Who Pays For Towing And Storage After An Accident

Key Takeaways

• The at-fault driver’s insurance generally pays towing and storage costs after a Texas accident.
• Texas law caps tow charges at $272 and daily storage at $22.85 for standard vehicles.
• Shared fault reduces recovery proportionally, and over 50% fault eliminates claims against the other driver.
• Promptly moving the vehicle and reporting the claim helps minimize accumulating storage fees.
• Legal action, formal demands, or TDLR complaints can address insurers refusing to cover fees.

A car accident leaves behind more than physical damage. Within hours, towing charges and daily storage fees start adding up, and most people have no idea who is supposed to pay them. Who pays for towing and storage after an accident comes down to three things: fault, what insurance coverage exists, and how fast everyone moves after the crash.

Towing and storage costs usually fall to the at-fault driver’s insurer. If you caused the crash, your collision or towing coverage applies; otherwise, you pay out of pocket.

At the Monsour Law Firm, we help accident victims understand exactly where they stand and fight to recover every cost the crash created. Talking to a car accident lawyer in Tyler, TX, early keeps you from losing money you should never have had to spend.

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Understanding Towing and Vehicle Storage Fees

According to the Texas Department of Licensing and Regulation, towing operators and vehicle storage facilities in Texas must hold a license and follow state-regulated price limits on what they can charge. For a standard passenger vehicle under 10,000 pounds, the maximum tow charge is $272, and the regulated daily storage rate is $22.85 per day following a 2023 update to Texas state fee limits.

Knowing these legal maximums helps accident victims identify and challenge any billing that goes beyond what Texas law allows.

Determining Responsibility for Post-Accident Vehicle Fees

Fault determines who covers towing and impound costs after a car accident. Texas law requires every driver to carry liability coverage, meaning the driver who caused the crash is responsible for the other person’s losses, including towing and storage costs.

The Texas Department of Insurance confirms that liability coverage pays for damage the at-fault driver causes to others, which places the financial responsibility squarely on their insurance company. Shared fault complicates things. Texas law reduces what you can collect based on your percentage of blame. Cross the 50% threshold, and you lose the right to recover anything from the other driver at all.

Related reading: When Should You Call A Lawyer After A Car Accident

Strategies to Avoid Excessive Storage and Towing Costs

The single biggest mistake people make after a car accident is leaving their vehicle in a tow yard longer than necessary. Every day the vehicle sits there, the bill grows. Taking the right steps early keeps those costs from spiraling:

• Move the vehicle out quickly. Get the vehicle out of the tow yard as soon as the insurance company finishes its inspection. Every additional day adds to the bill.
• Report the claim immediately. Contact the at-fault driver’s insurance company right away and push for an adjuster visit as quickly as possible.
• Contact your own insurance company: If you provoked the accident yoy need to act fast and get an adjuster assigned.
• Document everything from the start. Keep all receipts, rate notices, and facility correspondence from the start. These records compel insurers to reimburse disputed costs.

How the Insurance Investigation Impacts Fee Coverage

Most people assume the insurance company cuts a check once the crash is reported. That is not how the process works. The insurance company first investigates the accident, determines who caused it, and then reviews the vehicle damage before agreeing to pay anything.

Storage fees keep running the entire time. Once the insurance company agrees it owes you, most will cover reasonable storage costs.

What to Do if the Insurance Company Refuses to Pay Towing or Storage Fees

Refusing to cover towing and storage fees after a car accident does not mean the fight is over. Several options remain available:

• Hire a car accident attorney: Lawyers clarify your next steps, issue formal demands, document accrued fees, and compel insurers to provide recorded responses.
• Send a formal written request for payment: A formal demand letter outlining every charge creates a paper trail the insurance company cannot ignore.
• File a complaint with the Texas Department of Licensing and Regulation: If the storage facility charged more than Texas law allows, a TDLR complaint creates a separate avenue to challenge that billing directly.

How Monsour Law Firm Can Help You

The question of who pays for towing and storage after an accident has a clear answer when someone fights for it. Call the Monsour Law Firm in Tyler, TX at (903) 999-9999 for a free case review and find out exactly what you are owed.