If I got into at-fault collision accident, who is responsible for paying the storage costs?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If I got into at-fault collision accident, who is responsible for paying the storage costs?

I put in a claim the next morning, as my policy includes collision coverage. Meanwhile, the car has been towed away to a tow yard and has been incurring storage costs. The insurance company claims that they are not liable for the storage costs that have incurred because storage fees are not part of the coverage. But it took them 10 days just to get an appraiser to come and look at it. I have no other place I can move the car to and have made that clear to the claim representative. Will I still be liable for the storage costs? If so, what can I do while the true value of the car is still being negotiated and I have no available spot to take my car?

Asked on January 24, 2015 under Accident Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Your insurer only needs to pay when and to the extent the policy says they do: the policy is a contract, and they are bound by its terms, but do not need to go beyond their terms. If you feel they unnecessarily dragged their feet, you could in theory sue them for breach of contract and breach of the covenant (requirement) of good faith dealings in contracts to get reimbursement for the amount of days they unreasonably delayed, if you can show that the delay was unreasonable. For example, if they should have come by 6 days earlier, you could possibly sue for days' storage charge (though it may not be economically worthioe to do it).

Otherwise, the at-fault person would be responsible for the costs, though if another person (not you) were at fault, you'd have to pay the costs up front, then seek reimbursement.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption