The described method and system provide a system and method for efficiently and effectively processing the hierarchical selecting and switching between tolling options associated with a telematics service and tolling a subscriber's account accordingly such that the provision of telematics service to a user of the telematics unit is uninterrupted if possible and the optimal tolling option is utilized. Many different types of telematics services exists, and each telematics service may have a corresponding set of tolling options, including various telematics-based (internal) and network-based (external) tolling options, prepaid and postpaid tolling options, as well as other types of tolling options. The disclosed invention allows the telematics service system to select an optimal tolling option and switch between tolling options without interrupting the provision of service based on a hierarchy of tolling options corresponding to the telematics service requested by the user.