Expert: Ron Cercone - 2/20/2009

Question
If I have full+gap coverage ins policy and car is stolen and for over 3 months not found then suddenly found but ins
claim it totalled beyond repair, now because police recorded incorrect info on the car theft report the car was kept in storage over 4 months accumulating 6000$ in fees,after finding out problem reg owner files claim and
request ins repair car ins refused and would not cover storage fees,ins assumed reg owner retained veh but storage yard sold it in an lien auction sale. Ins estimated
value of car at 25000$ but paid 17000$ deducting fees for
storage and salvage title.DMV in CA has informed Reg owner
that car has been sold to an individual who has been author
ised to drive it eventhough ins claimed it totalled, what can be done to recover loss?

Answer
Hi Patrick,

I'm having difficulty understanding all of your questions. Is it your car? Are you not the registered owner? If the insurer "refused to cover the $6,000 storage costs, but then deducted storage fees of $8,000, something does not add up. You need to get a better explanation from the insurer of that $8,000 deduction. Get it in writing. If the police report made an error, then the city owe's the bill. And why is the insurer paying the towing company anyway. They need to pay you, and you pay the towing company.

Most policies cover the storage costs until you get your settlement money. But I think you need to review the contract you signed with the towing company and see if it says something like "the vehicle owner will be responsible for charges not paid by the insurer". If they got no signature from you, then I don't think you owe the bill (just my non lawyer opinion). Be aware that some towing companies "set up" vehicle owners in order to run up the storage costs, for example, storing a car indoors?

Who selected the tow company, you or your insurer? If it was the insurer, then that helps your case. And very important, the "burden of proof" is on the tow company. Unless they can prove that you authorized them to store the vehicle, you don't owe the bill.

If the insurer can't prove you authorized the tow company, then try a state department of insurance complaint. And also try a state department of motor vehicles complaint. If that fails to get your money, sue them in small claims court.

If you question the $25,000.00 valuation of the vehicle, consider one of the total loss automobile reports for sale at www.uclaim.com.

There is no law against driving a car that was totaled out, but the title, pink slip, has to have a stamp on it saying the car was once totaled out.