If your vehicle has been impounded, one of the first questions that might cross your mind is: “Will my insurance cover any of this?” It’s a fair question—especially as impound and storage fees add up by the day. But the short answer is: probably not.
Most standard car insurance policies do not cover impound fees, and there are only a few rare exceptions. Here’s what you need to know if your vehicle has been towed and locked up.
Why Was Your Car Impounded?
The reason your car was impounded matters—a lot. Insurance companies are usually only interested in helping when your car was impounded after a covered accident or stolen and recovered. If the vehicle was taken due to administrative or legal issues (like expired tags or parking violations), you're typically on your own.
Here are common reasons vehicles are impounded that insurance won’t cover:
- Unpaid tickets
- DUI arrests
- Expired registration
- No insurance or license
- Illegal parking
- Vehicle abandonment
These situations fall outside of your insurer’s responsibilities. The storage facility will expect you to pay the full balance—and that balance increases every day your vehicle sits there.
When Insurance Might Help
There are a few exceptions to the rule. Depending on the details of your insurance policy, you may get help with towing or temporary storage costs—but only in very specific cases.
Here’s when insurance may step in:
- After an accident: If your vehicle was involved in a collision and then impounded, your insurer may reimburse towing and short-term storage (usually 72 hours or less), but only if you have collision or comprehensive coverage.
- If your car was stolen and recovered: If the police recover your vehicle and it ends up impounded, a theft claim with comprehensive coverage may allow your insurance company to cover the recovery and release costs—but not unpaid tickets or legal fines. Even in these cases, insurance companies are not going to pay administrative impound fees, legal penalties, or tickets. Those remain your financial responsibility.
What You Can Do Next
The best thing you can do is take quick action. Each day your car remains impounded increases your bill —sometimes drastically. Here’s how to stay ahead of it:
1. Call your insurance provider: Ask if your policy includes coverage for towing, storage, or recovery in your specific situation. Get the details in writing if possible.
2. Understand your policy: Most people only realize what’s not covered when it’s too late. Review your policy’s towing and storage terms carefully.
3. Don’t wait: If you’re facing roadblocks—especially in complex situations like a stolen vehicle, a deceased owner, or overwhelming impound fees—consider getting outside help.
That’s where our service at OUTPOUND.com is your best call of the day! OUTPOUND is dedicated to helping people get their vehicles back from impound lots fast. Whether you’re stuck navigating paperwork, juggling multiple fees, or dealing with red tape, we offer expert guidance, real-time help, and creative solutions. Just ask “Bob,” another success story. Bob’s 2014 Chevy Silverado 3500 was unexpectedly impounded. When he tried to retrieve it, he hit endless red tape and rising storage fees, until we stepped in and guided him through the process to get his vehicle released quickly and affordably
