Can you tow a car that doesn’t have insurance?

Liberty Mutual Tow is a great insurance policy, to begin with, if you are looking to get insured after needing a tow. 

Needing a tow for your vehicle typically means it’s inoperable, even if only for a brief time. However, you will pay towing expenses out of your own pocket without a specific type of car insurance. 

Some insurance companies offer towing as part of policy coverage. For example, Liberty Mutual tow is a component of the company’s roadside assistance program.

Common sense may lead you to believe that you shouldn’t pay for insurance when you can’t use your vehicle. However, that’s not always the case. Before you decide to change or cancel a car insurance policy, you may benefit from learning more about the potential consequences.

Is it legal to tow a car without insurance?

Technically, your vehicle is on the road while in tow. However, it’s not operating independently and doesn’t need insurance coverage.

When your vehicle is in tow, no one can file a liability claim against you if the tow truck driver causes an accident. In that case, the owner of the tow truck would be liable for the damages suffered by the other vehicle in the accident. Similarly, you could potentially file a claim with the tow company’s insurance if your car sustained damages during the tow.

Should I insure a towed vehicle for potential damages?

In most cases, a vehicle needs a tow following a wreck or a breakdown on the road. When that happens, your car should have the minimum insurance coverage required by state law. However, a vehicle not in use doesn’t need insurance coverage and would therefore have no insurance during a tow.

If you have concerns about potential damages during the towing of your uninsured vehicle, you can purchase insurance to protect your car during a tow. You would need to search for the right car insurance and compare quotes from multiple companies to find the policy you need.

Some towing companies allow you to purchase coverage directly from them for the duration of the tow. However, you’ll likely be liable for damages if you decline that coverage.

When do I need to file a liability claim for a tow?

To file a liability claim, you need to determine who is responsible for the damages. For example, you wouldn’t file a claim with the tow company’s insurance for damages incurred in a wreck before the tow. Instead, you would file a claim with the other driver’s insurance.

Additionally, as the person filing the claim, the responsibility for proving fault falls on you. You may have a hard time proving that the tow truck driver is at fault for damage to your vehicle. Consider taking pictures of your vehicle before it’s hooked up to the tow truck as proof of its condition if you need to file a claim.

Can I cancel insurance when my vehicle is inoperable?

You could technically cancel your insurance coverage while your car isn’t working correctly or isn’t in use, regardless of the company.

Before you choose to cancel car insurance, you should consider the potential effects. For example, if you plan to use the car again in the future, some companies allow you to pause or suspend all or part of your policy until you begin driving it again.

What are the consequences of canceling insurance?

If your vehicle needs repairs, you could technically cancel or pause your insurance policy while it’s inoperable. However, you shouldn’t drive your vehicle off the lot after repairs without the minimum amount of required insurance. 

Some possible penalties for driving without insurance include:

• Suspension of your driver’s license and license plates
• Impoundment of your vehicle
• Fines for driving or parking while uninsured
• Reinstatement fees

Most states mandate a minimum of liability coverage because of the type of protection it provides. Liability insurance covers the property and bodily damages to the other driver and vehicle when you’re at fault for an accident. 

You can calculate the cost of insurance based on the amount of coverage you purchase. If you are caught driving without car insurance and fail to get the proper coverage before your court date, you risk even further punishment. 

Vehicles still under finance from a lender are also subject to further insurance requirements set by the lender. For example, most lenders require you to keep an active full coverage policy, regardless of the state minimums. Failure to comply with the standards of your contract could result in costly fees or even repossession.

Read more:

• Can a car be parked on a public road with no insurance?
• Is it illegal to own a vehicle without insurance?

When might a driver not need to insure a car?

Not all drivers own vehicles. When you commonly drive a rented or borrowed car, you want to insure yourself rather than the vehicle. Non-owner car insurance rates are typically very affordable, and a basic policy provides bodily injury and property damage liability coverage.

You may also choose to purchase some of the following:

• Rental car coverage through the rental company
• Personal injury protection insurance
• Underinsured or uninsured motorist coverage

Licensed drivers without a vehicle would never need collision or comprehensive insurance because those specifically cover the car. Additionally, a non-owner insurance policy only covers the policyholder, regardless of their household size.

Case Studies: Towing a Car Without Insurance

Case Study 1: Sarah’s Uninsured Car

Sarah’s car broke down on the side of the road, and she needed to have it towed to the nearest repair shop. However, Sarah’s car didn’t have insurance coverage at the time. She contacted a towing company and explained the situation.

The towing company agreed to tow her car despite the lack of insurance. During the tow, the tow truck driver accidentally caused damage to another vehicle. The towing company’s insurance was responsible for covering the damages suffered by the other vehicle.

Case Study 2: Mark’s Uninsured Car in an Accident

Mark’s car was involved in an accident, and it was no longer drivable. He called a towing company to have his car towed to an auto body shop for repairs. However, Mark didn’t have insurance on his car at the time.

The towing company informed him that they could tow his car, but he would be responsible for any damages that occurred during the tow. Mark decided to purchase insurance coverage directly from the towing company to protect his car during the towing process.

Case Study 3: Jenna’s Inoperable Car

Jenna’s car was inoperable due to mechanical issues, and she had no immediate plans to have it repaired. Since the car was not in use, Jenna considered canceling her insurance coverage to save money. She contacted her insurance company and discussed her options.

They informed her that she could suspend her policy while her car was not in use and reactivate it when she planned to start using the car again. This allowed Jenna to avoid canceling her insurance entirely and potentially facing penalties for driving without insurance in the future.

Final Thoughts on Towing a Car Without Insurance

Ultimately, you don’t need car insurance on a car towed from one place to another because it’s not operating during the tow. In theory, you don’t need insurance on an operable vehicle unless you intend to drive it on public roads. Driving on private property without insurance carries no penalty.

Apart from the two scenarios mentioned above, your registered vehicle must have insurance coverage. Otherwise, you face fees and penalties far more expensive than the cost of monthly car insurance rates. 

So does car insurance cover a tow? If you think you could benefit from a service such as Liberty Mutual tow, you may also want to consider a policy with roadside assistance. Compare Liberty Mutual quotes to other companies in your area to find the insurer with the most affordable roadside assistance rates.