Yes, the insurance covers towing and treats it as a repair cost.
We will pay up to US$ 500 for any rental fees charged by the Rental Company for which You are liable during a period for which the Rental Vehicle is unable to be used by You and for any related towing costs including any additional costs incurred by You arising from the breakdown of the Rental Vehicle for You to travel home or to Your destination, as long as those fees or costs are the result of accidental damage or theft.
The CarInsuRent insurance plan also includes a $500 allowance to cover the cost of returning the rental car to the nearest station if an attending medical personnel provides a written certification stating that you are medically unfit to drive.
Please see the Product Disclosure Statement (PDS) for the complete terms and conditions.