Insurance company canceled pickup of my totaled car and now wants me to pay for storage…is this right?

I’m stuck in a frustrating situation with my insurance company and could use some help figuring this out. My car was totaled after a recent accident, and I accepted their payout offer. But now they’re saying I need to remove the car from the body shop where it was stored after the crash.

A little background:

  • I gave the shop permission to release the car to the insurance company. They scheduled a pickup but canceled it later, saying the storage fees were too high. Now they’re telling me I need to cover any ongoing fees and move the car myself.

I thought once a car was declared a total loss, the insurance company takes care of it, including storage and removal fees. I’m in California and have full coverage if that helps with any state-specific regulations.

Has anyone dealt with something like this before? Is it normal for the insurance to put this on the claimant? Any advice or experience with handling something like this would be really helpful.

Thanks in advance!

Yeah, unfortunately you’re still the owner until it’s fully transferred, so the fees are on you if it’s just sitting there. Insurance companies usually send a stop storage letter.

ETA: Especially in California, shops tend to pile on storage fees.

@Dexter
Right, it’s not just storage fees… there are fees for everything: dolly fees, cleanup fees, gate fees, and my personal favorite, forklift fees, even if there’s no forklift.

Winter said:
@Dexter
Right, it’s not just storage fees… there are fees for everything: dolly fees, cleanup fees, gate fees, and my personal favorite, forklift fees, even if there’s no forklift.

The gate fee is classic! They charge $150 just to open it.

@Orion
And they’ll find more fees if they can. It’s unreal.

Winter said:
@Orion
And they’ll find more fees if they can. It’s unreal.

At this rate, I wouldn’t be surprised if they start charging for the air the driver breathes.

@Dexter
I didn’t get any stop storage letter. They just sent me a text a week after canceling the pickup saying it was due to high fees. It’s frustrating because they didn’t notify me when the car was still at the shop.

@Maxwell
So you didn’t check on your car? That’s on you too. It sounds pretty standard for California though. Some shops even pretend they’re closed on holidays just to rack up fees.

Dexter said:
@Maxwell
So you didn’t check on your car? That’s on you too. It sounds pretty standard for California though. Some shops even pretend they’re closed on holidays just to rack up fees.

I assumed they picked it up as scheduled since I was told the pickup was confirmed. I got the text about the cancelation a week later.

@Maxwell
Yeah, but it’s still your property till it’s officially gone. The shop should have notified you too, honestly.

Did your insurance recommend this shop? They only cover reasonable rates, and if the shop overcharges, that difference can fall on you.

Jane said:
Did your insurance recommend this shop? They only cover reasonable rates, and if the shop overcharges, that difference can fall on you.

No, this is a shop I’ve used before. They only charged $500 in fees back then, and insurance had a cap of $145.

@Maxwell
It might be worth rethinking that shop. If they charge over market rate, that’s on you. You’ll end up paying a lot more if they keep adding fees.

Jane said:
@Maxwell
It might be worth rethinking that shop. If they charge over market rate, that’s on you. You’ll end up paying a lot more if they keep adding fees.

They want me to pick it up and bring it to my place so they can get it from here. They didn’t tell me immediately when they stopped covering the car, which is why I feel they aren’t acting in good faith.

@Maxwell
First, follow their instructions to avoid extra charges. Then, if you think there’s a case, consider a complaint with the state insurance department.

Jane said:
@Maxwell
First, follow their instructions to avoid extra charges. Then, if you think there’s a case, consider a complaint with the state insurance department.

I have messages showing I authorized the release, and they responded that pickup was scheduled.

@Maxwell
The longer it stays there, the more you’ll owe.

Hartley said:
@Maxwell
The longer it stays there, the more you’ll owe.

The shop said they’d go after the insurance company once I got my payout. They’re not charging me directly.

Maxwell said:

Hartley said:
@Maxwell
The longer it stays there, the more you’ll owe.

The shop said they’d go after the insurance company once I got my payout. They’re not charging me directly.

Sounds like they’re trying to charge insurance hidden fees. If they won’t bill you, they also can’t bill the insurance.

Maxwell said:

Hartley said:
@Maxwell
The longer it stays there, the more you’ll owe.

The shop said they’d go after the insurance company once I got my payout. They’re not charging me directly.

If you’re not keeping the car, insurance won’t pay excessive fees. The bill’s on you if you keep delaying.