What do I do for an insurance company causing me to accumulate 1600$ dollars in tow fees after telling me they would?

Question

My car was hit while it was parked, and totaled by a Fred Loya insured driver. It was then towed, and stored at a tow yard. I was told by fred loya they would pay the fees of roughly 535$, and pick my car up. 15 days later I got a call from fred loya, saying they would only pay 440$ for the tow fees, and my car was still at tow yard. By this time the fee had racked up 2110$ in fees. I asked why didn't they pick up my car, and pay the fees like they said, fred loya ins. said because the fees where unreasonable. How can they do this to me since they said they would pick the car up, and pay the 535$+. Why could they not call me to tell me they were only going to pay 440$, and for me to take care of the rest while the bill was around 600$? This is just wrong, and it is 100% their responsibility to do this. Especially when the fees are the standard fees in my county, and they didn't even ask this to the tow yard, nor call the Salinas PD about the fees. Please help!

James L. Arrasmith · Answer

In situations like yours in California, dealing with an insurance company over towing fees can be challenging, but there are steps you can take. First, gather all communication records with Fred Loya Insurance, including any promises or agreements they made regarding the payment of towing fees. This documentation is crucial. 
 
Next, consider writing a formal letter to Fred Loya Insurance outlining the situation, the initial agreement, and the resulting fees due to their failure to act as promised. In the letter, request that they cover the full amount of the tow fees as per their initial commitment. Be specific about the dates, amounts, and any verbal agreements. 
 
If the insurance company does not respond favorably, you may need to escalate the matter. This could involve filing a complaint with the California Department of Insurance, which oversees insurance companies and can investigate complaints about unfair practices. 
 
In situations where significant costs are involved and an insurance company is not fulfilling its obligations, it may also be wise to consult with an attorney. An attorney can advise you on the strength of your case and represent your interests in potential legal proceedings. 
 
Remember, insurance companies have a duty to act in good faith. If you believe Fred Loya Insurance is not meeting this obligation, legal recourse may be an option to consider.

Neil Anapol · Answer

Fred Loya is by far the worst insurance company I have ever dealt with, and I have been practicing law for 35 years.  I would not waste my time negotiating with them.  Instead, file a small claims court lawsuit against the driver who hit your car (assuming the damages are $10,000 or less).  You should be able to recover the towing, storage, repair, and loss of use damages.  Loss of use is the fair rental value of your car (probably somewhere between $20 and $60 per day).  You will win your small claims case, and Fred Loya will be obligated to pay at least up to the policy limit (which could be as low as $6,000). 
 
If you have collision coverage, you should have put it through your own insurance.  You still might be able to go that route.  If you do, your insurance company will pay you what it owes you less the deductible, and get its money back from Fred Loya.  When that happens, you get your deductible back.

Tim Akpinar · Answer

As my colleagues correctly advise, your options include continuing try to resolve, proceeding to suit, either on your own or through an attorney, or handling as a first party claim through your carrier. Good luck

Q: What do I do for an insurance company causing me to accumulate 1600$ dollars in tow fees after telling me they would?