Will the Insurance Company Pay Storage Fees on a Totaled Car After a Wreck?

Last Updated on December 19, 2025

If your car is declared a totaled automobile after a wreck, it usually can’t just sit where it ended up. It may be towed to an impound lot, body shop, or storage yard while the insurance company investigates and determines the total-loss payout. That’s where storage fees can pile up fast—sometimes by the day, sometimes with additional gate, admin, or “notification” charges.

The good news: in many situations, insurance may pay reasonable towing and storage fees tied to a covered claim. The bad news: that coverage is rarely unlimited. If delays happen—or the car sits in a high-fee yard longer than necessary—you could be stuck with part of the bill. Here’s how storage fees typically work and how to protect yourself.

Key Takeaways

Insurance may pay towing and storage fees after a total loss, but coverage is usually limited to “reasonable” charges and a reasonable timeframe.
Storage fees can grow fast—locate the vehicle immediately, confirm coverage with the adjuster, and request a move to an insurer-approved lot if needed.
If the insurer makes a settlement offer or asks to move the vehicle, delays can shift some storage costs back to you—get authorizations and instructions in writing.
If there’s a dispute, stop the storage clock first (move/release the vehicle), save receipts, and escalate with documentation.

Table Of Contents

Why storage fees happen after a total loss
Will the insurance company pay storage fees?
The most important rule: stop the storage “clock” quickly
What if the other driver caused the crash?
If the insurer won’t pay: how to handle it
FAQs on Storage Fees for a Totaled Car
Bottom line

Why storage fees happen after a total loss

When a vehicle is a total loss, the claim process can take days (or longer) because an adjuster has to inspect the vehicle, confirm options and condition, and calculate the settlement. If you’re new to the process, this overview explains what happens if your car is a total loss.

During that window, the vehicle needs to be somewhere secure. Storage yards and impound lots charge for that space—and they typically won’t release the vehicle until charges are paid or an insurer provides written authorization.

Will the insurance company pay storage fees?

Often, yes—but with important limits. Whether storage is covered depends on:

Whose policy is paying (your insurer under collision/comprehensive vs. the other driver’s insurer in a liability claim).
Whether the claim is accepted and not denied or limited due to coverage issues. (Here’s how and why insurers can deny a claim.)
How long the vehicle sits and whether the insurer considers the charges “reasonable.”
Your actions—especially whether you helped prevent unnecessary fees by moving the vehicle promptly when asked.

Even when insurance does pay storage fees, it’s usually only for a reasonable period while the claim is being handled. Once the insurer has made a settlement offer (or once they request to move the vehicle to a lower-cost location), they may limit what they’ll pay if the car remains in expensive storage.

The most important rule: stop the storage “clock” quickly

Storage bills can balloon because total loss claims don’t always wrap up immediately—especially if there’s a coverage investigation, missing paperwork, or negotiation over the vehicle value. If you’re concerned about delays, read how long an auto insurance claim can stay open and assume storage fees keep accruing until the vehicle is moved or released.

To minimize the chance you pay out of pocket, take these steps as soon as possible:

Find out exactly where your car is (impound lot, tow yard, body shop, insurer yard) and ask what the daily rate is.
Call your insurer the same day (or next business day) and ask: “Are towing and storage covered for my claim, and for how long?”
Request a move to an insurance-approved lot if the current facility is expensive. Ask the adjuster to email or text confirmation.
Remove personal items ASAP (bring ID and proof of ownership). Many lots won’t allow you to remove parts, but personal property is usually allowed.
Get everything in writing: who authorized towing, where it’s going, and the date/time approval was given.

If you’re trying to understand what your adjuster can (and can’t) do, it helps to know what claims adjusters do—and why they may push to move the vehicle quickly once a total loss is likely.

What if the other driver caused the crash?

If another driver is responsible, their insurer may reimburse reasonable towing and storage as part of the property damage claim. But third-party claims can take longer because liability must be accepted first. Even if you weren’t responsible, you still want to minimize extra charges. (If you were found responsible, this guide explains what happens when you’re at fault and why your own coverage may matter more for faster handling.)

If the insurer won’t pay: how to handle it

If your insurer (or the other driver’s insurer) says they won’t cover the full storage bill, don’t panic—but do act quickly.

Ask for the reason in writing (coverage denial, unreasonable delay, excessive daily rate, or lack of authorization).
Request a supervisor review and provide proof you acted promptly (call logs, emails, photos, storage receipts).
Move the vehicle immediately to stop the fees from growing, even if that means paying a portion now and disputing later.
Keep all receipts if you pay anything to release or move the car—sometimes reimbursement is possible later depending on coverage and fault.

In some cases, paying to get the vehicle released can be the cheapest move long-term (especially if the daily rate is high). If you’re weighing when it makes sense to pay expenses yourself, this guide helps: when should you pay out of pocket?

FAQs on Storage Fees for a Totaled Car

Does insurance automatically pay storage fees on a totaled car?

Not automatically. Many policies will cover reasonable towing and storage tied to a covered claim, but the amount and time period can be limited. Coverage also depends on whether the claim is accepted and whether the fees are considered reasonable for your area.

How long will an insurer pay storage fees after a wreck?

It varies, but insurers commonly pay storage only while the claim is actively being evaluated and the next steps are reasonable. Once the insurer has made a settlement offer or asks to move the vehicle to a lower-cost facility, they may limit what they’ll cover if the vehicle stays in expensive storage.

Can the insurance company refuse to pay part of the storage bill?

Yes. Common reasons include excessive daily rates, long delays in moving/releasing the vehicle, lack of authorization, or a coverage dispute/denial. If that happens, ask for the reason in writing and provide documentation showing you acted promptly.

What if the tow yard won’t release my car without payment?

Tow yards and storage facilities often require payment or written authorization before releasing a vehicle. Ask the insurer to send authorization directly to the facility. If needed to stop fees from growing, you may choose to pay to release/move the car and then request reimbursement (depending on coverage and fault).

If the other driver was at fault, will their insurance pay storage fees?

Often they may reimburse reasonable towing and storage as part of the property damage claim, but it can take time because liability must be accepted. Even in a not-at-fault situation, it’s smart to move the vehicle quickly to avoid charges that the insurer later calls “unreasonable.”

Can I move the vehicle to a different lot or my home?

Usually, yes—if the vehicle is drivable and the current facility allows release. Many insurers prefer moving the vehicle to an approved yard or partner facility to control costs. Always confirm the move with the insurer first and get written approval if you expect them to cover towing.

What should I document to avoid getting stuck with storage fees?

Take photos of the damage and the vehicle location, keep the tow ticket and storage paperwork, and save all emails/texts with the insurer showing when you notified them and what they instructed you to do. If you pay anything, keep receipts and ask for an itemized bill from the storage facility.

Bottom line

Insurance often covers towing and storage in total-loss situations—but usually only for a reasonable amount of time and only when the claim is covered and handled promptly. The fastest way to protect yourself is to locate the vehicle, confirm storage coverage, and get the car moved to an insurer-approved facility before fees pile up.

If your insurer is consistently unhelpful or slow, it may be worth comparing alternatives once this claim is resolved. Here’s how to switch auto insurance companies without making common mistakes.