What is the coverage limit for towing and labor costs under the appropriate endorsement?

Prepare for the North Carolina Property and Casualty State Exam. Use flashcards and multiple choice questions with hints and explanations. Boost your exam readiness!

The coverage limit for towing and labor costs under the appropriate endorsement, which is typically included under a specific endorsement for roadside assistance or towing, is indeed $25. This limit is designed to provide policyholders with a reasonable amount of coverage for emergency services that might be required when a vehicle is disabled.

Having an endorsement for towing and labor can help significantly if a vehicle breaks down, as these services can be unexpectedly expensive. The specified limit allows for coverage that can help mitigate these costs without an excessive premium increase.

It's important to note that while higher limits are available in some policies or by purchasing different kinds of endorsements, $25 is commonly the standard amount found in many policies. Understanding this helps policyholders make informed decisions about their coverage needs and the potential for additional coverage if they desire more extensive towing and labor expense protection.

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