Not your fault: the other driver insurance pays

If the accident was clearly the other driver fault, their auto liability insurance is responsible for your towing costs as part of property damage coverage.

In practice, this means you file a third-party claim with the at-fault driver insurance company. Their property damage liability coverage pays for towing, storage, and repairs to your vehicle — subject to their policy limits.

You typically do not pay anything out of pocket in a clear not-at-fault accident, and filing a claim with the other driver insurance does not affect your own premium.

The complication: the at-fault driver may not have adequate insurance, may deny fault, or their insurer may dispute liability. In these cases, filing with your own collision coverage first gets your vehicle repaired faster — your insurer then pursues the at-fault party through subrogation.

Your fault: your collision coverage pays

If you caused the accident, your collision coverage pays for towing and repairs to your own vehicle, subject to your deductible.

How it works: Your deductible applies to the total claim. If your deductible is $500 and total damages including towing are $3,000, you pay $500 and insurance pays $2,500. The towing cost is not a separate out-of-pocket expense — it is part of the total claim against which your deductible applies.

If the tow costs $200 and your deductible is $500, you effectively pay the full $200 tow as part of your deductible. If total damages exceed your deductible, the tow is covered within the claim.

At-fault accidents typically result in premium increases at renewal. The severity of the increase depends on your insurer, your history, and your state.

Fault is disputed: file with your own insurer first

When fault is unclear or disputed, file with your own collision coverage to get the vehicle repaired quickly rather than waiting for fault determination.

Your insurer will handle repairs and towing costs, then pursue reimbursement from the at-fault party through a process called subrogation. If fault is later determined to be the other driver, your deductible may be reimbursed.

This approach gets your vehicle repaired in days rather than waiting weeks or months for a fault determination. The temporary out-of-pocket deductible is worth the faster resolution in most cases.

No insurance or underinsured driver: your uninsured motorist coverage

If the at-fault driver has no insurance or inadequate insurance, your uninsured or underinsured motorist property damage coverage applies — if you have it.

Uninsured motorist property damage (UMPD) coverage pays for damage to your vehicle caused by an uninsured driver, including towing costs. Not all states require UMPD coverage and not all drivers carry it — check your policy.

Without UMPD, you would need to sue the at-fault driver personally to recover towing and repair costs — a process that can take years and may recover nothing if the driver has no assets.

For this reason, carrying uninsured motorist property damage coverage is strongly recommended even in states where it is not required.

Out-of-pocket towing: when you pay directly

In some situations, you pay for towing directly and seek reimbursement later.

Emergency situations where you cannot reach insurance: If you need to authorize a tow immediately and cannot get insurance authorization, pay for it and keep the receipt. Submit the receipt with your insurance claim for reimbursement.

Towing above policy limits: If your insurance coverage caps towing reimbursement at $100 and the tow costs $300, you pay the $200 difference out of pocket.

Non-covered situations: If you drove a damaged vehicle from the scene before calling insurance and then need a subsequent tow, that second tow may not be covered since it did not occur at the accident site.

Always get a written receipt from the tow company showing the origin, destination, and total cost. This documentation is required for any reimbursement claim. See what accident towing should cost to verify you were not overcharged. See how insurance covers towing after an accident. See how to file an insurance claim for towing.