Does insurance cover towing after an accident?

If you've ever been in a car accident, whether it's a minor fender-bender or a major collision with serious injuries, you know how quickly the aftermath can escalate. One of the first questions that may come up is, "Who's going to tow my car, and who's going to pay for it?"

Many motorists in Canada assume that towing is automatically included in their car insurance policy, especially following an accident. The truth is, it's a bit more complicated than that. Not all insurance plans cover towing, and even if they do, there are limitations on the type of coverage offered, the circumstances of the accident, and who is eligible to tow your car. Understanding whether your car insurance covers towing services is a must, not just to avoid unexpected costs, but to know how to respond in the aftermath of an accident correctly and confidently.

At a glance:

Let's take a look at what we will be covering:

When towing service after a car accident is covered by insurance

Towing coverage after a car accident largely depends on the type of insurance policy you have and the nature of the incident at hand:

Collision coverage

Collision coverage is a type of optional car insurance coverage in Canada. It protects the policyholder if they get into a collision with another vehicle or object on the road, regardless of whether they are at fault for the accident.

Under the collision coverage portion of your policy, you can be compensated for the cost of property damage caused by the collision, such as damage to your car. Some collision insurance also covers the cost of towing after an accident, regardless of fault. However, coverage depends on policy limits and the distance of the tow. For example, if your insurance provider only allows towing services within 50 kilometres but your car is taken to a shop 100 kilometres away, you may be responsible for covering the cost of the additional distance.

Preferred towing service and reimbursement

Most insurance companies have a list of "preferred towing companies" that are pre-approved and are under contract with them. Using one of these towing companies typically means that you (or the towing company) will be able to directly bill your insurer once you use their services. Using a non-preferred or towing company that has not been approved by your car insurance provider can result in claim delays or the denial of your reimbursement.

Direct compensation property damage in Ontario

If you are not at fault for the collision, Ontario's Direct Compensation Property Damage (DCPD) coverage may include towing costs. In 2024, policy guidelines confirm that towing can be reimbursed when your vehicle is damaged by another at-fault driver. However, this policy is no longer mandatory, meaning you will need to opt into it when renewing your car insurance.

When towing may not be covered

Even if your car insurance covers tow trucks, there are certain scenarios where your coverage could be denied:

• You fail to notify your insurance company before you contact the tow truck driver.

• You used an unapproved towing company.

• Your vehicle was not involved in a car accident. For example, you experience a mechanical breakdown.

To ensure that things run smoothly, make sure you contact your provider from the accident scene and confirm with them that your tow truck will be covered.

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. As of 2024, here are some average costs you can expect if you have your car towed:

Average tow truck fees in 2026

The average tow truck fee across Canada ranges between $75 and $125 for a standard local tow. After that, most towing companies charge a per-kilometre rate, which typically ranges between $2 and $4 per kilometre. For example, in urban areas like Richmond, British Columbia, a local towing fee starts at $90 to $150, with additional charges for distance travelled. According to ICBC, flat-rate towing for light-duty vehicles starts at $71.69, with kilometre fees of $2.44 per kilometre, and $3.05 per kilometre for medium-duty vehicles. Other factors that may increase your towing costs include:

• After-hour services (nighttime towing, weekends, and towing on holidays).

• Difficult recovery efforts. For example, the vehicle is lodged in a ditch or has flipped.

• Storage and hookup fees.

• Towing to a location outside of the insurance company's limits.

Example

In 2017, the Toronto Sun reported a story that highlights how unpredictable towing charges can be. According to the article, a driver was quoted $4,300 for a standard tow following a collision, which is far more expensive than the national average. After legal action was taken against the towing company, the driver was able to bring the cost down to $1,594.

Pro tip

Always ask for a written quote or receipt before your vehicle is towed. This will ensure that you don't get surprised by inflated charges like that Ontario driver, and will help ensure you have proof to send to your insurance company before you are compensated for your costs.

What to do after your car is towed

When your car's been towed to a mechanic after a collision, it's easy to feel overwhelmed about what you need to do next. Understanding your next steps can ensure you don't make mistakes that could cost you later on. Here's what you need to do:

1. At the scene: Stay informed and calm

After your car is towed, you'll need to:

• Confirm where your car is going: Ask the tow truck driver for the name, phone number, and address of the facility your vehicle is going to.

• Request documentation: Always ask for a written invoice or dispatch document that shows your pickup location, destination, time of day, and rate charged.

• Call your insurer: Before your car is towed, remember to contact your insurance provider. They may recommend a preferred towing company or an authorized repair shop for you to tow your vehicle to.

2. Preparing your vehicle before it is towed

If it is safe to do so:

• Remove your personal belongings: Remove your bags, electronics, important documents, and other belongings from your vehicle.

• Document damage: Take photos and videos of your car’s condition before it’s towed. You will need to submit this evidence to your insurance company during your claims process.

• Secure your vehicle: Close the windows and lock the doors.

3. After the tow: Where did your car go?

Depending on the accident, your vehicle may be taken to:

• A certified repair shop if it’s repairable.

• A salvage yard if it’s likely a write-off.

• A temporary impound or storage lot if directed by law enforcement.

Regardless of where your car ends up, make sure to contact the facility as soon as possible to ensure your vehicle has arrived and its current status.

4. If your vehicle is a total loss

If your insurer deems your vehicle a total loss, it may remain in a storage facility until your claim is settled. In this case, you'll need to:

• Remove your licence plates and belongings.

• Confirm who is covering additional towing or storage fees.

• Sign any release forms to settle your claim.

Insurance claim steps for towing

If your car was towed after an accident, and you have insurance coverage for towing, the next step is getting reimbursed. Filing a towing claim is relatively straightforward. Here's what you need to do:

1. Collect your documents

The tow truck company will give you paperwork detailing the service they are providing. Keep a copy of the receipt and any other paperwork given to you as a record. Take a photo of your vehicle once it has been loaded onto the tow truck. Beyond this information, you'll want to collect a copy of the police report (if applicable), contact details of other vehicles involved, witness statements, and details about the accident scene.

2. Contact your car insurance company

Next, you'll want to contact your insurance provider as soon as possible to open a claim. You can usually do this in multiple ways:

• Through your insurer’s mobile app or online portal.

• By calling your BrokerLink advisor.

• Or via email, if your insurer allows this.

Remember, most insurers have submission deadlines when it comes to filing a claim. Calling as soon as the incident occurs is the best way to avoid having to pay for towing and other costs out of pocket.

Mistakes to avoid if you have your car towed

To ensure your claim is accepted, avoid these common mistakes:

• Using an unauthorized tow truck may result in denied compensation.

• Forgetting to ask for a receipt can delay your claim and lead to denied compensation as well.

• Submitting incomplete information can slow the process and make processing your claim difficult.

Understanding claim timelines

Most insurers process towing claims within 5 to 10 business days, provided you've submitted all of your required documents to them. If you don’t hear back, follow up with your claims adjuster as soon as possible to avoid further delays. Remember, being organized and proactive from the beginning will help ensure that your towing costs are properly reimbursed and your insurance claim goes smoothly.

Towing vs. roadside assistance: What’s the difference?

Towing and roadside assistance are often referred to as the same thing, when in reality, they are covered differently under your insurance policy. Understanding these differences can help you avoid surprises and ensure you are protected during unexpected situations. Let's take a look:

When car insurance covers towing (after an accident)

Towing after an accident is usually covered under:

• Collision insurance

• All-perils coverage

• Added through a towing endorsement like OPCF 35 in Ontario or SEF 35 in Alberta.

This type of towing is only applicable if your vehicle is damaged in an accident and needs to be moved to a mechanic for vehicle repairs. It’s not designed to help you if your car is stuck on the side of the road due to a breakdown or other non-collision events.

Roadside assistance (non-accident-related towing)

On the other hand, roadside assistance covers a wider range of everyday problems that may find you stuck on the side of the road in need of a tow, including:

• Flat tires.

• Battery boosts.

• Running out of gas.

• Getting locked out of your car.

• Minor mechanical issues.

• Short-distance towing.

Roadside assistance can be purchased separately from your car insurance plan through CAA or added to your coverage for approximately $5 to $15 annually on top of your standard premium. Let's look at a quick comparison table:

Which should you have?

Ideally, drivers should aim to have both types of coverage. Towing after an accident comes in handy when your stress-levels are high while roadside assistance coverage handles everyday car trouble. Interested? BrokerLink can help tailor your coverage to ensure you're never stranded.

Towing scams and how to avoid them

Yes, tow truck scams exist across Canada and usually occur following a collision when emotions run high.

Red flags to watch out for

Beware of these signs that may indicate a potential scam:

• A tow truck arrives without being called first.

• Tow truck operators are pushy and insist that they tow your vehicle immediately.

• The driver does not provide you with upfront pricing or refuses to give you an invoice.

• The driver directs you to a partner auto club without your consent.

What you can do

Here are the steps you should take:

• When police arrive, ask them to contact a trusted towing company.

• Contact your insurer to confirm you have coverage.

• Get all agreements and pricing in writing.

• Don't sign any blank or vague consent forms.

• If something feels off, trust your gut.

Learn more with BrokerLink

Towing after an accident isn't just about getting your damaged vehicle off the road. It's about protecting your finances, avoiding scams, and ensuring you're covered by your auto insurance. Unfortunately, too many drivers these days are surprised to learn they aren't always covered or that using the wrong company could cost hundreds of dollars that go uncompensated.

Whether you're reviewing your policy, thinking about adding a towing or rental car endorsement to your plan, or have questions about your current coverage, the experienced team at BrokerLink is here to help.

Get an auto insurance quote1-866-724-2372

FAQ

Does collision insurance always include towing coverage?

Not always. Collision coverage will only cover towing after an accident if your vehicle is undrivable. You may need an additional endorsement for full coverage.

What is the average cost of a tow truck in Canada after an accident?

As of 2024, a standard towing typically costs between $75 and $125, plus an additional $2 to $4 per kilometre beyond your base distance.

Will I be reimbursed if I choose my own towing company?

It depends on your insurance company. Most providers have preferred towing companies on contract to ensure rates and practices meet their standards. You may want to call your insurer to confirm whether they'll cover you, if you choose to go with a non-preferred company.

Does roadside assistance cover accidents as well as breakdowns?

No. Roadside assistance coverage is designed for breakdowns and other road hazards, not collision-related damages.

Can I refuse a tow if the police already called one?

Yes, but it could delay the process. You can ask to use your insurer’s preferred provider if you are worried about fees and coverage.

Does collision insurance always include towing coverage?

Not always. Collision coverage will only cover towing after an accident if your vehicle is undrivable. You may need an additional endorsement for full coverage.

How long does it take for insurance to reimburse towing costs?

If all the right documents are submitted, it should take your insurance provider between 5 and 10 business days to process your claim for compensation.

Do all provinces in Canada have the same rules for towing after accidents?

No, regulations will vary between provinces.

If you have any questions, contact one of our local branches.