before settling with a certain company.
The Cons:
- Expensive
Roadside breakdown coverage can be a good way to guarantee that you’re never stranded far from home, but it comes at a cost. It can be expensive, so you must make sure that you have the sufficient funds to be able to afford this type of plan.
- Limited Hours
One potential downside of road breakdown coverage is limited hours. If your car breaks down during normal working hours, it is very likely that you will be able to receive the help that you need. On the other hand, if your car suffers a problem during the early hours of the morning or late at night, there is a chance that you may not receive the help you have paid for. So, make sure that your insurance company operates during the hours you want it to.
Do You Really Need Roadside Assistance?
No one ever anticipates needing roadside assistance. But things happen. Whether your car breaks down, you’re stuck in a ditch, your battery dies, or you lock your keys inside your vehicle, roadside assistance can help.
It’s important to note that state laws vary regarding whether vehicles must carry these coverages. In general, most states require physical damage coverage to pay for repairs and/or replacement of your vehicle if it is damaged or stolen. Also, most states require liability coverage to help pay for injuries or damages you cause to others. But this burden doesn’t have to be that large when you have road breakdown coverage to help.