Towing and Labor Costs under the PAP

Our insured has a personal auto policy with endorsement PP 03 03, towing and labor costs coverage, attached. The endorsement states that the insurer will pay for towing and labor costs necessitated by the disablement of the covered auto, provided the labor is performed at the place of disablement. In our opinion, this language includes a jump start in the event the auto would not start. The insurer disagrees, stating that the labor referred to in the endorsement is the placing of the vehicle onto a tow truck. The insurer claims that a jump start is not part of the coverage provided and that any coverage has to be in connection with actual towing.

We dispute this reasoning and would appreciate your opinion.

Illinois Subscriber

We agree with you that covered labor costs include jump starts. The wording on the coverage form is in tune with this interpretation.

The insuring agreement on PP 03 03 says that the insurer will pay towing and labor costs. The use of the word “and” means that the insurer looks upon labor costs as a separate cost to be paid. The towing is one cost and the labor is another. If the labor costs were to be included in the towing, the phrase would have been something like “towing, including labor” or “towing and its costs”. Since the wording of the coverage is open to reasonable interpretations, the insured should get the benefit of the doubt.

Also, the coverage is for labor performed at the place of disablement. A jump start is labor performed at the place of disablement. What could be clearer? Besides, we would think that the insurer would be willing to pay for a jump start instead of a tow. Towing can run into a lot of money and a jump start can save that money—a good result for insured and insurer alike.

 

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