Does Car Insurance Cover Towing? A Complete Guide for Canadian Drivers

Car trouble never happens at a convenient time. Whether you’re stuck at an accident scene, dealing with a dead battery, or facing mechanical breakdowns on a winter highway, one question immediately comes to mind:

Does car insurance cover towing?

The answer isn’t always straightforward. Whether insurance covers towing depends on the reason for the tow and specific policy add-ons. Understanding whether your insurance covers towing services is essential to avoid unexpected costs after an accident.

In this guide, we’ll break down:

• Car insurance with roadside assistance
• When towing is covered
• When it isn’t
• The difference between towing and roadside assistance
• How much towing cost in Canada
• How to avoid tow truck scams
• How to file a towing claim properly

While reviewing your car insurance policy is important, many Canadian drivers also choose to complement their coverage with a dedicated roadside assistance membership like CDRA. Instead of relying solely on insurance reimbursement after a tow, CDRA provides direct access to verified towing service providers and emergency roadside assistance when you need it most.

Get peace of mind before your next roadside emergency.
→ Become a CDRA Member Today

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Does Insurance Cover Towing Under a Standard Car Insurance Policy?

Standard car insurance does not automatically include towing services.

Whether your car insurance covers towing depends on the specifics of your policy and whether you have opted for additional roadside assistance coverage. Car insurance in Canada often covers towing if optional Roadside Assistance is added or if Collision/Comprehensive coverage is included.

In simple terms, towing is covered in some cases, but not all.

Most policies break towing into two categories:

1. Accident-related towing
2. Non-accident breakdown towing

The type of coverage you carry makes all the difference.

When Towing Is Covered After an Accident

Towing coverage after an accident largely depends on the type of insurance policy you have and the nature of the incident.

Towing is often covered if the vehicle is inoperable due to a collision, though conditions apply.

Here’s how it works under different coverage types:

Collision Coverage

Collision Coverage usually covers the cost of towing a car to a repair shop after an accident.

Collision coverage may cover the cost of towing after an accident, but this depends on policy limits and the distance of the tow.

If your vehicle is damaged in a collision and cannot be driven, your insurance company will typically cover towing to the nearest service station or approved repair shop.

Comprehensive Coverage

Comprehensive Coverage may cover towing costs if the damage is caused by theft, fire, or vandalism.

For example, if your car is stolen and later recovered but cannot be driven, your comprehensive coverage may include towing to a repair facility.

All Perils Coverage

All Perils Coverage incorporates Collision and Comprehensive protections and typically includes towing for insured losses.

This provides broader peace of mind for unexpected situations.

Ontario Drivers: DCPD

Direct Compensation Property Damage (DCPD) may cover towing costs in Ontario if you are not at fault in an accident.

If another driver causes the collision, your own insurance provider may reimburse your towing service costs under DCPD rules.

However, always check your insurance policy for further details.

Distance Limits and Coverage Caps

Even when towing is covered, limits apply.

Insurers commonly impose distance limits on towing coverage, often capping it at 50 km.

Policies typically cover towing only up to a specific radius, often between 10 km and 50 km.

Coverage caps for towing can limit reimbursement to a specific dollar amount per incident, such as $50 to $100.

If the tow truck must travel beyond the specified distance, you may have to pay the additional cost out of pocket.

Understanding these limits helps avoid surprises.

When Towing Is NOT Covered

There are several situations where insurance cover towing may not apply.

Standard car insurance generally does not cover towing for mechanical breakdowns, dead batteries, or flat tires.

If your car trouble is unrelated to a collision, for example:

• Dead battery
• Flat tire
• Flat tire change needed
• Keys inside locked car doors
• Gas delivery is running out.
• Minor mechanical breakdowns

In this case, you typically need roadside assistance coverage.

Most policies will not tow a car if the driver is not present.

Vehicles used for ride-hailing or taxi services are usually excluded from towing coverage. Moreover, claims may be denied or reimbursement limited if an unauthorized towing company is used, as using a non-preferred towing company can result in claim delays or the denial of your reimbursement.

Most insurance companies have a list of preferred towing companies that are pre-approved and under contract with them.

Before accepting services provided by a towing company, contact your insurance provider if possible.

What Is Car Towing Insurance?

Car towing insurance refers to the part of your auto insurance policy or roadside assistance plan that helps cover the cost of having your vehicle transported when it becomes undrivable. In most standard auto insurance policies, towing is not automatically included but is available through specific coverages like roadside assistance or as part of collision or comprehensive add-ons.

What Is Towing Coverage?

Towing coverage is the component of your insurance or roadside assistance that pays for the cost to tow your vehicle to a safe location, repair shop, or another destination when it cannot be driven.

Whether towing is covered depends on the type of insurance you have:

• Collision Coverage: Often covers towing to a repair shop if your vehicle is inoperable after a collision.
• Comprehensive Coverage: May include towing if the car is damaged by non-collision events, such as theft or vandalism.
• Roadside Assistance Add-On: Typically includes towing for mechanical issues, dead batteries, flat tires, fuel delivery, and other common breakdown situations.

Most insurance providers have limits on how far they will tow your vehicle (often up to 50 km) and may place a dollar cap on reimbursement per incident. If towing exceeds those limits or you use a non-preferred provider without prior authorization, you may be responsible for the extra cost.

Understanding the specifics of your towing coverage helps you avoid surprises when you need to use it.

Does My Car Insurance Cover Breakdowns?

In most cases, standard car insurance does not cover breakdowns caused by mechanical failure, a dead battery, flat tire, or running out of gas.

Breakdowns are generally not treated as accidents, so the collision or comprehensive portions of your policy won’t apply. Instead, coverage for these everyday roadside issues comes from roadside assistance as an optional add-on you can purchase with your auto insurance or through a separate provider.

If you have roadside assistance included:

• You can usually get towing for mechanical breakdowns up to a set distance.
• You may also receive services like jump starts, tire changes, fuel delivery, and lockout assistance.

If you don’t have roadside assistance, you would typically pay out of pocket for these services, which can become costly depending on the situation and distance.

Always check your policy details or speak with your provider to confirm what breakdown situations are covered and whether adding roadside assistance makes sense for your driving needs.

Roadside Assistance vs. Towing: What’s the Difference?

Towing and roadside assistance are often confused, but they are covered differently under insurance policies.

Towing services are typically used when a vehicle cannot be driven, often due to an accident or severe mechanical failure.

Roadside assistance covers a range of services for everyday vehicle issues, such as flat tires, dead batteries, and running out of gas.

Roadside assistance typically includes services like battery boosts, tire changes, fuel delivery, and minor mechanical repairs.

Here’s what roadside assistance covers:

• Battery boosts
• Jump start
• Flat tire change
• Spare tire installation
• Lockout service
• Fuel delivery
• Winching services
• Extrication services
• Gas delivery

Roadside Assistance is an optional add-on for coverage of towing due to mechanical issues, flat tires, or dead batteries. It can be purchased as a roadside assistance insurance add-on or as a standalone service. If you have opted into roadside assistance, it often includes towing, but there could be limits on the distance covered. Roadside assistance plans commonly limit service calls each year, generally to between 3 and 10 calls.

The cost of roadside assistance when included with car insurance can vary widely depending on the insurance provider, the level of coverage, and your location.

Typically, roadside assistance can range from as little as $5 to $15 per month or approximately $50 to $100 per year.

Drivers should ideally have both towing and roadside assistance coverage to be fully protected in various situations.

Insurance Add-On or Dedicated Protection?

While auto insurance may cover towing under certain conditions, it often comes with distance limits, service caps, and reimbursement delays.

A CDRA membership provides immediate roadside assistance without having to interpret complex insurance policy wording.

If you want a simpler, affordable option that prioritizes emergency support, CDRA may be the better choice.

→ Explore CDRA Membership Options

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How Much Does a Tow Truck Cost in Canada?

Tow truck fees can vary significantly across Canada and primarily depend on distance, time of day, weather conditions, location, and the size of your vehicle.

The average tow truck fee across Canada ranges between $75 and $125 for a standard local tow.

Most towing companies charge a base hook-up fee and a per-mile fee after the initial charge.

The average cost of towing can vary based on the distance towed, with per-kilometre rates typically ranging between $2 and $4.

In urban areas, local towing fees can start at $90 to $150, with additional distance charges travelled.

In Ontario, average towing costs can range anywhere between $275 in Toronto and $400 in Brampton.

Factors that may increase towing costs include after-hour services, difficult recovery efforts, and storage and hookup fees. Towing service costs can depend on the type of vehicle, time of day, location, and circumstances, such as being in a hard-to-reach area.

If your car is taken to a storage lot, storage fees may also apply daily until it is released. Without coverage, these unexpected costs can add up quickly.

Towing Costs Add Up Fast — CDRA Helps You Avoid Surprises

Tow truck fees across Canada can range from $75 to over $400, depending on location and distance. Add storage fees, after-hours charges, and recovery costs, and the bill climbs quickly.

Instead of worrying about coverage caps or reimbursement limits, a CDRA roadside assistance membership gives you:

• Pre-screened towing companies
• Transparent pricing
• No unexpected add-on charges
• Faster dispatch during emergencies

Why leave it to chance?
→ Join CDRA and stay protected year-round.

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How to Avoid Tow Truck Scams

Unfortunately, tow truck scams remain a serious issue across Canada, especially at accident scenes.

To protect yourself:

• Know your policy to understand what your car insurance or roadside assistance covers in terms of towing.
• Use trusted services by calling your roadside assistance through your insurance, a credit card, or an auto club for a tow.
• Always ask for identification and confirmation from the tow truck driver, especially if you didn’t call them directly.
• Be wary of tow trucks that arrive unsolicited at an accident scene, as they may be part of a scam.
• Get a clear, itemized invoice detailing all charges before the tow.
• Confirm where your vehicle is being towed and ensure it’s a legitimate business location.
• Don’t be pressured into a tow; you have the right to decide who tows your vehicle and where it goes.
• Document everything by taking pictures of your car before and after the tow and keeping records of all paperwork and receipts.
• Pay with a credit card instead of cash for better tracking and security.
• If something seems off, report the towing company to your insurance, local business bureau, or law enforcement.

Recognizing red flags can save you hundreds, or even thousands, of dollars.

Worried About Tow Truck Scams?

CDRA works with trusted service providers so you don’t have to guess who to call.

Instead of dealing with unsolicited tow trucks, pressure tactics, or unclear invoices, members receive access to verified roadside assistance services with clear service standards.

Avoid red flags. Avoid suspicious activity.
→ Become a CDRA Member for Safer Roadside Support.

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What to Do After Your Car Is Towed

When your vehicle has been towed after an accident or roadside emergency, it’s normal to feel overwhelmed. However, taking the right steps immediately can prevent claim issues and unexpected costs later.

1. Stay Calm at the Accident Scene

After a collision or roadside emergency:

• Confirm where your vehicle is being taken, ideally to the nearest service station or repair shop approved by your insurance company.
• Ask the tow truck driver for their name, company details, and license number.
• Request written confirmation of the destination.

Remember that most insurance companies have a list of preferred towing companies that are pre-approved and under contract with them. Using a non-preferred towing company can result in claim delays or the denial of your reimbursement.

2. Request Proper Documentation

Before your vehicle leaves the accident scene:

• Get a clear, itemized invoice detailing hook-up fees, distance charges, and storage fees.
• Confirm the specified distance included in your coverage.
• Take photos of your vehicle from multiple angles.
• Keep copies of all paperwork.

Document everything by taking pictures of your car before and after the tow and keeping records of all paperwork and receipts.

3. Contact Your Insurance Company Immediately

Next, contact your insurance provider as soon as possible.

A claims adjuster will review:

• Your insurance coverage
• The reason for the tow
• Whether the towing service was authorized
• The distance travelled
• Any additional cost, such as storage lot fees

Some insurers may cover towing if your vehicle is involved in a covered accident, even if you don’t specifically carry roadside assistance coverage.

However, exclusions apply under certain conditions.

Filing a Towing Claim: Step-by-Step

If your insurance covers towing under your policy, follow these steps carefully.

Step 1: Submit Documentation

Provide:

• Police report (if applicable)
• Tow truck invoice
• Photos of vehicle damage
• Claim number
• Repair shop information

Understanding whether your insurance covers towing services is essential to avoid unexpected costs after an accident.

Step 2: Wait for Review

Most insurers process towing claims within 5 to 10 business days, provided documentation is complete.

Coverage caps for towing can limit reimbursement to a specific dollar amount per incident, such as $50 to $100.

Step 3: Confirm Reimbursement

You may receive:

• Direct payment to the towing company
• Reimbursement to you
• Partial reimbursement if distance limits were exceeded

Collision coverage may cover the cost of towing after an accident, but this depends on policy limits and the distance of the tow.

Mistakes That Can Lead to Denied Towing Claims

Even if your insurance policy includes towing, certain mistakes can cause problems.

• Claims may be denied or reimbursement limited if an unauthorized towing company is used.
• Most policies will not tow a car if the driver is not present.
• Vehicles used for ride-hailing or taxi services are usually excluded from towing coverage.
• Policies typically cover towing only up to a specific radius, often between 10 km and 50 km.
• Coverage caps may apply per incident.

Additionally, using an unauthorized towing company at an accident scene may raise red flags.

Know your policy to understand what your car insurance or roadside assistance covers in terms of towing.

Real-World Examples of When Towing Is Covered

Let’s break this down into practical situations Canadian drivers commonly face.

Scenario 1: Collision on a Highway

You’re involved in a collision. The vehicle is undrivable.

Collision Coverage usually covers the cost of towing a car to a repair shop after an accident.

Towing is often covered if the vehicle is inoperable due to a collision, though conditions apply.

Scenario 2: Not-at-Fault Accident in Ontario

If you are not at fault:

Direct Compensation Property Damage (DCPD) may cover towing costs in Ontario if you are not at fault in an accident.

Scenario 3: Car won’t Start Due to Dead Battery

Standard car insurance generally does not cover towing for mechanical breakdowns, dead batteries, or flat tires.

In this case, roadside assistance services would apply instead.

Roadside assistance typically includes services like battery boosts, tire changes, fuel delivery, and minor mechanical repairs.

Scenario 4: Theft Recovery

Comprehensive Coverage may cover towing costs if the damage is caused by theft, fire, or vandalism.

Frequently Asked Questions

Does insurance cover towing for mechanical breakdowns?

Standard car insurance does not automatically include towing services.

Roadside Assistance is an optional add-on for coverage of towing due to mechanical issues, flat tires, or dead batteries.

Does collision coverage include towing?

Collision Coverage usually covers the cost of towing a car to a repair shop after an accident.

However, insurers commonly impose distance limits on towing coverage, often capping it at 50 km.

How much does towing cost in Canada?

The average tow truck fee across Canada ranges between $75 and $125 for a standard local tow.

The average cost of towing can vary based on the distance towed, with per-kilometre rates typically ranging between $2 and $4.

In Ontario, average towing costs can range anywhere between $275 in Toronto and $400 in Brampton.

Factors that may increase towing costs include after-hour services, difficult recovery efforts, and storage and hookup fees.

Can I choose my own towing company?

Most insurance companies have preferred providers.

Using a non-preferred towing company can result in claim delays or the denial of your reimbursement.

Always confirm authorization first.

What Is the Cheapest Way to Tow a Car?

The cheapest way to tow a car depends on why it needs towing.

If your vehicle is involved in a covered accident, collision, or comprehensive coverage may pay for towing within policy limits. For breakdowns like a dead battery or flat tire, roadside assistance is usually more affordable than paying a towing company out of pocket.

Without coverage, towing costs in Canada typically start around $75 to $125 for a short local tow and increase based on distance and location.

What Is the 80/20 Rule for Towing?

The 80/20 rule for towing refers to proper weight distribution when pulling a trailer.

It means roughly 80% of the trailer’s weight should be positioned toward the front (near the hitch) and about 20% toward the rear. This balance helps improve stability, reduce trailer sway, and make towing safer.

Improper weight distribution can increase the risk of loss of control, especially at highway speeds.

The Smarter Way to Handle Roadside Emergencies

While insurance coverage plays a role in protecting your vehicle, there’s another layer of protection many drivers overlook: a dedicated roadside assistance membership.

Unexpected situations like a flat tire, dead battery, lockout service request, or fuel delivery emergency don’t always qualify under collision or comprehensive coverage.

Having a roadside assistance program ensures:

• Immediate access to verified tow truck operators
• Reduced risk of tow truck scams
• Coverage for jump start, winching services, extrication services, and more
• Clear pricing without hidden additional costs
• Faster support during a roadside emergency

Instead of wondering whether insurance covers towing in a specific moment, membership-based assistance provides clarity and peace of mind.

Final Thoughts: Does Car Insurance Cover Towing?

Let’s summarize.

Whether insurance covers towing depends on the reason for the tow and specific policy add-ons.

Car insurance in Canada often covers towing if optional Roadside Assistance is added or if Collision/Comprehensive coverage is included.

Standard car insurance does not automatically include towing services.

Towing coverage after an accident largely depends on the type of insurance policy you have and the nature of the incident.

The key to avoiding surprises is understanding your insurance coverage before you need it.

Review your car insurance policy carefully. Ask your insurance provider about towing coverage limits, specified distance caps, service call limits, and exclusions.

And if you want year-round protection against car trouble, breakdowns, and roadside emergencies — consider a reliable roadside assistance membership that complements your insurance coverage.

Because when you’re stuck on the side of the road, clarity matters more than ever.

Don’t Wait Until You’re Stranded

Whether insurance covers towing depends on many factors, but roadside emergencies don’t wait for policy reviews.

With CDRA, you gain access to trusted towing service providers, roadside assistance coverage, and support when you need it most.

Instead of wondering whether your car insurance policy includes towing, know that you’re covered.

No confusion
No surprise storage fees
No scrambling at the accident scene

Take control of your roadside protection today.