Final answer:
The towing and labor endorsement limit applies per disablement or per incident. This limit specifies the maximum amount an insurance company will pay for each separate incident requiring a tow and associated labor.
Step-by-step explanation:
The towing and labor endorsement limit applies per disablement or per incident. When you have a towing and labor coverage as part of your auto insurance policy, this means that if your vehicle needs a tow due to a breakdown or a similar disablement, the insurance company will cover the costs up to the limit specified in your policy.
An important point to understand is that these limits are there to cap the amount the insurer will pay for each separate incident. Let's say your policy has a $75 towing and labor endorsement limit. If your car breaks down and you need a tow that costs $100, your insurance will cover $75, and you would be responsible for the remaining $25.
If a separate incident occurs where towing is needed again, the policy would cover up to another $75 for the new incident