South Carolina Personal Lines Practice Exam

What is the basic limit for costs incurred at the location a vehicle is disabled due to a towing and labor cost endorsement?

1. 15

2. 25

3. 35

4. 50

The correct answer is: 25

The basic limit for costs incurred at the location where a vehicle is disabled, as specified under a towing and labor cost endorsement, is designated at $25. This coverage typically helps to alleviate the financial burden of towing the vehicle to a nearby repair shop as well as covering the labor costs associated with getting the vehicle back on the road, at least to a certain dollar limit. Understanding this limit is crucial for policyholders, as it indicates the maximum amount the insurer will payout for these types of expenses under the endorsement, thereby allowing customers to make informed decisions about the coverage they might require. It’s important to be aware that policyholders can often choose to increase this limit for an additional premium, providing further assistance for more extensive needs.