Most people think about the tow for about five minutes on the day of the crash. Then the car sits at a yard while the claim is opened, fault is sorted out and an appraiser is scheduled. A week later there is a storage bill, and nobody seems to own it. Here is how that bill usually gets paid and how to keep it from becoming yours.
Who pays for the tow when the other driver was at fault?
The at-fault driver's property damage liability coverage generally pays for a reasonable tow from the scene, because the tow is part of the loss their driver caused. That usually includes:
- The tow from the crash scene to a yard or shop
- A reasonable second tow, for example from the police yard to a repair shop or to the insurer's inspection site
- Reasonable storage while the claim is being handled
If you have towing or roadside coverage on your own policy, it may pay first, and your insurer can seek the cost back later. Either way, keep the receipt with the company name, address and the dates on it.
Why are storage fees such a problem?
Towing is a one-time charge. Storage is charged per day, and some yards add fees for things like after-hours release or moving the car around the lot. A car that sits for several weeks can build a bill that surprises everyone.
Insurers know this, so many of them will try to move a car out of a private yard quickly, or will tell you they will only pay storage up to a certain date. If you get a notice like that, take it seriously. Charges after that date may be argued to be yours.
What if the car was towed by police order?
After many crashes the police call a rotation tow company. You did not choose the company or the rate, and that matters. The at-fault insurer is generally still responsible for reasonable charges. If a police-ordered tow or yard rate looks unusually high, ask the insurer to review it, and ask the yard for an itemized bill. Some cities and states regulate rotation tow rates, so it can be worth checking whether a cap applies where you live.
How do I stop storage fees from piling up?
You have more control here than you might think. Do these in order:
- Find the car. Get the yard's name, address, phone number and hours. Ask what the daily rate is and what they need to release it.
- Tell the at-fault insurer where it is, in writing, the same day. Include the yard details and ask when they will inspect or move it.
- Ask what their deadline is. Many insurers will name a date after which they will not pay storage. Get that date in writing.
- Get your personal items out. Do this early. You may need ID and proof of ownership.
- Authorize a move if they ask. If the insurer wants to move the car to its own facility or a shop, sign the release they send promptly unless you have a good reason not to.
- If fault is still disputed, consider having the car moved to a shop you choose, or using your own collision coverage, so storage stops growing while the argument continues.
- Keep every receipt and the itemized bill. You may be paying something up front and claiming it back.
What counts as a reasonable towing or storage charge?
There is no single number. Insurers usually compare a bill to what other tow companies and yards in the same area charge for the same service. Line items that often draw questions include:
- Mileage charges that look longer than the actual distance
- Labor or "recovery" fees for a car that simply rolled onto a flatbed
- Administrative, gate or after-hours fees
- Storage charged at an outdoor rate that looks like an indoor rate
If a line looks off, do not argue it on the phone with the yard. Ask for the itemized invoice, send it to the adjuster and ask them to deal with the yard directly. Your goal is to keep the dispute between the insurer and the yard, not you.
What if the insurer says the storage is my fault?
Insurers sometimes argue that storage ran up because the owner did not respond or did not authorize a move. Your best answer is a dated paper trail. If you told them where the car was on day one, and they took ten days to inspect, the delay is not yours. Put that timeline in an email and ask them to pay the charges that accrued while they were deciding.
A short note like this works:
Subject: Claim [number], towing and storage charges Hello [Adjuster name], My vehicle was towed from the scene on [date] to [yard name, address]. I notified your office of its location on [date]. The yard reports storage of [amount] per day. Please confirm: 1. That you will pay towing and storage from [date] onward. 2. The date you will inspect or move the vehicle. 3. Any date after which you will stop paying storage, and why. Itemized invoice attached. Thank you, [Your name] / [Phone]
What happens to storage if the car is a total loss?
If the car is totaled, the insurer usually takes over the vehicle once you accept the settlement and sign over the title, and it handles the yard from there. Before that, storage can still be a sticking point. Ask the adjuster who is paying storage between the total loss decision and the payment, and get the answer in writing.
Watch for one trap: if you are disputing the settlement amount, the insurer may say storage after its offer is your cost. Ask for the car to be moved to the insurer's own facility while you dispute the value, so the disagreement over price does not quietly turn into a growing bill.
What if I already paid the yard to get my car back?
Then you have a claim for reimbursement. Send the at-fault insurer the itemized invoice, proof of payment and a one-line request to reimburse it. If they refuse part of it, ask which charges they consider unreasonable and why.
Towing is rarely the only extra cost. If you were also without a car, see what to do when the at-fault insurer won't pay for a rental. If you used your own coverage and paid a deductible, see getting your deductible back.