Who pays for the damage done to my car when it’s towed from the body shop by a towing company at the request of my insurer?

If you have collision coverage on your damaged vehicle, file a claim with your insurer. If not, the insurance company does not have to pay you for the costs of repairs to your vehicle, even if the insurer asked for or requested the tow, UNLESS the tow truck operator was its employee (and not a contractor or subcontractor). You could also (or in addition to) file suit against the tow truck driver if you can show that it was through his negligence or carelessness that your car was damaged.

Whether you are guaranteed compensation from your insurer depends on whether your own auto insurance policy has collision coverage. Collision insurance is optional coverage you have to specifically purchase and pay for; it covers the cost of damage to your vehicle regardless of who was to blame (was at fault) for the collision. If you have this coverage, you can be reimbursed by your own insurance carrier simply by filing a claim for damages. If you do not have collision coverage, however, your insurer is not under any obligation to pay for your damaged car, even if they asked for or requested the tow, unless the tow truck operator was its employee. That because when there is collision coverage, they would only have to pay if they are liable for the damage. Under the law, an employer is liable for the damage or costs caused by its employees under the legal theory of respondeat superior (basically, “let the superior”—or boss—“answer”). But a contractor or a subcontractor is not an employee for this purpose; they are a third party.

Another option for compensation for the damage to your vehicle is to file a suit against the tow truck operator who was “at fault” in damaging your vehicle. In this case, you will have to show that he was at fault: that is, that he caused the damage through his negligence or carelessness. If he wasn’t at fault, he is not responsible for the damage—though if someone else was at fault (e.g. another driver who hit your towed car), you may be able to sue that person.

If the costs to repair the damage are relatively modest, consider filing suit in your state’s small claims court. It is a quick, simple, and inexpensive way to resolve legal cases that involve small amounts of money. Better yet, you do not need to involve a lawyer; you can proceed on a “pro se” basis, or as your own attorney. (Small claims courts typically impose a specific dollar limit on the amount of compensation one party may seek from another; check out our Small Claims Courts Resources to find out the dollar limit in your state.)

If the tow truck driver worked for someone else, you could also sue his employer because as discussed above, an employer is generally liable for the actions of its employees, so long as the employee is acting within the scope of his employment. If the driver did work for someone else (was not his own boss), sue the driver and the employer both. The more people who may be liable for your loss, the greater the odds of recovering money from someone.

See our discussion about who pays when an accident occurs in a company car.

Case Studies: Car Damage During Towing

Case Study 1: Collision During Tow

After leaving the body shop, John’s car was being towed by a third-party towing company at the request of his insurer. Unfortunately, the tow truck operator misjudged a turn and collided with another vehicle, causing damage to John’s car. Since the tow truck operator was at fault, John filed a claim against the towing company’s insurance, and they covered the cost of repairs to his car.

Case Study 2: Towing Company Negligence

Samantha’s insurer arranged for her car to be towed to a repair shop. However, during the tow, the towing company’s driver mishandled the vehicle, leading to additional damages. Samantha filed a claim with the towing company’s insurer and provided evidence of their negligence. The towing company’s insurance compensated Samantha for the additional repair costs caused by their negligence.

Case Study 3: Lack of Collision Coverage

Robert’s car was towed from the body shop by a towing company arranged by his insurer. Unfortunately, the tow truck driver accidentally damaged the car during transit. However, since Robert did not have collision coverage on his policy, his insurer was not obligated to pay for the damages. Robert had to file a claim against the tow truck operator’s insurance and prove the driver’s negligence to receive compensation.