No driver wants to be in the position where they see another car barreling towards them out of control, but accidents do happen on the road. In fact, some states average 400,000 accidents per year which goes to show how common this event unfortunately is. Something that is often overlooked in the aftermath of an accident, though, is the cost associated with towing a vehicle. Towing is often necessary due to damage on one or more vehicles, but the full cost of this job isn’t just the transportation. There are several hidden expenses that can quickly add up. Learn everything you need to know about these hidden costs, what they are, whether they are covered, and how to avoid them in the first place.
Understanding Standard Towing Fees
The first cost you are likely to pay and also the cost you are likely most familiar with is the standard towing fee. This standard fee covers the following:
- Hook-up fee: The base charge for attaching your vehicle to the tow truck.
- Per-mile charge: Costs vary based on distance (e.g., $3-$7 per mile).
- Special vehicle fees: Additional costs for large vehicles, motorcycles, or heavily damaged cars.
However, no two truck companies will price their services the same way which means you already might see varying costs. Additionally, the distance from the scene of the accident to the closest tow yard or repair shop can be quite far which can cause the price to skyrocket. Believe it or not, some companies will also charge higher rates for late-night or weekend tows which can lead to increased fees as well.
Keep in mind that standard towing fees are just that: standard. They are the tip of the iceberg with costs only getting increasingly more expensive from this point on, which is why you want to act as soon as possible after your car is towed in order to reduce the amount you need to pay.
Storage Fees: The Longer It Stays, the More You Pay
Few people are aware of the fact that your vehicle is not being stored for free at an impound lot, even if it is totaled to an extent. Many impound lots charge somewhere between $20-$100 per day that your vehicle is stored there, with fees beginning immediately once the car is towed. For perspective, San Francisco charges those who have had their vehicle towed $77 per additional day their vehicle is stored, going to show a sample rate for one of the largest cities in the country.
Additional storage fees that you may also find yourself facing include “gate fees” which require you to pay to retrieve your vehicle if it is after hours as well as release fees when you actually retrieve the vehicle. In the event that the towing of your vehicle was actually police-ordered, there may also be an additional charge thrown on top simply due to the involvement of law enforcement.
Be aware that if you don’t pay the fees that are required of you, your vehicle may be auctioned off the lot in order to recover costs. State laws vary on how long a lot must wait before selling an unclaimed vehicle, but the amount of time is widely not as long as you might think which is why you need to act quickly.
Administrative and Processing Fees
In addition to storage fees and the initial towing fee, you will likely also find yourself facing administrative and processing fees. These are charges that are tacked on by towing companies for services such as debris removal or clean up of hazardous materials. For example, if the car accident you were involved in caused oil or sensitive vehicle fluids to leak on the road, the towing company may be obligated to deal with it. This is a cost they will pass down to you.
Additionally, you will also likely be required to pay fees related to paperwork, vehicle release forms, or verification of the title on your vehicle. As mentioned earlier, the involvement of law enforcement can come with additional fees. From a processing standpoint, when law enforcement calls the tow company to get the vehicle out of the location, you have no say in which company will be used. Some tow companies actually charge higher fees under police contracts as a result.
Insurance Coverage vs. Out-of-Pocket Costs
Another factor to consider is the balance between insurance and out-of-pocket costs that you will need to keep in mind. Certain collision and comprehensive policies can cover towing costs but within limits. Many policies reimburse rather than just paying upfront which is another thing to keep in mind. There will also be situations where insurance won’t cover what occurred.
For example, liability-only coverage does not include towing, and delayed claims processing can result in out-of-pocket payments. Don’t forget as well that if another driver caused the accident then their insurance should cover the towing and storage, so don’t be fooled into paying when you don’t need to. Also, without insurance, any and all towing, storage, and processing fees will need to be covered out-of-pocket. If your vehicle is totaled you may even still owe fees if you choose not to retrieve your car.
Avoid burning a hole in your wallet
All of the above-hidden costs can leave you reeling and cause a burning hole in your wallet if you aren’t careful. Fortunately, by knowing what to expect and taking immediate action to reduce costs you can mitigate this issue. Always check your insurance policies to understand what your towing coverage options are, and have a rainy day fund in place to cover any expenses that you may be required to pay out-of-pocket. If you are ever in doubt, ask a towing company about fees before they take your vehicle and request a different company if you can.
