Quick Answer: If Allstate covers your towing and later totals your car, they typically pay both the towing bill and your total loss settlement according to your policy limits. The towing cost usually comes from your roadside assistance coverage, while the total loss payment comes from your comprehensive or collision coverage minus your deductible.
What To Do
Keep all towing receipts - Save every document from the tow truck company, including the invoice and any storage fees. Take photos of the paperwork in case originals get lost. If the car went to a storage yard, ask for a daily rate sheet in writing so there are no surprises when you go to retrieve your belongings.
Contact your Allstate agent immediately - Report the total loss and confirm which coverages apply to your situation. The faster you open the claim, the sooner the clock stops on storage fees. Delays of even a few days can add $100 or more in yard charges that Allstate may or may not cover depending on your policy language.
Ask about towing payment timing - Some adjusters pay towing costs directly to the tow company, others reimburse you after you pay. If you have not yet paid the tow yard, ask Allstate to issue a direct payment. This avoids you fronting cash and waiting for a reimbursement check that could take 7-14 business days.
Verify your actual cash value - Allstate will offer the car’s market value minus depreciation. Research comparable vehicles in your area before accepting. Use at least three sources: Kelley Blue Book, Edmunds, and local listings on Autotrader or Craigslist. If your car had recent repairs, new tires, or low mileage for its age, document those with receipts and push back if the initial offer does not reflect them. Allstate adjusters can revise offers when given solid comparable data.
Calculate your total settlement - Your check equals the actual cash value minus your deductible, plus any covered towing costs if they haven’t been paid separately. Write this out on paper before you sign anything. A $12,000 actual cash value minus a $500 deductible means a $11,500 settlement check, with towing reimbursed separately or already handled directly.
Handle the title transfer - Allstate needs your title to complete the total loss settlement. If the car is financed, they’ll work directly with your lender. If you own the car outright, locate the title before the adjuster asks for it. A lost title requires a replacement from your state DMV, which can slow the process by a week or more.
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How Coverage Works
Your roadside assistance coverage (usually $25-100 per incident) handles towing costs. This coverage has no deductible and doesn’t affect your rates. It is designed for exactly this kind of situation, a breakdown that leads to a bigger claim, and the two coverages run on separate tracks.
Your comprehensive or collision coverage pays for the totaled vehicle. You’ll pay your chosen deductible ($250, $500, $1000, etc.) and receive the difference. Comprehensive applies when the loss was caused by something outside your control, like a deer strike, flood, or fire. Collision applies when the car was in an accident. The deductible amount is the same either way; what matters is which event caused the damage.
If you have gap insurance through Allstate, it covers the difference between what you owe on the loan and the car’s actual cash value. For example, if you owe $14,000 but Allstate values the car at $11,500, gap insurance covers the remaining $2,500. Without it, that balance stays with you.
What It Might Cost
Towing typically costs $75-200 for local hauls, more for long distances or specialty equipment. A flatbed for an AWD or all-wheel-drive vehicle often runs 20-30% more than a standard wheel-lift tow. Storage fees run $20-50 per day at most tow yards, and some yards charge a gate fee on top of the daily rate.
Your out-of-pocket expense equals your collision or comprehensive deductible minus any towing reimbursement if you paid upfront.
Common Questions
Q: Will filing a towing claim through Allstate raise my rates? A: Roadside assistance claims typically do not affect your premium because they are not fault-based. Your collision or comprehensive claim may affect your renewal rate depending on your policy and claim history, but the towing portion on its own is not a rating factor.
Q: Can Allstate make me accept their first total loss offer? A: No. You can negotiate the actual cash value before signing. Provide written evidence of comparable vehicles in your area and any documentation of recent repairs or upgrades, and request a revised offer in writing.
Q: What happens if I still owe more on the car than Allstate will pay? A: If you do not have gap insurance, you are responsible for the remaining loan balance after Allstate pays out the actual cash value. Contact your lender immediately to discuss payment options for the shortfall.
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Stay Safe
- Don’t sign any settlement papers until you understand all payments
- Get written confirmation of what Allstate will pay directly versus reimburse
- Remove all personal items before the car goes to salvage
- Cancel your registration and insurance only after the settlement completes
Need roadside help? Visit Tow With The Flow for real answers when your car breaks down.