Who Pays for Towing After a Car Accident: Complete Guide

Understanding Who Pays for Towing After an Accident

Car accidents create immediate headaches. Your vehicle needs towing. Someone has to pay for it.

The answer depends on who caused the crash. It also depends on what insurance coverage you have.

Here's the basic rule: the at-fault driver's liability insurance pays for towing. If you caused the accident, your collision coverage handles it.

However, the reality is more nuanced. Multiple coverage types can apply depending on your specific situation, policy details, and state regulations. Understanding these distinctions can save you hundreds of dollars and prevent frustrating disputes with your insurance company.

How Does Liability Insurance Cover Towing Costs?

Liability insurance protects the other person when you cause an accident. It covers damages you're legally responsible for.

In most states, liability insurance includes towing and labor coverage. The other driver's insurer will arrange a tow to a repair shop or safe location.

This covers basic towing only. Long-distance towing or specialty services may require extra negotiation.

When you're found to be at fault, the at-fault driver's liability insurance typically covers:

• Standard towing to the nearest repair facility or safe location
• Basic labor costs associated with the tow
• Initial assessment and hook-up fees
• Towing distance within reasonable limits (usually up to 50 miles)
• Winching or recovery services if the vehicle is stuck or in a ditch

However, liability coverage often has limitations. Most policies cap towing coverage at $100-$300 per incident. If your tow costs $450, you'll likely cover the difference yourself unless you have additional coverage. Additionally, if the at-fault driver's liability limits are low, their insurer might dispute charges they consider excessive, even if they're standard in your area.

The at-fault driver's insurance company will typically direct you to use their preferred tow network. These networks have negotiated rates that keep costs down. If you refuse and call an independent tow company, you might face reimbursement issues or have to pay the difference out of pocket.

What About Your Own Collision Coverage?

Collision coverage is different. It protects your vehicle regardless of who caused the crash.

If you have collision coverage and you're at fault, your insurance pays for towing. You'll typically pay your deductible first (usually $500-$1,000).

Collision coverage is optional. Many drivers skip it to save money. But it's worth having if you have a newer car or outstanding loan.

When you use collision coverage for towing, here's what typically happens:

• You pay your chosen deductible upfront to your insurance company
• Your insurer covers the remainder of reasonable towing costs
• You have more freedom in choosing your tow company and repair shop
• You're not dependent on the other driver's insurance or their cooperation
• The process moves faster since you're dealing directly with your own insurer

The cost of collision coverage varies based on your vehicle's value, your driving history, and your location. On average, collision coverage costs $150-$300 annually. For drivers with a financed vehicle, lenders typically require collision coverage as a condition of the loan. If your car is worth less than $5,000, the cost of collision coverage might exceed the potential payout, making it less economical.

One advantage of collision coverage is that it often includes towing to your preferred repair shop, regardless of distance. This matters if you have a trusted mechanic you want to use rather than the insurer's network shop.

When Does Comprehensive Coverage Pay for Towing?

Comprehensive coverage handles accidents that aren't collision-related. Think weather damage, theft, or vandalism.

If a tree falls on your car during a storm, comprehensive pays for towing. Same with floods, hail, or break-ins.

You'll pay your deductible first. Then the insurance covers the rest.

Comprehensive coverage applies to these non-collision incidents:

• Natural disasters (earthquakes, hurricanes, tornadoes, severe storms)
• Weather events (hail, snow, ice damage, falling objects)
• Theft or attempted theft of the vehicle
• Vandalism or malicious damage
• Animal collisions (hitting a deer, elk, or other wildlife)
• Fire or explosion damage
• Civil unrest or riots
• Glass damage (covered separately in some policies)

Comprehensive coverage typically costs $100-$250 per year, depending on your vehicle and location. Like collision coverage, comprehensive is optional but required by lenders if you have an outstanding loan or lease. The deductible for comprehensive is often lower than collision, sometimes as low as $100-$250.

An important distinction: if you hit an animal (like a deer), this is covered under comprehensive, not collision. Many drivers are surprised to learn this. If you swerve to avoid an animal and hit another vehicle or object, that's collision.

Does Your Roadside Assistance Cover Towing Costs?

Many auto insurance policies include roadside assistance. This is different from collision or comprehensive coverage.

Roadside assistance typically covers short-distance towing (usually 3-7 miles). It's great for breakdowns, lockouts, or minor mechanical issues.

For accident towing, roadside assistance usually doesn't apply. Your collision or liability coverage takes over instead.

Check your policy. Some roadside plans extend to 100 miles. Others partner with services like roadside assistance providers for better coverage.

Roadside assistance typically covers:

• Towing for mechanical breakdowns (3-100 miles depending on plan)
• Jump-starting dead batteries
• Lockout services when keys are locked in the vehicle
• Fuel delivery if you run out of gas
• Tire changes and repair assistance
• Winching out of ditches (non-accident related)
• Referrals to repair shops and medical facilities

Most roadside assistance plans cost $10-$30 per month or $100-$200 annually. Some insurers include it free or at a discount. Third-party providers like AAA offer similar coverage, often with additional benefits like discounts on hotels and restaurants.

The key limitation: roadside assistance explicitly excludes accident-related towing in most policies. If your vehicle is damaged from a collision, roadside assistance won't pay. You need collision or liability coverage instead. Some premium roadside plans do cover accidents, so review your specific policy language carefully.

What If You Don't Have Insurance?

No insurance means you pay out-of-pocket. This can cost $150-$500 for basic local towing.

Long-distance towing runs $2-$4 per mile. A 50-mile tow could hit $200-$300 easily.

Storage fees add up fast too. Impound lots charge $25-$75 daily. After a week, you're looking at $175-$525 in storage alone.

Consider this a hard lesson. Get insurance immediately after paying for the tow.

If you're uninsured and involved in an accident, your financial exposure is significant:

• Towing costs: $150-$500 for local, $300-$1,500+ for long-distance
• Storage fees: $25-$75 per day (can total thousands for extended storage)
• Repair costs: $2,000-$50,000+ depending on damage severity
• Medical bills: potentially unlimited if you or others are injured
• Legal liability: you're personally responsible for damages to other vehicles and property
• Potential lawsuits: the other driver can sue you for damages exceeding your ability to pay
• License suspension: many states suspend licenses for uninsured drivers involved in accidents
• Criminal penalties: some states treat uninsured driving as a misdemeanor

The financial and legal consequences of driving uninsured far exceed the cost of insurance premiums. Most states legally require auto insurance, with minimum liability coverage of $25,000-$100,000 depending on the state. Getting insured immediately should be your top priority.

Understanding Uninsured and Underinsured Motorist Coverage

What if the other driver has no insurance? Or not enough coverage?

Uninsured motorist (UM) coverage protects you. Underinsured motorist (UIM) coverage kicks in when their coverage isn't enough.

These don't directly pay towing. But they cover your damages. You can use those funds to pay for towing and repairs.

UM/UIM coverage costs about $15-$30 extra monthly. It's worth it for peace of mind.

Here's how uninsured and underinsured motorist coverage works in practice:

• Uninsured motorist (UM) coverage pays for your damages when the at-fault driver has no insurance
• Underinsured motorist (UIM) coverage applies when the at-fault driver's liability limits are too low to cover your damages
• Both typically cover medical expenses, lost wages, pain and suffering, and property damage
• You can use these funds to pay towing, repairs, and other accident-related costs
• UM/UIM coverage typically has limits of $25,000-$100,000 per incident
• You usually pay your deductible before these coverages apply
• These coverages are optional in most states but required in some
• Hit-and-run accidents are often covered under UM policies

UM/UIM coverage is particularly valuable because approximately 13% of drivers nationwide are uninsured. In some states, this number exceeds 25%. If you live in a high-uninsured area, this coverage becomes even more critical. The cost ($15-$30 monthly) is a bargain compared to the potential $5,000-$20,000+ in damages from a serious accident with an uninsured driver.

How to Handle Towing Payment at the Scene

Step 1: Call your insurance company first. Report the accident immediately. They'll tell you what's covered.

Step 2: Get the police report number. You'll need this for insurance claims and liability disputes.

Step 3: Ask your insurer about approved tow shops. Many insurers have preferred networks. Using them streamlines payment.

Step 4: Don't sign blank agreements. The tow company will ask you to sign paperwork. Read it first. Make sure it only covers towing, not inflated storage or repair costs.

Step 5: Get an itemized receipt. Write down the tow distance, time, and any extra charges. This protects you later.

Additional steps to protect yourself at the accident scene:

• Take photos of the accident scene from multiple angles, including vehicle positions and damage
• Document road conditions, weather, traffic signs, and any hazards that contributed to the accident
• Get contact information from all witnesses and other drivers involved
• Note the time, date, and exact location of the accident
• Don't admit fault or apologize excessively to the other driver
• Request the police officer's name and badge number
• Ask the tow operator for their license number and company contact information
• Clarify whether you or your insurance company is responsible for payment
• Ask about the tow company's liability insurance in case your vehicle is damaged during transport
• Request a detailed invoice before signing anything

Negotiating Towing Costs with Insurance Companies

Sometimes insurance companies dispute towing charges. A $400 tow might seem excessive to them.

Here's how to fight back. First, check local towing rates. If your charge aligns with market prices, you have leverage.

Second, provide documentation. Photos of the accident scene, the vehicle's position, and road conditions all matter. They justify why a longer tow was necessary.

Third, get multiple quotes. If another tow company would charge less, the insurer might argue for the lower amount. But they still owe for reasonable towing.

Most disputes settle with a compromise. The insurer pays 80-90% of the charge. You cover the rest.

Strategies for negotiating with insurance companies over towing disputes:

• Research average towing rates in your area using online tools and local tow company websites
• Gather evidence showing the tow was necessary (accident photos, police report, vehicle damage assessment)
• Document the vehicle's location and explain why the specific tow distance was required
• Obtain written quotes from other tow companies showing comparable rates
• Request an itemized breakdown of charges from the tow company
• Appeal the insurance company's decision in writing with supporting documentation
• Contact your state's insurance commissioner if the company refuses reasonable payment
• Hire a public adjuster if the dispute involves large amounts ($2,000+)
• Consider filing a complaint with the Better Business Bureau or state attorney general
• Document all communication with the insurance company in writing

What About Towing to a Specific Repair Shop?

You have the right to choose your repair shop. Insurance companies can't force you to use their preferred vendor.

But here's the catch: if you pick an out-of-network shop, towing costs may increase. The insurer might only pay for towing to the nearest repair facility.

If you insist on a specific shop 20 miles away, you might cover that extra distance yourself.

The smart move? Ask your preferred shop if they're in your insurer's network. Many are. If not, negotiate the extra towing cost upfront.

Important considerations when choosing a repair shop:

• You have the legal right to choose any repair shop, regardless of insurer preferences
• Insurance companies often have preferred networks with negotiated rates
• Using an in-network shop typically means the insurer covers all towing to that location
• Out-of-network shops may result in higher towing costs you must cover
• OEM (original manufacturer) certified shops often cost more but provide quality assurance
• Independent shops may be cheaper but might not have warranty guarantees
• Ask your preferred shop if they accept direct insurance payments
• Get repair estimates from multiple shops before deciding
• Verify the shop's credentials, certifications, and customer reviews
• Confirm the shop's experience with your vehicle's make and model

State Laws and Towing Payment Responsibilities

Towing laws vary by state. Some states require liability insurance to cover all reasonable towing costs. Others cap the amount.

Check your state's regulations. State towing laws often define what's "reasonable."

In some states, the at-fault driver pays the towing company directly. In others, the insurer pays. In a few, you're responsible for arranging payment, then the insurance reimburses you.

This matters for timing. You might need to pay upfront, then wait for reimbursement. Have a plan.

Key state law variations affecting towing payment:

• Some states cap towing coverage at specific amounts ($150-$300 per incident)
• Other states require "reasonable and customary" towing costs be covered with no specific cap
• Certain states mandate insurers cover towing as part of standard liability policies
• Some states allow towing companies to charge storage fees immediately after towing
• A few states regulate maximum daily storage rates ($25-$75 per day limits)
• Some states require insurers to offer towing coverage; others make it optional
• Certain states have specific regulations about preferred provider networks
• Some states allow you to choose any tow company; others limit choices to licensed providers
• A few states have "choice of repair" laws requiring insurers to honor your shop selection
• Certain states mandate specific notification timeframes for insurance claims

Towing Storage Fees After an Accident

Here's where costs get tricky. Towing is one expense. Storage is another.

Storage fees typically run $25-$75 per day. After 10 days, you're looking at $250-$750.

Insurance companies may cover storage for a few days while repairs are arranged. But long-term storage? You're often on your own.

Move your car to a repair shop quickly. This stops storage meter from running. Storage fees by state have legal limits in many places, but they add up fast regardless.

Understanding storage fees and how to minimize them:

• Storage fees begin immediately after the vehicle is towed, sometimes even before you're notified
• Impound lots typically charge $25-$75 daily, with some urban areas exceeding $100 per day
• Insurance companies often cover storage for 3-7 days while repairs are arranged
• Extended storage beyond the insurance coverage period becomes your responsibility
• Storage fees continue to accrue even while you're disputing liability
• Some states cap storage fees by law; others have no limits
• Releasing the vehicle quickly is the best way to minimize storage costs
• Moving the vehicle to a repair shop immediately stops the impound lot clock
• Some repair shops offer free or discounted storage while repairs are in progress
• Storage fees are typically not tax-deductible for personal vehicles

Practical Steps to Minimize Towing Costs

Get roadside assistance coverage. Even if it doesn't cover accident towing fully, it helps with other breakdowns.

Keep your policy details accessible. Store your insurance card and policy number in your phone. When an accident happens, you'll have this info instantly.

Document everything. Photos of the accident scene, vehicle damage, and road conditions help your claim. They also prove towing was necessary.

Choose insured tow companies. Verify the tow operator is licensed and insured. This protects you if something goes wrong during transport.

Ask about discount programs. Some insurers offer discounts through roadside assistance networks. You might save 10-20% on towing.

Additional cost-minimization strategies:

• Review your insurance policy annually to ensure adequate coverage limits
• Ask your insurer about bundling discounts for multiple coverage types
• Maintain a good driving record to qualify for safety discounts
• Consider increasing deductibles if you have emergency savings to cover them
• Use your insurer's approved tow network to avoid disputes and additional costs
• Arrange repairs quickly to minimize storage fees
• Get multiple repair estimates to ensure fair pricing
• Ask about aftermarket or used parts to reduce repair costs
• Follow up on your claim regularly to prevent delays
• Keep detailed records of all accident-related expenses for potential tax or legal purposes

Common Mistakes to Avoid

Understanding what NOT to do after an accident is just as important as knowing the right steps:

• Don't delay reporting the accident to your insurance company—most policies require prompt notification
• Don't sign any documents without reading them carefully, including tow company agreements
• Don't admit fault at the accident scene, even if you think you caused it
• Don't accept the first tow offer without asking about alternatives and costs
• Don't fail to get a police report, as this is crucial for insurance claims
• Don't ignore storage fees—they accumulate quickly and can exceed repair costs
• Don't use an unlicensed or uninsured tow company, as this creates liability issues
• Don't skip documenting the accident scene with photos and witness information
• Don't assume your roadside assistance covers accident towing without verifying
• Don't negotiate directly with the other driver's insurance without consulting your own insurer first

Common Questions About Accident Towing Payments

Can you choose any tow company? Yes, but your insurer might not pay as much if you pick an expensive provider. It's worth asking first.

Who pays if both drivers are partially at fault? This depends on your state's comparative fault rules. In some states, each driver's insurance pays their portion. In others, the majority at-fault driver covers everything.

Does AAA cover accident towing? AAA covers breakdowns and lockouts, not accidents. Your auto insurance handles accident towing instead.

What if the other driver refuses to claim responsibility? Your collision coverage pays while the dispute is resolved. You may recover costs later if liability is proven.

Are there tax deductions for accident towing? No. Accident-related costs aren't tax-deductible for personal vehicles. They're only deductible if the car is a business asset.

Additional frequently asked questions:

• How long does the insurance company have to pay towing claims? Most states require payment within 30-45 days of claim approval, though this varies by state and policy.
• Can I sue for towing costs if the insurance company refuses to pay? Yes, you can file a complaint with your state's insurance commissioner or pursue legal action if amounts are significant.
• What if my vehicle is damaged during towing? The tow company's liability insurance should cover this. Document any additional damage with photos immediately.
• Do I need to use the tow company my insurance recommends? No, but using their network often results in faster payment processing and negotiated rates.
• What happens if the tow company and insurance company disagree on the cost? You're typically not responsible for disputes between them, though you may need to wait for resolution.

For more details on insurance coverage, check our towing insurance coverage guide.

Prices from providers like AAA, GEICO, Progressive, and State Farm are current as of 2026. We're not affiliated with these companies.

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