Between the shock of an accident and the flurry of insurance calls that follow, towing and storage fees are easy to overlook, right up until an unexpected bill shows up weeks later. These costs can add up quickly, and knowing who's typically responsible for paying them can save you from an unpleasant surprise.
Why Towing and Storage Fees Happen
After a collision, if your vehicle isn't drivable, it usually needs to be towed from the scene, either to a repair shop, an impound lot, or a storage facility while the insurance claim is being processed. Storage fees then accrue daily until the vehicle is released, repaired, or the claim is resolved. Because these charges are often billed separately from the tow itself, they can pile up fast if a claim takes longer than expected to sort out.
Who Typically Pays for Towing
Responsibility for towing costs generally depends on who was at fault and what coverage is in place:
- If another driver was at fault, their liability insurance is typically responsible for reasonable towing costs as part of your overall property damage claim.
- If you were at fault, towing may be covered under your own collision coverage, though this depends on your specific policy.
- If fault is disputed, you may need to pay upfront and seek reimbursement once liability is determined, or rely on your own insurance in the meantime.
- Police-ordered tows from an accident scene sometimes go to a specific tow company chosen by law enforcement rather than one you select, which can affect pricing and where your vehicle ends up.
Why Storage Fees Can Escalate Quickly
Once a vehicle arrives at a storage facility, daily fees typically start accruing immediately, and they don't pause while an insurance company takes its time evaluating the claim. Common reasons storage fees spiral include:
- Delays in the insurance company assigning an adjuster to inspect the vehicle
- Disputes over fault that stall the claims process
- Confusion over which insurer is responsible for authorizing next steps
- The vehicle owner being hospitalized or otherwise unable to respond quickly
If your accident left you dealing with a serious injury claim, it's understandable that towing paperwork isn't the first thing on your mind, but delays can mean a storage bill that's grown substantially larger by the time everything gets sorted out.
Steps to Minimize Towing and Storage Costs
A few proactive steps can help keep these costs from spiraling:
- Ask the tow company where your vehicle is being taken and get a receipt or reference number
- Notify your insurance company about the accident and tow as soon as reasonably possible
- Ask the storage facility directly what the daily rate is and whether fees are being waived pending the claim
- Request that the insurer expedite the total loss or repair decision to limit how long storage fees accrue
- Keep all towing and storage receipts, since these are typically reimbursable as part of your claim
How Towing Fees Fit Into a Total Loss Claim
If your vehicle ends up being declared a total loss, towing and storage fees are usually factored in separately from the actual cash value payout for the vehicle itself. Some insurers deduct outstanding storage fees directly from the settlement, so it's worth confirming exactly how these costs are being handled before finalizing anything.
Rental Costs Often Come With the Same Delays
Towing and storage disputes frequently overlap with rental car issues, since both are byproducts of the same claims-processing delays. If you're also without a vehicle while this gets sorted out, it's worth understanding rental car coverage after an accident so you're not caught paying out of pocket for two separate inconveniences at once.
Frequently Asked Questions
Can a storage facility refuse to release my car until fees are paid?
In many places, yes, storage facilities can place a lien on a vehicle for unpaid fees, which is part of why it's important to address the claim promptly rather than letting storage charges accumulate unchecked.
Will my insurance company automatically pay towing and storage fees?
Not always automatically. It's often necessary to submit the towing and storage receipts directly and confirm with the adjuster that these costs are being included in your claim.
What if I can't afford to pay storage fees while waiting on the insurance company?
Some storage facilities are willing to work directly with insurance companies once a claim number is provided, which can help avoid needing to pay out of pocket while the claim is pending. It's worth asking the facility about this option directly.
If towing and storage fees are piling up faster than your insurance company is responding, an attorney can help push the claims process along and make sure these costs are properly accounted for in your final settlement.