Roadside assistance is an important and beneficial service offered by vehicle manufacturers, insurance companies, or in some cases, third-party service providers. In the U.S., customer satisfaction surveys consistently rank roadside assistance as the most important aspect of automobile ownership, and a product that offers peace of mind when traveling.
Roadside assistance providers are usually networked with local towing and repair companies. It allows the service provider to dispatch the nearest available company, which helps keep repairs and towing costs lower than if using a distant company. Local providers can also provide additional value-added services, such as an oil change or tire rotation during a tow.
How Does Roadside Assistance Work?
Roadside assistance works like this: someone enrolls in a program and pays the monthly or annual fee. In the event their vehicle won’t start, or they experience engine failure and pull over, members can reach a 24/7 call answering service to arrange for roadside assistance. After confirming your identity and getting a general sense of what’s wrong, the company will dispatch the closest available service truck in your area.
Most roadside assistance services have a predetermined number of times an individual can call during one calendar year. For instance, AAA caps it at four tows per year. While they may still provide assistance, they may also require additional payment before getting started.
What’s the Role of Roadside Assistance?
1. Help Drivers Avoid Costly Repairs
Because service providers utilize local providers, drivers may be able to avoid the need for an expensive tow or the higher cost of repairs from a distance-based company. It can also help drivers avoid being stranded on the road, which is an especially big concern at night. Additionally, it can help them avoid a tow altogether if they can safely drive their car to a repair facility or get them where they’re going while their vehicle is being repaired.
2. Help Cars Avoid Being Towed
It may be towed to a nearby licensed repair facility when your car breaks down and cannot get you where you’re going. You might be able to fix the problem yourself, but if not, you’ll most likely need to get your vehicle towed. If you’re traveling a long distance for such a repair, roadside assistance providers can help ensure that you get back on the road as soon as possible. This can reduce the cost of repairs and delay a tow, making it worth paying an extra premium for a service.
3. Offer Convenient Scheduling Options
In addition to the fixed emergency road services, many service providers also offer scheduled maintenance or towing services, which are charged at a flat rate. Service providers typically offer free towing with vehicle repairs as well.
4. Provide Extra Value to Drivers
Service providers can offer value-added services that help drivers avoid unscheduled repairs or preventive maintenance, saving them money. For example, they can offer free oil changes and tire rotations to help customers preserve the value of their vehicle. Research shows that consumers are willing to pay an extra $29 a month for roadside assistance to get those services included.
5. Offer Extra Services Without Being Overly Aggressive
The best roadside assistance services provide a variety of options for their customers to consider. However, some are more aggressive than others, determined to convince customers these services are essential when they are optional.
6. Offer Incentive Programs
Service providers may be able to offer a miles-driven discount and other incentives. This can help boost your customer satisfaction score, leading to more business in the future. It could also lead to new customers in the case of a partner program.
7. What are the Sources of Revenue?
The source of revenue for roadside assistance is shifted warranty costs and vehicle purchase services. Service providers may charge a flat monthly fee or an annual fee, including discounts on service and products such as oil changes or tire rotations. The number of drivers with roadside assistance through insurance, manufacturers, or third-party services has increased, with numbers between 47% and 61% of vehicles in the United States having access to some form of roadside assistance.