The auto accident attorneys at Wagner Reese regularly earn awards and accolades for our exceptional skills, receiving numerous accolades and acknowledgments. Our team of attorneys are widely recognized throughout Indiana as the best of the best. We have earned numerous awards for the way we represent our clients and their best interests. In fact, in 2020 alone, eight of our attorneys were selected to either the Super Lawyers® or Rising Stars lists, which include a small percentage of all practicing legal professionals nationwide. Three of our attorneys were also named in The Best Lawyers in America©, presented by Best Lawyers®. Our founding partners, Attorneys Stephen Wagner and Jason Reese, were among Indiana’s Top 25 Super Lawyers® and Best Lawyers® honorees.
If you ask around, you’ll hear story after story of our team representing the best interests of Indiana car accident victims. Because of our stellar reputation, we’re often asked questions like “Can an insurance company refuse to pay storage fees?” This is a question that is unfortunately asked all too often, as auto insurance companies try every tactic in their arsenal to pay as little as possible.
Your Insurance Company’s Obligation to Pay for Your Storage Fees
Insurance coverage often comes with a host of complexities and nuances, especially when it comes to handling storage fees. While insurance policies vary, there are situations where an insurance company might refuse to pay storage fees associated with a claim. Understanding these scenarios and the factors that influence such decisions is essential for policyholders navigating these situations.
Your Auto Insurance Policy’s Provisions
Insurance policies typically outline the coverage and limitations regarding storage fees. Most policies will cover reasonable storage costs incurred as a result of a covered loss. However, there may be stipulations regarding the duration of storage or the maximum amount covered. It’s crucial to review your policy thoroughly to understand what it includes and excludes concerning storage fees.
Reasonable and Necessary Expenses
Insurance companies are generally inclined to cover reasonable and necessary expenses directly related to the covered loss. Storage fees are usually considered reasonable if they are incurred while the vehicle or property is awaiting inspection, appraisal, or repairs after a covered incident like an accident, theft, or damage.
Timely Notification and Cooperation
One of the primary reasons an insurance company might refuse to cover storage fees is if the policyholder fails to notify them promptly or doesn’t cooperate during the claims process. A delay in informing the insurer about the loss or a failure to follow their procedures might result in the denial of coverage for storage expenses.
Abandonment or Failure to Mitigate Loss
If a policyholder abandons the damaged property or fails to take reasonable steps to mitigate further loss (such as moving the property to a less expensive storage facility), the insurer might refuse to cover ongoing storage fees. Insurers expect policyholders to act prudently to minimize expenses after a covered loss.
Documentation and Proof
Submitting proper documentation and proof of storage fees is crucial for reimbursement. Failure to provide adequate documentation, such as receipts or invoices from the storage facility, can result in the denial of payment for storage costs.
Better Understand Policy Exclusions
Certain policy exclusions might lead to the refusal of payment for storage fees. For instance, if the policy explicitly excludes coverage for storage fees beyond a specific time frame, or if the storage costs exceed the limit set by the policy, the insurer may decline payment for the excess amount.
Unreasonable or Excessive Storage Charges
Insurance companies may refuse to cover storage fees if they deem them excessive or unreasonable. They often have guidelines or standards for what they consider reasonable storage costs. If the storage facility charges significantly more than the standard rate, the insurer might only cover up to the reasonable amount, leaving the policyholder responsible for the excess fees.
What to Do in a Dispute Over Coverage
In some cases, there might be a disagreement between the insurance company and the policyholder regarding coverage for storage fees. This is frustrating, yet not uncommon. The insurer may argue that the storage was unnecessary or excessive, while the policyholder might believe it was a justified expense. These disputes can lead to a denial of payment until a resolution is reached, which might involve mediation, arbitration, or legal action. If you feel this step is necessary, we’re here to guide you regarding what to do next. We’re happy to take your case and fight on your behalf to get the coverage you are owed.
Contact Our Indiana Auto Accident Law Firm to Learn More
Insurers may refuse to pay storage fees for various reasons, including policy provisions, disputes over coverage, unreasonable charges, or failure to comply with policy terms. To navigate these situations effectively, it’s essential for policyholders to thoroughly understand their policy coverage, promptly inform their insurer about a loss, and maintain clear communication while providing the necessary documentation to support their claim for storage fees. Consulting an experienced legal team provides valuable guidance when facing such a situation.
Our motor vehicle accident lawyers have garnered widespread acclaim throughout Indiana. In 2022, eight of our attorneys secured coveted spots on either the Super Lawyers® or Rising Stars lists. Three of our accomplished attorneys earned placements in The Best Lawyers in America©, a distinction presented by the renowned publication Best Lawyers®. Among the select few acknowledged as Indiana’s Top 25 Super Lawyers® and Best Lawyers® honorees, are our founding partners, Attorneys Stephen Wagner and Jason Reese. These awards are only part of why so many Indiana personal injury victims trust us to answer their questions and move their claims forward.
If you have additional questions or concerns about your car accident case, including if your auto insurance company is fulfilling their end of the situation, we’d be honored to hear from you. Your rights and long-term well-being are our top priority. Call us at 866-828-0308 for a free consultation. We are here to ensure you receive the justice and financial compensation that you deserve!
