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Towing and Storage Fees After a Car Accident: Who Pays, and How to Stop Daily Charges

By AutoInsuranceBundle.pro · Published November 1, 2026

Short answer: After a crash, your collision coverage usually pays reasonable towing and storage charges for your car, and your insurer may move it to a cheaper location. If another driver was at fault, their liability insurer should pay these costs as part of your property damage claim. Storage is billed daily, so report the claim and the car's location to the insurer right away and ask for an itemized bill.

After a crash, a car that can't be driven usually leaves the scene on a tow truck. That's often the last thing on anyone's mind at the time. A week later, the storage yard bill can be a shock. Storage is usually charged by the day, and it keeps running while adjusters schedule inspections, debate fault, or decide whether the car is a total loss. Knowing who pays and how to stop the meter can save hundreds of dollars.

The short video below covers the basics in about half a minute. It uses licensed stock footage of tow trucks and parking lots, not footage of any real crash. The full guide follows.

Who pays for towing and storage after an accident?

Some policies also include towing and labor coverage or roadside assistance. These are usually small add-ons that can help with the first tow even when no collision claim applies.

An important detail: insurers generally pay storage that is "reasonable." If you leave the car in an expensive yard for weeks after the insurer asked to move it, the extra days may not be reimbursed. In a third-party claim, the other driver's insurer has no contract with you. The Illinois Department of Insurance notes that the other insurer's primary obligation is to its own policyholder. That's one reason many drivers file under their own collision coverage to keep things moving.

Are towing and storage fees regulated?

In many places, yes, but the rules vary widely by state and city. Some states regulate fees at licensed storage facilities. Many cities set rates for police-ordered tows. Texas is a useful example of how specific these limits can be. According to the Texas Department of Licensing and Regulation, licensed vehicle storage facilities in Texas:

• May charge a daily storage fee of up to $22.85 for vehicles 25 feet or shorter, and up to $39.99 for longer vehicles.
• May charge only one day of storage if the car is picked up within 12 hours.
• May charge a notification fee of $50 and an impound fee of $22.85.
• May not charge for some extras, such as environmental fees or a fee to access personal property.
• Must accept cash, debit cards, and credit cards.
• May charge only five days of storage if they fail to send required notice to the owner.

TDLR also lists a $272 maximum for many private-property tows of lighter vehicles. Your state's rules may be very different, so check your state's towing regulator, consumer protection office, or city towing rules. An itemized bill makes it much easier to spot charges that exceed a cap.

How to stop storage fees from piling up

1. Find out where the car is. Ask the police officer, the tow driver, or the police non-emergency line for the yard's name and address.
2. Report the claim quickly and give the adjuster the yard's details. Many insurers will arrange to move the car to a repair shop or an insurer-contracted lot.
3. Ask the yard for an itemized bill listing towing, daily storage, administrative, and any other fees.
4. Remove personal belongings as soon as you can. Bring ID, registration, and proof of ownership.
5. Authorize the move in writing if the insurer asks. Delays in signing paperwork can add days.
6. If the car is a total loss, sign the title or release paperwork promptly and ask the adjuster for the date their storage payments end.

Disputing a tow or storage bill

If a charge seems excessive, ask the yard to explain it in writing and compare it with any published rate limits. Pay to release the car if needed and keep the receipt, because insurers and regulators usually want proof. You can then ask your insurer to negotiate, request reimbursement through the at-fault driver's insurer, or file a complaint with the state or local agency that regulates towing.

Keep every receipt, including rideshare costs and rental car bills. Those may be part of a property damage claim against an at-fault driver, depending on state law and coverage.

If you're not sure your policy includes collision or towing coverage, a licensed agent can review options with you. Call (888) 217-5854 for free quotes.

FAQ

Does car insurance pay for storage after an accident?

Usually yes, if the claim is covered. Collision coverage or the at-fault driver's liability insurer typically pays reasonable storage, but not unlimited days.

Who pays storage if the other driver was at fault?

The at-fault driver's liability insurer should pay as part of your property damage claim. While fault is disputed, your own collision coverage can pay first.

Can a tow yard keep my car until I pay?

In many states, a storage facility can hold the car until fees are paid. Rules on release and payment vary, so check your state's laws.

How much can a storage yard charge per day?

It depends on the state and city. In Texas, for example, TDLR sets a daily maximum of $22.85 for vehicles up to 25 feet long at licensed storage facilities.

What if my car is a total loss and still in storage?

Tell your insurer immediately and complete the total loss paperwork quickly. Ask when the insurer will stop paying storage, so you aren't billed for the extra days.

Questions about your coverage? Call a licensed agent at (888) 217-5854 to compare free quotes.

Important: This article is general information, not legal, tax, or insurance advice, and coverage rules vary by state, insurer, and policy. AutoInsuranceBundle.pro is a free, independent insurance comparison and referral service. We are not an insurance company, we do not issue policies, and we do not provide insurance advice. Calls to the number on this site are routed to licensed insurance agents or agencies in our partner network, who may receive compensation. Calling is completely voluntary and there is no obligation to buy. Rates, discounts, and availability vary by carrier, state, and individual eligibility; not all carriers, products, or discounts are available in all states. Calls may be recorded for quality and compliance purposes.