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3 min read

Vehicle Damage and Tow Lots

Vehicle Damage and Tow Lots

After a motor vehicle accident, dealing with injuries is your first priority, but you'll also face the challenging reality of damaged property. You may find yourself under pressure to figure out what to do with the badly damaged or undrivable vehicle that was involved in the accident.

The connection between vehicle damage and personal injury claims is more important than many people realize. Motor vehicle accidents account for over half of all personal injury cases, and the way you handle your property damage can really impact your overall recovery.

Understanding Your Options After an Accident

If you purchased collision coverage for your vehicle then you always have the option of paying your deductible and allowing your insurer to handle any pressing property damage issues.

However, if you decide not to use this or didn't purchase collision coverage, you'll be waiting on the at-fault driver's insurance company. They need to complete their own investigation before paying for your vehicle damage.

Insurance companies have around 30 days to investigate claims, but complex cases can take much longer.

The investigation involves several important steps that can lead to delays:

  • Investigation and Liability: The other insurer needs to decide if they are going to accept responsibility for the accident. In order to gather enough information to make a decision, the insurer may need to:
    • Take statements from all parties involved, including their insured driver, and you (which may need coordination through your attorney's office).
    • Wait for a police report.
    • Review their insured driver's policy for coverage issues.
  • Damage Assessment and Valuation: The other insurer needs to investigate the value of your damage claim by hiring experts, getting estimates, and performing comparisons to other vehicles.

If any issues arise with any of the above, there will almost certainly be a significant delay to your claim. This delay, which could be unavoidable even with representation, isn’t just stressful. It’s also very expensive.

Let’s say that your undrivable damaged vehicle was towed to the Minneapolis Impound Lot. The at-fault driver’s insurance is in the process of investigating the accident. Before the sun goes down on the day of the accident, you will need to pay over $200.00 on a vehicle that you may not even be able to drive any longer. 

Here are the numbers:

  • Standard Tow Charge: $222.00
  • Storage: $18.00 per day
  • Heavy-duty Tow: $204.50 plus winch time at $94.50 per half-hour
  • Notification Letter: $6.00

Just to get your vehicle out of the lot, you will need to pay any/all of those charges to the tow lot, and it gets more expensive to do so with each passing day. If the vehicle is not drivable and you want to recover it, then you will be responsible for the charges from towing it to where you want it to go. The tow lot may also auction or destroy your vehicle if it’s left in the lot for too long.

How Delays Impact Your Personal Injury Recovery

When your vehicle sits in a tow lot while insurance companies investigate, it creates problems beyond the daily storage fees:

  • Getting to Medical Care: Without your car, it's harder to get to doctor appointments and therapy sessions for your injuries from the accident.
  • Preserving Evidence: Important evidence from the crash may be harder to access or document when your vehicle is locked away in storage.
  • Financial Pressure: Daily storage fees add up quickly, pressuring you to accept a lower settlement just to get your car back.
  • Extending Your Case: Vehicle issues can drag out your entire claim, making an already stressful situation last longer.

At this point, it is vital that you make a decision on what you want to do. The at-fault insurer may be weeks or more away from making a decision whether or not they can pay for the damage to the vehicle and the associated tow and storage charges. The fees are piling up.

If you don’t have collision insurance coverage on your damaged vehicle or you don’t want to pay the deductible, you have only two choices. You can wait for the other insurer to make a decision (which may not be favorable to you), or you can pay for the charges yourself and limit your exposure to future fees or the destruction or sale of the vehicle.

If you pay the fees yourself, the other insurer may reimburse you for the money spent if they accept responsibility for the accident at a later date. Keep detailed records of all expenses, as these costs can be included in your overall damage calculation for your personal injury claim.

Protecting Your Rights and Recovery

Deciding whether to pay tow lot fees yourself or wait for the insurance company affects your entire recovery

An experienced personal injury attorney can help you understand how your vehicle damage decision impacts your injury claim and guide you toward the choice that protects your overall interests.

Don't let daily storage fees pressure you into decisions that could hurt your case later.

If you find yourself in need of assistance or advice after your accident, please call the office of Aaron Ferguson Law at 651-493-0426 for a free consultation.

Get a Free Case Consultation

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