can insurance company deduct money from settlement to cover storage fees at a garage?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Mar 25, 2016

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Insurance Question from Staten Island, NY

Asked on 03/25/2016

can insurance company deduct money from settlement to cover storage fees at a garage? Auto involved in accident 3/5/16. Other drivers company took 100% responsibility. They tried to get me to move car to their garage. When I refused they said they would only pay storage until 3/16. We didn't reach settlement until 3/23. Now company wants to deduct from settlement for the extra days from 3/16 to 3/23. Can they do this?

Answer given on March 25, 2016

If you have an auto accident and the other driver’s insurance company takes responsibility, then they can set limits on parts of the settlement they offer.It’s not clear if you were going to use a different repair garage than the one they wanted, but if you were going to use theirs, you should have been willing to move the car. If you were going to use a different garage, you should have tried to work with that garage to take the car while settlement was being resolved.The insurance company clearly told you they would only pay storage til March 16th. Since it was not settled by then you should have either moved your car or tried to get them to extend the storage time. Storage fees are usually very high, so it is understandable that the insurance company would not continue to pay them if it was avoidable.

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