2 min read
If your vehicle sustains severe damage in a car accident and is unsafe or undrivable, you may need to have it towed to a storage facility. In many cases, you’ll need to find another transportation option while your vehicle is being repaired.
A popular option is to get a rental car. Here are a few common questions and answers about rental cars and storage fees after an accident:
Will my insurance cover towing and storage fees after an accident in Minnesota?
It depends on your policy. Even if you have towing and storage coverage, insurers will only pay for as long as they consider reasonable, so you’ll want to act quickly.
Storage fees can be expensive, and you must use reasonable care and diligence to minimize your damages. If the insurance or storage company decides that your vehicle has been in storage too long, you may be stuck with the bill—or be unable to get your vehicle back in extreme cases.
How long can I leave my car in a tow lot or storage yard?
Most insurers expect you to get your vehicle within a week or two. In Minnesota, storage facilities can begin the lien and auction process in as little as 30 to 45 days. Insurance companies in Minnesota also have up to 30 days to investigate a claim, which means your car could be sitting in storage the entire time.
Every day that your car is in a storage, tow lot, or salvage yard means another day of fees. It’s your responsibility under the law to try to mitigate or limit your damages, so get your car out of impound as quickly as possible.
If you need extra time, check with your insurance company. They may be willing to make an exception for a reasonable excuse.
Steps to minimize storage fees after an accident in Minnesota
Acting quickly after your car is towed can save you money:
- Contact your insurance company on the same day as the accident to report the tow and the storage location.
- Ask the storage or tow facility for their daily rate and their lien or auction timeline.
- Retrieve your personal belongings from the vehicle as soon as it is safe to do so.
- Request a vehicle inspection or appraisal from your insurer promptly.
- Keep all receipts for towing, storage, and alternate transportation. These costs may be recoverable as part of your overall claim.
- If you have collision coverage, consider using it to expedite the property damage process rather than waiting on the at-fault driver's insurer.
Can I get reimbursed for a rental car after an accident?
Yes, if you have rental reimbursement coverage on your policy. Without it, reimbursement depends on the at-fault driver's insurer accepting liability.
If your insurance company is covering your rental fees after an accident, you can typically get a rental car that is reasonably comparable to the vehicle that was damaged.
Specific needs, like extra room for child car seats, are also generally approved. Upgrades, however, typically aren’t.
How long will my insurance let me keep the rental car?
Your rental coverage ends when your vehicle is repaired, declared a total loss, or you reach the maximum number of days listed in your policy, whichever comes first.
If you want to keep the rental car after your car is repaired or declared a total loss, you’ll have to pay the costs out of pocket. Rental cars can be expensive, and the fees are charged daily, so plan for alternate transportation.
Dealing with insurance companies after an accident is complicated. If you've been injured and have questions about your coverage, storage costs, or rental car options, you can contact us to schedule a free consultation.
