Roadside assistance is an incredibly useful thing when you’re stuck with a flat, or your car battery dies unexpectedly. Even better, the roadside assistance plan included with some insurance policies is often less expensive than the plans offered by motor clubs like AAA.
However, attorney Amy Bach, the executive director of the San Francisco-based non-profit agency United Policyholders, believes consumers have a lot of questions about using their roadside assistance options.
For example, Bach says, “People wonder if a claim will eventually go on their [insurance] record.”
And, she says, that worry may be a valid concern. Multiple claims for roadside assistance could cause an car insurance provider to reconsider whether or not it will allow a client to renew a policy, though, she adds that it’s unlikely that “… an insurance company will drop you or raise your rate if you file one or even two [claims] in a year. More than that, especially if they’re in a short period of time, and you’ll probably be watched pretty carefully. According to Bach, “It could cause your insurance company to raise your rates.”
If you’re considering roadside assistance from your car insurer versus a plan from a motor club, you should be aware of the following:
- Some insurance-based plans report roadside assistance claims to ChoicePoint, a Georgia-based company that collects claims data for the insurance industry. Multiple claims can trigger an alert with your insurer.
- Rules vary from state to state on whether -and how – your insurance company is allowed to penalize you for making a roadside insurance claim.
- Frequent roadside assistance claims could make your provider feel that your car isn’t stable.
Bottom line: Ask questions before committing to a roadside assistance plan from anyone, and consider this: the plans that come with insurance policies follow the car, but the plans from AAA and other motor clubs cover you in ANY car.