Last Updated on September 8, 2026
Written by licensed insurance agent Andy walker
Reviewed by the Alias Insurance editorial team.
If your damaged car is sitting in a tow yard, body shop, or storage facility while an insurance claim is delayed, the insurer may have to pay reasonable storage fees when those charges result from a covered loss. An open claim, however, does not guarantee unlimited storage payment.
Who pays usually depends on the coverage involved, who caused the accident, why the car remained in storage, whether the daily rate is reasonable, and the rules in the state handling the claim.
Texas consumer guidance says collision and applicable physical damage coverage may pay reasonable towing and storage after a covered loss. If you carry liability coverage only, you may have to pay your own towing and storage unless another driver caused the crash and that driver’s insurer accepts responsibility. California claim rules require insurers to pay reasonable towing and storage after a covered loss when those costs are reasonably necessary to protect the vehicle. California also requires reasonable notice before storage payments end.
The safest response is to act before the bill grows. Ask the adjuster in writing whether storage is covered, which daily rate the insurer accepts, whether the vehicle should be moved, and the date the insurer plans to stop paying.
Laws vary by state. Check your policy and your state insurance regulator if a storage dispute develops. A quick written request can also prevent later confusion about who approved the storage location and when payment was expected to end. Keep that reply with the rest of your claim records.
Who Usually Pays Car Storage Fees?
| Situation | Who may pay | Main condition |
| Covered collision under your policy | Your insurer | Charges are reasonable |
| Another driver caused the crash | Other driver’s insurer | Liability and coverage are accepted |
| You have liability coverage only | You may pay | Your own vehicle damage is usually not covered |
| Insurer needs more time to inspect | Insurer may remain responsible | Storage is still necessary |
| Car is declared a total loss | Insurer may pay through a reasonable cutoff date | Notice and state rules may apply |
| You ignore a reasonable move request | You may pay later charges | Added storage may be avoidable |
The key word is reasonable. Insurance rules often focus on whether both the amount and length of storage were justified.
Why Do Storage Fees Grow During a Claim Delay?
Storage facilities may charge by the day while a damaged vehicle remains on their property. Charges can continue while an insurer checks coverage, investigates fault, sends an appraiser, reviews repair estimates, or decides whether the vehicle is a total loss.
Texas provides a useful example because its Department of Licensing and Regulation publishes charges for regulated vehicle storage facilities. Its guidance lists daily storage of $22.85 for vehicles 25 feet long or less and $39.99 for vehicles over 25 feet. It also lists a one time impoundment fee of $22.85 and a one time notice fee of $50.
| Example daily rate | 15 days | 30 days | 60 days |
| $22.85 | $342.75 | $685.50 | $1,371.00 |
| $50 | $750 | $1,500 | $3,000 |
| $100 | $1,500 | $3,000 | $6,000 |
The $22.85 figure reflects the Texas regulated facility guidance cited above. The other rows are math examples, not national averages.
Does Your Own Car Insurance Pay Storage Fees?
Your insurer may pay storage when the vehicle damage is covered and the storage is reasonably related to the loss.
Collision coverage is one example. If you hit another vehicle or object and the loss qualifies under collision coverage, reasonable towing and storage may be included in the claim.
Theft, fire, vandalism, weather, or another covered event may also lead to towing and storage payment under applicable physical damage coverage. The exact terms depend on your policy.
California’s Fair Claims Settlement Practices Regulations state that an insurer must pay reasonable towing and storage charges incurred after a covered loss when those charges are reasonably needed to protect the vehicle from further loss. The rule also addresses notice before storage payment ends.
Coverage of the accident does not guarantee payment of every charge. An insurer can still review whether the rate, location, and storage period were reasonable.
Who Pays If the Other Driver Caused the Crash?
If another driver caused the accident, that driver’s liability insurer may pay reasonable towing and storage as part of your property damage claim.
Texas insurance guidance says the other driver’s insurer might pay reasonable towing and storage when the other driver caused the accident.
Payment can still be delayed while the company checks fault, policy status, coverage, and possible shared responsibility.
If you have collision coverage, ask your own insurer whether you can file under your policy instead of waiting for the other company. Your insurer may later seek reimbursement through subrogation.
What If You Have Liability Coverage Only?
Liability coverage generally pays covered injury and property damage claims made against you. It does not normally pay for damage to your own car after a crash you caused.
Texas consumer guidance says a driver with liability coverage only will have to pay the driver’s own towing and storage bill. If another driver caused the crash, that driver’s insurer might pay reasonable charges.
Who Pays When the Insurer Causes the Delay?
A delay caused by the insurer can strengthen your position that storage remained necessary, but it does not create an automatic right to every charge.
Massachusetts says an insurance company must pay storage charges until it makes a reasonable offer to settle the claim when there is a dispute over the amount of the claim payment. The state also warns that an owner who does not respond after a reasonable offer may become responsible for later storage fees.
Consider a simple scenario. Your car reaches a body shop on Monday. You report the claim that day. The insurer does not inspect it for ten days even though the shop makes the car available. If the claim is covered, you have a stronger basis for asking the insurer to pay reasonable charges created during that inspection delay.
Now assume the insurer asks on day three to move the car to a secure location where storage will stop. You refuse without a clear reason and leave it at the original yard for another month. The insurer may dispute later charges.
Keep emails, texts, call notes, inspection dates, invoices, and move requests. The timeline can show who controlled the delay.
If communication has stopped, read what to do when your insurance adjuster stops responding.
Can the Insurer Stop Paying Before the Claim Is Closed?
Yes. Storage payment can end before the entire claim is finished.
An insurer may decide paid storage is no longer necessary after inspecting the car, making a reasonable settlement offer, arranging a move, or completing a total loss evaluation.
State notice rules can control how the cutoff happens.
New Jersey says an insurer must give three working days notice before it stops paying storage charges. Its consumer guides state this rule for claims made with your own insurer and claims made with another driver’s insurer.
Virginia requires reasonable notice before automobile storage payment ends and reasonable time for the claimant to remove the vehicle. Illinois also requires reasonable notice and says the claim file should document that notice.
Do not ignore a storage cutoff notice. Ask where the vehicle can be moved and whether the insurer will arrange and pay for the tow.
What Counts as a Reasonable Storage Fee?
There is no single national storage rate that every insurer must accept. Reasonableness can depend on local rates, state limits, vehicle size, facility type, storage length, and whether the car could have been moved sooner.
Ask the facility for an itemized invoice showing daily storage, towing, gate, notice, release, and other fees. Then ask the insurer which charges it accepts. If the insurer calls a rate excessive, ask for the rate it accepts and the basis for that figure.
Texas publishes specific limits for regulated storage facilities. California, Virginia, and Illinois also use reasonableness standards in claim rules.
What Should You Do While Storage Fees Are Growing?
Follow these steps as soon as you know the car is in paid storage.
- Confirm the location and rate. Get the facility name, address, arrival date, daily charge, and current balance.
- Request an itemized bill. Separate towing, storage, notice, gate, release, and other charges.
- Send the details to the insurer. Give the adjuster the claim number, location, rate, and current bill in writing.
- Ask whether the vehicle should be moved. Get the destination, tow arrangement, and payment responsibility in writing.
- Ask for the storage cutoff date. Do not rely only on a phone call.
- Keep a claim timeline. Save emails, texts, photos, estimates, receipts, inspection dates, offers, and invoices.
- Respond to reasonable requests. Provide access, documents, signatures, or permission to move the car as soon as practical.
- Escalate missed responses. Ask for a supervisor or claim manager if the adjuster is not responding.
California consumer guidance says insurers generally must acknowledge a claim and begin investigating within 15 days after notice. It also says they generally must respond to claim communications within 15 days and accept or deny a claim within 40 days after receiving proof of claim, subject to state rules and permitted extensions. Those California time periods are not nationwide deadlines.
What Changes After a Total Loss Decision?
Storage often becomes more urgent after a total loss decision. The insurer may ask to move the car to a salvage facility where daily storage will stop. You may still dispute vehicle value, but leaving the car at an expensive facility can create a separate bill.
Ask whether the inspection is complete, where the car should go, who pays the tow, and the date storage payment ends.
Massachusetts says storage is paid until a reasonable settlement offer is made in the dispute described by its FAQ. New Jersey requires notice before storage payment stops. Virginia requires reasonable notice and time to remove the vehicle.
If the dispute concerns vehicle value, read how to negotiate a total loss car insurance claim.
What If the Insurer Refuses to Pay Storage?
Ask for a written explanation instead of accepting a general statement that storage is not covered.
Request the storage dates the insurer accepts, dates it refuses to pay, the daily rate it considers reasonable, disputed fees, relevant policy language, the first removal request, and any notice provided before payment ends.
Compare that response with your policy, invoices, messages, and timeline.
If the dispute remains, use the insurer’s complaint process and contact the insurance department in the state handling the claim.
How Do State Storage Rules Compare?
| State | Example rule or guidance | Practical effect |
| California | Reasonable towing and storage after a covered loss, plus reasonable notice before payment ends | Ask for the cutoff date in writing |
| Massachusetts | Storage is paid until a reasonable settlement offer in the dispute described by the state | Later costs may shift after an offer |
| New Jersey | Three working days notice before storage payment stops | Gives time to move the car |
| Virginia | Reasonable notice and time to remove the car | Sudden cutoff may conflict with the rule |
| Illinois | Reasonable notice before storage payment ends | Notice should be documented |
| Texas | Reasonable storage may be covered under applicable vehicle damage coverage | Liability only may leave the owner paying |
Example: A 25 Day Claim Delay
Assume another driver hits your car. The car is stored at a shop charging $60 per day while the liability insurer investigates for 25 days. The storage charge reaches $1,500.
| Claim situation | Possible result |
| Insurer accepts fault and agrees storage was necessary | Liability insurer may pay reasonable charges |
| You file under your own collision coverage | Your insurer may pay covered storage and seek recovery |
| Insurer asks for a move on day 10 and you refuse without good reason | Later charges may be disputed |
The key questions are why the claim was delayed, who controlled the delay, and whether the car could have been moved sooner.
Frequently Asked Questions
It can. An insurer may pay reasonable and necessary towing and storage when the vehicle loss is covered. Coverage, fault, policy terms, the storage rate, and state law affect the result.
There is no national number of days. Payment may end after a reasonable cutoff under the policy and state rules. New Jersey requires three working days notice before storage payment stops. Virginia requires reasonable notice and time to remove the vehicle.
Yes. It may dispute charges that are outside coverage, excessive, unnecessary, or caused by avoidable delay. Ask for the approved dates, accepted daily rate, and policy basis in writing.
The responsible driver’s liability insurer may pay reasonable storage after accepting responsibility for covered property damage. If you have collision coverage, ask your own insurer whether filing under your policy could move the claim faster.
Tell the insurer in writing that the car is accumulating daily charges. Request an inspection date, payment decision, move instructions, and storage cutoff date. Keep proof of each contact. Escalate if the delay continues.
Often you can, but ask first when possible. Confirm whether moving it could affect inspection or payment. Photograph the damage, keep the tow receipt, and tell the insurer the new location.
Final Takeaway
Storage fees can become a separate financial problem during a delayed car insurance claim. The insurer may owe reasonable charges when storage results from a covered loss, but payment does not continue forever simply because the claim remains open.
Confirm the daily rate, coverage decision, inspection plan, move request, and cutoff date in writing. Keep records showing which party caused each delay. If the insurer disputes payment, ask for the policy or state rule behind its decision. Since laws vary by state, check the appropriate insurance regulator when the amount is significant.
If you are reviewing coverage after a claim, compare equal limits, deductibles, and vehicle protection options rather than choosing based only on price. Alias Insurance helps U.S. drivers compare car insurance quote options from participating providers so they can review coverage choices before deciding.
Sources and References
- California Department of Insurance Fair Claims Settlement Practices Regulations
- California Department of Insurance Auto Accident and Claim Guide
- Texas Department of Insurance Towing and Storage Guidance
- Texas Department of Licensing and Regulation Vehicle Storage Facility Guide
- Massachusetts Auto Insurance Claim FAQ
- New Jersey Auto Damage Claim Guide
- Virginia Automobile Insurance Claim Settlement Standards
- Illinois Automobile Insurance Claim Settlement Standards
