Estimating Storage Fees: Auto Body Shops And Insurance Negotiations

Estimating storage fees for an auto body shop can be a complex process, with various factors and costs to consider. The primary consideration is the opportunity cost of the space taken up by the car, which could otherwise be used to generate revenue by servicing other vehicles. Additional expenses incurred by the body shop, such as the cost of leasing, heating, or insuring the space, can also be factored into the storage fee.

The rate for storage fees can vary significantly between different auto body shops, with some shops charging a daily rate for indoor or outdoor storage, or both. The specific rate is often influenced by the local market and what is deemed customary in the area. It's important to note that insurance companies may push back on excessively high storage fees and choose to move the vehicle to a different location.

To estimate storage fees, auto body shops should consider the costs associated with storing the vehicle, including any administrative fees, hazardous waste disposal, and labour charges for tasks such as moving or inspecting the vehicle. It's essential to have clear and visible policies regarding storage fees to avoid disputes with customers.

In some cases, insurance companies may cover storage fees, especially if the vehicle is awaiting an inspection or decision from the insurer. However, it's always recommended to review the specific terms of the insurance policy and consult with legal professionals to understand the obligations and rights of all parties involved.

Storage fees without signed agreements

Storage fees are a common issue when it comes to auto body shops, and it is important to understand your rights and obligations in such situations. If you have never signed any documentation or agreement stating that you will be charged storage fees, you are generally not obligated to pay these charges. However, it is essential to carefully review the specific circumstances and applicable laws, as there may be exceptions or nuances that could impact your case.

In the context of auto body shops, storage fees refer to the charges incurred for keeping a vehicle in their possession while awaiting repairs, inspections, or other related services. These fees can accumulate over time, and it is crucial to address them promptly to avoid unexpected costs. It is always advisable to consult with a legal professional specialising in automotive law or your local automotive repair laws to ensure you understand your rights and obligations.

In some cases, auto body shops may attempt to charge storage fees without providing proper notification or obtaining customer agreement. This can be a complex situation, and it may depend on various factors, including the presence of posted or written policies, verbal agreements, and the specific laws governing automotive repairs in your state or region.

If you find yourself in a dispute over storage fees with an auto body shop, there are a few important steps you can take to protect your rights:

• Review any documentation or agreements: Carefully review any documents or agreements you may have signed with the auto body shop. If there is no mention of storage fees or related charges, you may have a strong case for refusing to pay.
• Assess the visibility of posted policies: If the auto body shop claims that their storage fees are posted or displayed in their facility, consider the visibility and prominence of such postings. If they are not easily noticeable or accessible, you may argue that you were not adequately informed.
• Seek legal advice: Consult with an attorney or legal professional who specialises in automotive law or has experience in similar cases. They can provide personalised advice based on the specific circumstances and applicable laws.
• Contact your insurance company: If you have automotive insurance, reach out to your insurance provider or claims representative to discuss the situation. They may be able to assist you in resolving the issue or provide coverage for the storage fees, depending on your policy.
• Remove your vehicle from the shop: To avoid incurring further charges, it is generally advisable to remove your vehicle from the auto body shop as soon as possible, especially if you dispute the storage fees. You can then address the matter from a position of not accruing additional charges.
• Document all communications: Keep a detailed record of all communications with the auto body shop, including dates, times, persons contacted, and the content of discussions. This documentation can be crucial if the dispute escalates or requires legal intervention.
• Understand your local laws: Research and understand the specific laws and regulations governing automotive repairs and storage fees in your state or region. This information can help you determine your rights and obligations in the situation.

Remember, each case is unique, and it is always best to seek personalised legal advice based on your specific circumstances. The above information provides a general overview of the considerations and steps you can take when dealing with storage fees without signed agreements from auto body shops.

Insurance company's role in storage fees

An insurance company's role in covering storage fees depends on the situation and the specific terms of the policy. While insurance policies vary, there are typically provisions regarding storage fees. Most policies will cover reasonable storage costs resulting from a covered loss, but there may be stipulations on the duration of storage or the maximum amount covered.

Storage fees are generally considered reasonable if they are incurred while the vehicle or property awaits inspection, appraisal, or repairs following a covered incident, such as an accident, theft, or damage. However, insurance companies may refuse to cover storage fees if they deem them excessive or unreasonable compared to standard rates.

In some cases, policyholders may be responsible for paying storage fees if they fail to notify the insurance company promptly, do not cooperate during the claims process, or abandon the damaged property. It is essential for policyholders to 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.

When dealing with storage fees, it is important to review the specific terms of your insurance policy to understand what is included and excluded. Proper documentation and proof of storage fees, such as receipts or invoices, are crucial for reimbursement.

Storage rates for indoor and outdoor

The rates for indoor and outdoor storage vary, with indoor storage typically costing more due to the overhead costs of buying, leasing, heating, or insuring the space. According to the "Who Pays for What?" survey conducted in April, the median storage rate for indoor storage was $50 per day, while outdoor storage was $40 per day. This means that half of the repairers charge more than these amounts, and half charge less. The same survey found that two years ago, the median rates were $45 for indoor and $35 for outdoor storage.

The 75th percentile repairer, who is still charging less than a quarter of the shops in the industry, assesses customers $55 for exterior storage and $75 for indoor storage. In 2016, the same repairer charged $50 for outdoor and $65 for indoor storage. These rates can vary depending on the geographic location and the demand for storage space in that area.

It is important to note that storage fees cannot be charged while a vehicle is undergoing repairs or a teardown. Storage fees can only accrue after the completion of all repairs or teardown, and the customer has been notified that the vehicle is ready for pickup. Additionally, it is considered a best practice to include the specified timeframe for retrieval and notify the customer of potential storage fee charges.

Legal recourse for excessive fees

If you believe that an auto body shop is charging excessive storage fees, there are several steps you can take to address the issue and seek legal recourse. Here are some detailed instructions and suggestions to help you navigate this situation:

• Consult an Attorney: Consider seeking legal advice from an attorney who specialises in automotive law or contract law. They can review your specific situation, advise you on your rights and obligations, and guide you through the legal process.
• Review Applicable Laws and Regulations: Familiarise yourself with the laws and regulations pertaining to storage fees charged by automotive repair dealers in your state or country. For example, in California, the Bureau of Automotive Repair (BAR) provides guidance on common storage fee issues and can mediate consumer complaints. Understanding the relevant laws will help you determine if the auto body shop is violating any regulations.
• Communicate with the Auto Body Shop: Try to establish open communication with the auto body shop to discuss the storage fees. Request an itemised invoice for the charges and review it carefully. If you believe the fees are excessive, present your concerns to the shop management and attempt to negotiate a resolution.
• Contact Your Insurance Company: Get in touch with your insurance company and explain the situation. They may be able to assist you in dealing with the auto body shop, especially if your insurance policy includes coverage for storage charges. Provide them with all relevant documentation and follow their advice on the next steps.
• File a Complaint: If the issue remains unresolved, consider filing a formal complaint with the appropriate regulatory body or consumer protection agency. In California, for example, you can file a complaint with the BAR, which investigates and mediates consumer complaints involving storage charges. They can help mediate an equitable resolution between you and the auto body shop.
• Seek Alternative Dispute Resolution: In some cases, you may be able to explore alternative dispute resolution methods, such as mediation or arbitration, to resolve the issue without going to court. This can be a less costly and time-consuming option compared to litigation.
• Take Legal Action: If all other avenues have been exhausted, you may need to consider taking legal action against the auto body shop. Consult with an attorney to discuss the strengths and weaknesses of your case and the likelihood of success in court. They can guide you through the legal process, including gathering evidence, preparing court filings, and representing you during hearings or trials.

Remember to keep detailed records of all communication, invoices, and relevant documentation throughout the process. It is also important to act promptly to avoid accruing additional storage fees and to preserve your legal rights.

Storage fees for total loss vehicles

Vehicle Owner's Responsibility

As the legal owner of the vehicle, the owner is typically responsible for any storage fees incurred while the vehicle is in the body shop's possession. This is especially true if the owner signed a repair order or contract with the body shop. However, it is important to carefully review any documents or agreements signed, as there may be clauses related to storage fees.

Insurance Coverage

In some cases, the vehicle owner's insurance policy may cover towing and storage charges. It is advisable for the owner to involve their insurance company and let them deal with the body shop regarding storage fees. The insurance company may have preferred shops or DRP (Direct Repair Program) shops that they work with, which can help streamline the process and avoid excessive charges.

Body Shop's Charges

Body shops can charge storage fees, but these fees must be reasonable and in line with market rates. The specific rate may depend on factors such as the location (inside or outside storage) and any special circumstances, such as additional security measures in high-crime areas. It is recommended to get an itemized bill for all charges, including storage, administrative fees, hazardous waste cleanup, solid waste disposal, towing charges, etc.

Timeline Considerations

Storage fees can vary depending on the timeline of events. If the vehicle is initially deemed repairable and then later declared a total loss, the storage fees incurred during the repair period may not be charged to the owner or insurance company. Additionally, if there are delays in communication or approval from the insurance company, the body shop may not be able to charge storage fees for that period.

Legal Considerations

It is important to be aware of the specific laws and regulations in your state or region regarding storage fees and vehicle storage. In some cases, there may be time restrictions or requirements that need to be met to perfect a lien or collect storage charges. Consulting with an attorney or legal professional who specializes in these matters can help clarify your rights and options.

In summary, storage fees for total loss vehicles can be a complex issue involving the vehicle owner, the body shop, and the insurance company. It is essential to understand the responsibilities of each party, review all agreements and charges, and be aware of any applicable laws or regulations. By staying informed and proactive, vehicle owners can better navigate this challenging situation and minimize unnecessary costs.

Frequently asked questions