What are Storage Costs and How Do They Incur?
What happens to your tractor-trailer and cargo when you are involved in an accident that renders the vehicle unusable? If the vehicle is not safe to drive, a tow truck will recover your vehicle with the cargo and transport it to a storage facility for safekeeping.
What are Storage Costs?
Simply put, storage costs are charges levied to keep the insured property in a secure location after tow and recovery. These charges incur when the equipment and cargo are recovered and held by the tow yard until a decision has been made on the course of action. Storage costs begin accruing when the vehicle is deposited at the storage facility.
What Fees are Associated with Storage Costs?
Fees vary by state, with most states choosing not to regulate fees associated with storage costs. Some of the fees you can expect to see include
- State taxes
- Lean fees
- Notice fees
- Gate fees (in order to obtain a release of the vehicle)
How Do You Avoid Storage Costs?
The single most important thing to remember concerning storage fees is to act quickly to address the tow bill. Storage fees add up quickly and are assessed daily, so the bill can be well into the thousands before you realize it.
Storage fees range from $50 to $150 a day for cargo and currently, there is no cap on the timeframe that pieces of equipment or cargo can be in storage.
A tow yard that performs recovery for a tractor-trailer that has cargo in the trailer, will not charge separately for the cargo. Since the cargo is already in the trailer, it is considered part of the unit.
Are There State Regulations Surrounding Storage Costs?
Some states regulate what is allowed to be charged for storage fees; however, most do not regulate these costs. For instance, Texas regulates the amount that can be charged daily.
If you find yourself in a situation where your vehicle has been recovered by a tow yard it is best to be proactive and contact your insurance company. That way, if the storage fees turn out to be questionable, your insurance company will have the resources to investigate the situation.
Not all recoveries result in outrageous storage fees; however, if you find yourself in an unwelcomed situation it is best to be prepared and equipped with resources that will guide you to a favorable resolution.
Veritas Administrators has a dedicated and experienced team of towing and storage experts ready to assist. To learn more about our ability to partner with you on your towing and storage claims, see our “Learn More” button, or feel free to request a phone call.