Does Car Insurance Cover Towing in Ontario? (And Do You Have to Use Their Shop?)

The Short Answer: It Depends on Your Policy

Whether towing is covered depends on your policy, the coverages you bought and the reason for the tow. Coverage depends on your policy and the circumstances of the claim — so treat everything below as questions to ask your insurer or broker, not promises.

Towing After a Collision

If you have a collision claim, towing from the scene is often part of what the insurer pays for, but how much, and whether your deductible applies, depends on your policy and the circumstances. Ask your insurer before you assume the tow is covered.

Breakdown Towing

A mechanical breakdown is usually not an insurance claim. Breakdown towing is typically covered only if you have a roadside assistance add-on or a separate roadside membership. Otherwise you pay the tow operator directly.

Four Separate Questions

These often get mixed together. They are governed by different rules.

1. Who tows the car — towing rights

Ontario's Towing and Storage Safety and Enforcement Act, 2021 (TSSEA) lets you choose your tow company and destination, except on highway sections inside the province's Tow Zone Program. See Ontario: know your rights when getting a tow.

2. Where it's repaired — repair-shop choice

FSRA, Ontario's insurance regulator, states that as long as your insurance company approves the estimate, you may have your vehicle repaired at the shop of your choice. Your insurer may suggest a preferred shop; that is a suggestion. See FSRA: after an accident — understanding the claims process.

Insurer-preferred shops are not bad shops. If you choose a different one, ask how the estimate will be approved and whether the shop deals with your insurer directly.

3. Whether you get a rental — rental coverage

A rental or replacement vehicle after a collision is usually optional coverage (often called transportation replacement coverage, or OPCF 20), with a daily and total limit set in your policy. If you're not at fault, your policy's Direct Compensation – Property Damage (DCPD) coverage may also be relevant — check whether your policy includes it. Who arranges the rental is your choice; what the insurer will pay for depends on your coverage.

4. What you owe — your deductible and limits

Your deductible, coverage limits and any amounts the insurer declines are set by your policy and the claim decision. Ask your insurer before you authorize work.

Using Your Coverage Without Giving Up Control

1. Make sure everyone is safe and report the collision if required

2. Call your insurer to open the claim and ask what your policy covers

3. Arrange the tow with the company you choose (outside a tow zone)

4. Tell your insurer which repair shop you've chosen and let them approve the estimate

Pixel Towing offers collision repair and rental vehicles through businesses we have an interest in. We disclose that before any referral, and you are free to choose any other shop or rental company.

This article is general information, not insurance advice.

Need a tow after a collision in Brampton or the GTA? Call 647-673-9755.