Why towing coverage causes so much confusion

Many Australian drivers assume towing is automatically covered by their car insurance. The reality is more nuanced. Whether car insurance covers towing depends on how the tow occurs, why it is needed, and what type of policy you hold. The answer can differ significantly between an accident, a breakdown, or towing a caravan, boat, or trailer.

Understanding car insurance towing coverage before you need it can save time, money, and stress. 

At Nationwide Towing, we are here to explain when towing is included, when it is not, how limits apply, and what you should check in your policy so you are not caught out on the side of the road.

When towing is included in standard coverage after an accident

In most cases, towing after an accident is covered under comprehensive car insurance. If you are involved in a collision and your vehicle is unsafe or undriveable, insurers generally arrange or reimburse towing to the nearest repairer or holding yard.

This means does car insurance cover towing after an accident is usually yes, provided the accident is covered under your policy. If you are not at fault, the other driver’s insurer may also be responsible for towing costs.

However, coverage is not unlimited. Insurers often specify:

• A maximum towing distance
• Approved towing providers
• A requirement to notify the insurer before arranging a tow

If you arrange towing without approval, reimbursement may be capped or declined. Always contact your insurer as soon as possible after an accident to confirm what is included.

Why roadside assistance add ons matter for breakdowns

Breakdowns are where confusion commonly arises. Standard car insurance does not usually cover towing for mechanical failure, flat batteries, or overheating unless roadside assistance is included.

This is where roadside assistance add ons become critical. These add ons often include towing to a repairer when your car cannot be driven, even if there has been no accident.

If you are asking does car insurance cover towing for a breakdown, the answer is usually no unless roadside assistance is part of your policy or held separately through an auto club.

Roadside assistance coverage varies by provider and may include limits on:

• Number of call outs per year
• Towing distance
• Types of breakdowns covered

Understanding these limits is essential, especially for drivers who travel long distances or rely heavily on their vehicle.

How towing limits and deductions work

Even when towing is covered, it is rarely unlimited. Most policies include towing limits, either in kilometres or dollar value. For example, your policy may cover towing up to 20 or 50 kilometres from the breakdown or accident site.

Beyond this, you may need to pay the difference. Some policies also apply an excess, particularly when towing is part of an accident claim.

If you are searching does car insurance reimburse for towing, the key detail is whether towing is arranged by the insurer or reimbursed after the fact. Many insurers prefer to organise towing themselves to control costs and ensure compliance.

If you pay upfront for an insurance car towing service, keep all receipts and confirm reimbursement eligibility before assuming the cost will be covered.

Towing caravans, boats, and trailers

Towing coverage becomes more complex when caravans, boats, or trailers are involved. Car insurance typically covers the insured vehicle, not automatically what it is towing.

For example:

• Does car insurance cover towing a caravan? 

• Depends on whether the caravan is insured separately

• Does car insurance cover towing a boat?

• Usually requires the boat to have its own insurance policy

• Does your car insurance cover towing a trailer?

• Varies by insurer and policy wording

In many cases, the towing vehicle is covered for damage, but the caravan or boat is not unless separately insured. This leads to common questions such as is a caravan covered by car insurance when towing or does my car insurance cover my boat when towing. The answer is generally no unless you have specific cover.

Some comprehensive policies include limited liability cover for trailers, but this does not extend to full damage cover.

Caravan and trailer insurance considerations

If you tow regularly, caravan or trailer insurance is strongly recommended. This type of insurance covers damage to the caravan or trailer itself and may include towing benefits if it becomes undriveable.

If you are asking is towing a caravan covered on car insurance, the safer approach is to treat the caravan as its own insured asset. This avoids disputes and coverage gaps.

Similarly, does car insurance cover caravan towing often only applies to third party damage caused by the towing vehicle, not damage to the caravan.

What is not covered by car insurance towing

Understanding exclusions is just as important as knowing what is covered. Common towing exclusions include:

• Towing from an impound yard
• Long distance towing beyond policy limits
• Non approved towing providers
• Towing due to unroadworthy conditions
• Costs related to illegal parking or fines

If your vehicle is impounded, insurance will not cover towing or storage fees. If you request a long distance tow to a specific location without insurer approval, you may need to pay the additional cost yourself.

This is why checking car insurance towing coverage details matters before relying on it.

Checking your policy the right way

Do not rely on assumptions or sales summaries. To confirm if towing is included in car insurance, review the product disclosure statement carefully.

Look for sections covering:

• Towing after an accident
• Roadside assistance benefits
• Maximum towing distances
• Approved towing providers
• Coverage for caravans, boats, and trailers

If anything is unclear, contact your insurer and ask specific questions based on how you use your vehicle.

Choosing the right towing coverage for your needs

Drivers who commute locally may be comfortable with basic towing limits, while those who tow caravans, boats, or travel regionally should consider higher coverage levels.

If you frequently tow, ensure:

1. Your towing vehicle is comprehensively insured
2. Your caravan or boat has separate insurance
3. Roadside assistance covers towing while towing
4. Towing limits match your travel patterns

This approach reduces the risk of unexpected costs during breakdowns or accidents.

How Nationwide can help when the gaps in your insurance need filling

Even with insurance, there are times when immediate towing support is needed. Insurer call centres may take time, coverage may be limited, or the situation may fall outside policy conditions.

Nationwide Towing provides professional, reliable towing services when vehicles, caravans, boats, or trailers need to be moved safely. Whether insurance covers the tow or not, having access to an experienced towing provider ensures your vehicle is handled correctly.

Nationwide works with insurers, roadside assistance providers, and private customers to deliver compliant towing solutions when it matters most.

Know your coverage before you need it

So does car insurance cover towing? Sometimes yes, sometimes no. Towing after an accident is often included under comprehensive cover, while breakdown towing usually requires roadside assistance. Coverage for caravans, boats, and trailers typically depends on separate policies and specific inclusions.

The best protection is understanding your policy before an issue arises. Review your coverage, ask questions, and ensure towing limits align with how you drive and travel.

If your vehicle breaks down, is involved in an accident, or requires authorised towing support, Nationwide Towing can provide professional assistance when you need it, regardless of whether insurance is organising the tow or not.