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Reviewed by David KindnessReviewed by David Kindness
Getting a flat tire or running out of gas can disrupt your daily commute or derail a vacation road trip. An estimated 69 million breakdowns happen on America’s roadways each year, roughly equivalent to one for every three drivers. Roadside assistance insurance can come in handy if your vehicle leaves you stranded. There are a number of ways to get coverage, and prices can vary from $0 on up. Here is how to compare.
Key Takeaways
Roughly 1 in 3 drivers experience vehicle trouble that requires roadside assistance each year. Roadside assistance insurance can cover a variety of situations, from flat tires to towing to lockouts. Car insurance companies, AAA, and your credit card issuer are some of the options for getting roadside assistance coverage. Having this coverage doesn’t necessarily mean you won’t have some out-of-pocket costs.
What Is Roadside Assistance Insurance?
Roadside assistance insurance is designed to help you if you run into vehicle trouble on the road or even at home.
The range of services it covers can vary. But generally, you may be covered for things like:
Towing to the nearest repair locationFlat tire replacementJump starts if your battery goes deadLocksmithing services if you get locked outFuel delivery if you run out of gasExtrication if your car gets stuck in mud, snow, or a ditchRental car discounts if you need to rent a car temporarily
Roadside assistance coverage is different from standard auto insurance. Auto insurance is designed to protect you and your vehicle in case of accidents, theft, vandalism, or damage related to acts of nature. It can cover repairs to the vehicle, as well as medical expenses and personal liability for injuries to other people or their property. You may be able to get roadside assistance as part of your auto insurance policy, but they’re two separate things.
Note
Whether you’re eligible for roadside assistance coverage through your car insurance company or anywhere else may depend on your vehicle’s age and mileage.
How Roadside Assistance Insurance Works
If you have roadside assistance insurance, you can use it like you would any other insurance.
Specifically, if you have a situation that you think requires assistance, you’d start by calling the company you have your coverage through. Some roadside assistance providers also have a mobile app you can use.
You’d need to explain the type of vehicle issue you’re having, and the roadside assistance company would quickly review your policy to make sure that it’s covered. Assuming it is, a partner company (such as a towing company) would be dispatched to wherever you are to help you out. You’d be responsible for paying any out-of-pocket costs not covered by your roadside assistance policy. And if the policy has a deductible, you’d be responsible for paying that, as well.
There may be limits on how far a vehicle can be towed without incurring additional towing fees.
Where to Get Roadside Assistance Insurance
There are several ways to get roadside assistance insurance coverage, including:
Car insurance companiesRoadside assistance membership services (such as AAA)Vehicle manufacturer’s warrantyCell phone company Credit card companyMembership organizations
The two most important things to consider when comparing roadside assistance insurance are what’s covered and what you’ll pay for it. In terms of cost, you might pay $15 to $60 per year for coverage through your current car insurance policy. Enrolling in a roadside assistance membership plan might cost anywhere from $50 to $360 a year.
Credit card companies may not charge a separate fee for this coverage; instead, it’s included as a card benefit. But you may still pay an annual fee for the card itself and there may be some out-of-pocket costs you have to pay to take advantage of this feature. Cell phone companies may also provide this as an add-on to your account. Depending on the type of plan you have, this may or may not require a small monthly fee.
If you’re buying a new or newer car that’s still covered by the manufacturer’s warranty, free roadside assistance services may be included automatically. You can ask the dealer whether it’s included, what it covers, and how long it lasts.
Important
Roadside assistance coverage that’s provided as part of a car manufacturer’s warranty typically lasts for a certain time period or a certain number of miles.
Belonging to some membership organizations can also unlock roadside assistance benefits. For example, if you belong to a college alumni association or a professional organization, you may be able to obtain membership in AAA or a similar service at a discount.
When reviewing roadside assistance coverage, pay close attention to what’s included in the policy—and what exclusions may apply. For example, there may be restrictions on which towing companies you can use or how many vehicles are covered. It’s also helpful to ask about adding multiple drivers to your policy if you’re not the only person who drives your car. That may involve an additional fee.
Important
There may be a limit on the number of service claims you can make each year through your roadside assistance insurance policy.
Do You Have to Have Roadside Assistance Insurance, by Law?
No, there’s no legal requirement to have roadside assistance insurance, as there is in most states with regular car insurance.
Do You Need Roadside Assistance Insurance?
It depends. When deciding whether it’s worth purchasing roadside assistance, consider things like:
The age and condition of your vehicleThe number of people in your household who normally drive your vehicleHow many miles you typically drive in a yearHow often you commute versus take longer road tripsHow adept you or other members of your household are at handling minor car troubles, such as changing a flat tire
Is Roadside Assistance Insurance Worth It?
It might be. However, keeping your vehicle well-maintained and regularly serviced can help minimize the odds of a breakdown. And if you typically only drive short distances, dealing with car trouble if it happens may not be a major inconvenience.
But if you’re worried about being stranded on the side of the road, roadside assistance insurance can offer some peace of mind. Be sure to compare costs and coverage so you know what you’re getting. And if you’re buying coverage through your car insurance company, ask if any discounts are available that could save you money.
The Bottom Line
Roadside assistance insurance can help when you experience a vehicle breakdown. You can buy coverage or sometimes get it for free with a credit card. For some, it’s worth it, because it offers peace of mind. Whether it will be worth it to you will depend on your own circumstances, such as how much you drive, and how far.
Read the original article on Investopedia.
RealPeopleGroup / Getty Images
Reviewed by David KindnessReviewed by David KindnessGetting a flat tire or running out of gas can disrupt your daily commute or derail a vacation road trip. An estimated 69 million breakdowns happen on America’s roadways each year, roughly equivalent to one for every three drivers. Roadside assistance insurance can come in handy if your vehicle leaves you stranded. There are a number of ways to get coverage, and prices can vary from $0 on up. Here is how to compare.
Key TakeawaysRoughly 1 in 3 drivers experience vehicle trouble that requires roadside assistance each year. Roadside assistance insurance can cover a variety of situations, from flat tires to towing to lockouts. Car insurance companies, AAA, and your credit card issuer are some of the options for getting roadside assistance coverage. Having this coverage doesn’t necessarily mean you won’t have some out-of-pocket costs.
What Is Roadside Assistance Insurance?Roadside assistance insurance is designed to help you if you run into vehicle trouble on the road or even at home.The range of services it covers can vary. But generally, you may be covered for things like:Towing to the nearest repair locationFlat tire replacementJump starts if your battery goes deadLocksmithing services if you get locked outFuel delivery if you run out of gasExtrication if your car gets stuck in mud, snow, or a ditchRental car discounts if you need to rent a car temporarilyRoadside assistance coverage is different from standard auto insurance. Auto insurance is designed to protect you and your vehicle in case of accidents, theft, vandalism, or damage related to acts of nature. It can cover repairs to the vehicle, as well as medical expenses and personal liability for injuries to other people or their property. You may be able to get roadside assistance as part of your auto insurance policy, but they’re two separate things.
NoteWhether you’re eligible for roadside assistance coverage through your car insurance company or anywhere else may depend on your vehicle’s age and mileage.
How Roadside Assistance Insurance WorksIf you have roadside assistance insurance, you can use it like you would any other insurance. Specifically, if you have a situation that you think requires assistance, you’d start by calling the company you have your coverage through. Some roadside assistance providers also have a mobile app you can use. You’d need to explain the type of vehicle issue you’re having, and the roadside assistance company would quickly review your policy to make sure that it’s covered. Assuming it is, a partner company (such as a towing company) would be dispatched to wherever you are to help you out. You’d be responsible for paying any out-of-pocket costs not covered by your roadside assistance policy. And if the policy has a deductible, you’d be responsible for paying that, as well. There may be limits on how far a vehicle can be towed without incurring additional towing fees.
Where to Get Roadside Assistance InsuranceThere are several ways to get roadside assistance insurance coverage, including:Car insurance companiesRoadside assistance membership services (such as AAA)Vehicle manufacturer’s warrantyCell phone company Credit card companyMembership organizationsThe two most important things to consider when comparing roadside assistance insurance are what’s covered and what you’ll pay for it. In terms of cost, you might pay $15 to $60 per year for coverage through your current car insurance policy. Enrolling in a roadside assistance membership plan might cost anywhere from $50 to $360 a year.Credit card companies may not charge a separate fee for this coverage; instead, it’s included as a card benefit. But you may still pay an annual fee for the card itself and there may be some out-of-pocket costs you have to pay to take advantage of this feature. Cell phone companies may also provide this as an add-on to your account. Depending on the type of plan you have, this may or may not require a small monthly fee. If you’re buying a new or newer car that’s still covered by the manufacturer’s warranty, free roadside assistance services may be included automatically. You can ask the dealer whether it’s included, what it covers, and how long it lasts.
ImportantRoadside assistance coverage that’s provided as part of a car manufacturer’s warranty typically lasts for a certain time period or a certain number of miles.
Belonging to some membership organizations can also unlock roadside assistance benefits. For example, if you belong to a college alumni association or a professional organization, you may be able to obtain membership in AAA or a similar service at a discount. When reviewing roadside assistance coverage, pay close attention to what’s included in the policy—and what exclusions may apply. For example, there may be restrictions on which towing companies you can use or how many vehicles are covered. It’s also helpful to ask about adding multiple drivers to your policy if you’re not the only person who drives your car. That may involve an additional fee.
ImportantThere may be a limit on the number of service claims you can make each year through your roadside assistance insurance policy.
Do You Have to Have Roadside Assistance Insurance, by Law?
No, there’s no legal requirement to have roadside assistance insurance, as there is in most states with regular car insurance.
Do You Need Roadside Assistance Insurance?
It depends. When deciding whether it’s worth purchasing roadside assistance, consider things like:The age and condition of your vehicleThe number of people in your household who normally drive your vehicleHow many miles you typically drive in a yearHow often you commute versus take longer road tripsHow adept you or other members of your household are at handling minor car troubles, such as changing a flat tire
Is Roadside Assistance Insurance Worth It?
It might be. However, keeping your vehicle well-maintained and regularly serviced can help minimize the odds of a breakdown. And if you typically only drive short distances, dealing with car trouble if it happens may not be a major inconvenience. But if you’re worried about being stranded on the side of the road, roadside assistance insurance can offer some peace of mind. Be sure to compare costs and coverage so you know what you’re getting. And if you’re buying coverage through your car insurance company, ask if any discounts are available that could save you money. The Bottom LineRoadside assistance insurance can help when you experience a vehicle breakdown. You can buy coverage or sometimes get it for free with a credit card. For some, it’s worth it, because it offers peace of mind. Whether it will be worth it to you will depend on your own circumstances, such as how much you drive, and how far. Read the original article on Investopedia.
Amazon.com: Its Role in the U.S. Industry
Introduction
Amazon.com, often simply referred to as Amazon, has transformed from an online bookstore into a colossal global conglomerate that has fundamentally altered the landscape of retail, technology, and numerous other industries. Founded in 1994 by Jeff Bezos, Amazon’s rapid growth and diversification have made it a central player in the U.S. economy. Its impact is felt across various sectors, including e-commerce, logistics, cloud computing, entertainment, and even artificial intelligence. This article explores Amazon’s role in the U.S. industry, examining its influence, achievements, and the challenges it faces.
The Rise of Amazon.com
Origins and Early Growth
Amazon began as an online bookstore in Bezos’s garage in Bellevue, Washington. The vision was simple but revolutionary: to create an online platform where people could buy books. Bezos recognized the potential of the internet to disrupt traditional retail and chose books as his starting point due to their wide appeal and ease of distribution. By offering a vast selection and competitive prices, Amazon quickly gained a foothold in the market.
The company’s initial public offering (IPO) in 1997 marked the beginning of its journey toward becoming a dominant player in the U.S. and global markets. Amazon’s early success was driven by its focus on customer satisfaction, an extensive inventory, and a commitment to fast and reliable delivery. This focus laid the foundation for its expansion into other product categories and services.
Diversification and Expansion
Amazon’s diversification strategy began with the introduction of new product categories, such as electronics, toys, and apparel. This move positioned Amazon as a one-stop shop for consumers, significantly expanding its customer base. The company also introduced its marketplace platform, allowing third-party sellers to offer their products alongside Amazon’s own inventory. This not only increased the variety of products available but also created a new revenue stream for the company through commissions on sales.
One of the most significant milestones in Amazon’s diversification was the launch of Amazon Web Services (AWS) in 2006. AWS provided cloud computing services to businesses, enabling them to rent computing power and storage rather than investing in expensive infrastructure. This service quickly became a cornerstone of Amazon’s business, contributing significantly to its profitability and establishing Amazon as a leader in the tech industry.
Amazon’s Role in E-Commerce
Transforming Retail
Amazon’s impact on the retail industry cannot be overstated. It has revolutionized the way consumers shop, shifting much of retail activity from brick-and-mortar stores to online platforms. The convenience of shopping from home, coupled with Amazon’s vast selection and competitive pricing, has led to a fundamental change in consumer behavior. This shift has forced traditional retailers to adapt, leading to the rise of omnichannel strategies that integrate online and offline sales.
The concept of “one-click shopping,” patented by Amazon in 1999, further streamlined the online shopping experience. This innovation reduced the friction in the purchasing process, contributing to higher conversion rates and reinforcing Amazon’s dominance in e-commerce. Additionally, Amazon Prime, launched in 2005, offered customers free two-day shipping and other benefits for an annual fee, further solidifying customer loyalty and increasing the frequency of purchases.
Impact on Small Businesses
While Amazon has provided opportunities for small businesses through its marketplace platform, it has also posed challenges. On the one hand, small businesses gain access to a vast customer base and the logistics infrastructure that Amazon offers. On the other hand, they face intense competition, not only from other third-party sellers but also from Amazon itself. The company’s ability to undercut prices and its control over the marketplace platform have led to concerns about fairness and market power.
Moreover, Amazon’s algorithms and data-driven approach to retail have raised questions about the transparency of how products are promoted and priced on the platform. Small businesses often struggle to achieve visibility without spending on Amazon’s advertising services, which can be costly. Despite these challenges, many small businesses continue to rely on Amazon as a vital sales channel, underscoring its central role in the U.S. retail industry.
Amazon in the Logistics and Supply Chain Industry
Revolutionizing Logistics
Amazon’s impact extends beyond retail into logistics and supply chain management. To fulfill its promise of fast and reliable delivery, Amazon has invested heavily in building a sophisticated logistics network. This network includes a vast network of fulfillment centers, advanced robotics, and a growing fleet of delivery vehicles, including drones.
Amazon’s logistics capabilities have set new standards for the industry. The company has pushed the boundaries of what is possible in terms of speed and efficiency, challenging traditional logistics providers like FedEx and UPS. Amazon’s commitment to customer satisfaction has driven innovations such as same-day and even one-hour delivery in select areas, further raising consumer expectations.
In-House Logistics Services
In recent years, Amazon has taken steps to reduce its reliance on third-party logistics providers by expanding its in-house delivery capabilities. The launch of Amazon Logistics, a service that uses independent contractors to deliver packages, is a testament to this strategy. This move has enabled Amazon to exert greater control over the delivery process and reduce costs.
However, this expansion has not been without controversy. Amazon’s use of independent contractors has sparked debates about labor practices and the gig economy. Critics argue that Amazon’s business model places financial and physical burdens on its delivery drivers, who are often classified as independent contractors rather than employees. This classification exempts Amazon from providing benefits and protections typically afforded to employees, such as health insurance and minimum wage guarantees.
Amazon Web Services: The Backbone of the Internet
Dominating Cloud Computing
Amazon Web Services (AWS) has emerged as one of the most significant contributors to Amazon’s success. As the leading provider of cloud computing services, AWS powers a vast portion of the internet, supporting everything from startups to large enterprises. Its services include computing power, storage, databases, machine learning, and more.
AWS’s dominance in cloud computing has had a profound impact on the tech industry. By providing scalable and cost-effective solutions, AWS has lowered the barriers to entry for new businesses, fostering innovation and entrepreneurship. Companies no longer need to invest heavily in physical infrastructure; instead, they can rent the necessary resources on demand from AWS.
Economic Impact and Innovation
The success of AWS has not only boosted Amazon’s financial performance but also contributed to the broader U.S. economy. AWS has created jobs, driven innovation, and supported the growth of numerous tech companies. Its services have become integral to the operations of many businesses, from streaming services like Netflix to financial institutions and government agencies.
AWS’s role in advancing technologies such as artificial intelligence and machine learning has also been significant. By making these technologies accessible through cloud services, AWS has enabled companies to develop new applications and services that were previously out of reach. This has spurred growth in sectors such as healthcare, finance, and entertainment.
Amazon’s Influence on Entertainment and Media
Amazon Studios and Prime Video
Amazon’s foray into the entertainment industry began with the launch of Amazon Studios and Prime Video. These platforms have become key players in the streaming wars, competing with giants like Netflix, Disney+, and HBO Max. Amazon Studios produces original content, including critically acclaimed series like The Marvelous Mrs. Maisel and The Boys, as well as feature films.
Prime Video, available as part of the Amazon Prime membership, has become a major driver of subscriber growth. By offering a mix of original content and licensed programming, Amazon has been able to attract a diverse audience. The company’s investment in high-quality content has not only boosted its streaming service but also positioned it as a significant player in Hollywood.
Impact on the Publishing Industry
Amazon’s origins as an online bookstore continue to influence the publishing industry. The company has become the largest bookseller in the world, both in physical books and e-books. The Kindle, Amazon’s e-reader, revolutionized the way people consume books, making digital reading mainstream.
However, Amazon’s dominance in the book market has raised concerns among publishers and authors. The company’s pricing strategies and negotiation tactics have led to disputes over revenue sharing and control. Amazon’s influence over the publishing industry extends to self-publishing, where its Kindle Direct Publishing platform allows authors to bypass traditional publishers and reach readers directly. While this has democratized publishing, it has also led to an oversaturation of the market and challenges in quality control.
Challenges and Criticisms
Regulatory Scrutiny
Amazon’s immense size and influence have made it a target for regulatory scrutiny. In the U.S. and abroad, lawmakers and regulators have raised concerns about the company’s market power, labor practices, and treatment of third-party sellers. Antitrust investigations have been launched to determine whether Amazon engages in anti-competitive behavior, such as favoring its own products over those of third-party sellers on its platform.
The company’s expansion into various industries has also led to concerns about its dominance and potential to stifle competition. Critics argue that Amazon’s control over data, logistics, and retail gives it an unfair advantage, making it difficult for smaller companies to compete. In response, there have been calls for greater regulation and even the potential breakup of Amazon into smaller entities.
Labor Practices and Workers’ Rights
Amazon’s labor practices have come under intense scrutiny, particularly in its fulfillment centers and delivery network. Reports of grueling working conditions, high injury rates, and inadequate breaks have sparked widespread criticism. Workers have organized protests and strikes, demanding better pay, safer working conditions, and the right to unionize.
The company’s use of technology to monitor and manage workers has also raised ethical concerns. Amazon’s reliance on algorithms to track productivity and enforce performance targets has been criticized for creating a dehumanizing work environment. The company’s resistance to unionization efforts has further fueled debates about workers’ rights and corporate responsibility.
Environmental Impact
As one of the largest companies in the world, Amazon’s environmental impact is significant. The company’s vast logistics network and rapid delivery services contribute to carbon emissions and packaging waste. Amazon has faced criticism for its role in driving consumerism and its contribution to environmental degradation.
In response, Amazon has pledged to become more sustainable. The company launched the Climate Pledge in 2019, committing to reach net-zero carbon emissions by 2040. Amazon has also invested in renewable energy, electric delivery vehicles, and sustainable packaging. While these efforts are a step in the right direction, critics argue that more needs to be done to address the environmental impact of the company’s operations.
