We have all received those offers in the mail from AAA for their Roadside Assistance program, which advertises peace of mind for traveling the open road. While it is easy to see the need for such services, it can seem tempting to choose a similar plan through your auto insurance carrier in order to save money. After all, this only adds about $3-10 to your insurance bill on a six month policy. Similar coverage will cost you $50-100 per year through a company like AAA. Surely insurance is a better deal, right? Think again!
What you may not know is that insurers keep track of your roadside assistance claims and in some cases, you may find yourself paying a higher premium if your car blows a tire one too many times. While it is unlikely that a one-time jump start will raise your rates, many insurers consider roadside assistance claims as one predictor of risk, which can impact premiums. Remember the money you thought you were saving by using your auto insurance instead of AAA? You can kiss that money good-bye.
In addition, automobile towing claims are reported to a national database run by Atlanta-based ChoicePoint, which provides insurers with claims information on consumers to help insurers process insurance applications. This database is checked each time you apply for a new policy in order to determine whether or not you have been truthful in regards to your application. However, it can be nearly impossible to distinguish a towing claim made for roadside assistance from one made after a motor vehicle accident. This means that flat tire you had that required a tow could make future inquirers think that you were in an accident you did not fully disclose. Interestingly, Choicepoint does not keep a record of towing claims made through companies like AAA.
These reasons alone are reasons to choose AAA over your auto insurance provider, but also keep in mind that AAA offers discounts on hotels, car rentals, and other travel expenses which can quickly add up. Plus, you can be guaranteed that your insurance premiums will not increase, and your records will be kept private. That kind of peace of mind is worth a little extra money to me. Is it worth it to you?
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