Rideshare Insurer Closes the Claim While the Car Sits Impounded

Attorney Answer

Two problems are running at once, and the impound is the urgent one, because storage is charging you every day the car sits there.

On the insurance side, California requires transportation network companies to carry coverage in layers keyed to what the driver was doing at the moment of the crash. Cal. Pub. Util. Code § 5433 sets those layers. A driver who has accepted a ride and is on the trip is covered by required primary coverage of $1,000,000 for death, personal injury and property damage. When the app is on but no ride has been accepted, a smaller required primary layer applies, together with required excess coverage. The section was amended effective January 1, 2026, and the app-on, no-trip amounts are among the parts that changed, so the figures governing a 2024 collision must be read from the version in force on that date, not from today's text. Which layer applies turns on what the app recorded — that record is the single most important document in this claim.

Closing a claim is not the same as deciding one. Under Cal. Code Regs. tit. 10, § 2695.7(b), an insurer has 40 calendar days after receiving proof of claim to accept or deny the claim in whole or in part. Under § 2695.7(b)(1), an insurer that denies or rejects a first-party claim must do so in writing, listing all bases and the factual and legal bases for each reason then within its knowledge; where the denial rests on a policy provision, condition or exclusion, the written denial must reference it and explain how it applies. Under § 2695.7(b)(3), that written notice must tell you that you may have the matter reviewed by the California Department of Insurance, and must give the address and telephone number of the unit that reviews claims practices. Under § 2695.7(c)(1), an insurer that needs more time must say so in writing within the 40 days and then every 30 calendar days until it decides. Section 2695.7(d) requires a thorough, fair and objective investigation.

On storage, Cal. Code Regs. tit. 10, § 2695.8(k) requires an insurer, after a covered loss under collision or automobile physical damage coverage, to pay reasonable towing and storage charges where they are reasonably necessary to protect the vehicle from further loss, and to give reasonable notice before terminating payment for storage. Where the claim is a third-party claim under liability coverage, payment may be prorated based on the comparative fault of the parties.

Getting the car released when you are not the registered owner is governed by California's impound and vehicle-release rules, which are not covered on this page. In practice, a lot releases a vehicle to the registered owner, or to someone the registered owner authorizes in writing, so the fastest route usually runs through whoever is named on the title.

What you can do

1. Save the app records today: screenshots of the trip status, the times, and whether a ride was in progress at the moment of the collision. These become harder to retrieve as time passes.

2. Contact the registered owner and ask for written authorization to retrieve the vehicle, and ask the lot what identification it will accept.

3. Ask the lot, in writing, for an itemized statement — the daily rate, the total to date, and the exact documents needed to release the car.

4. Write to the insurer and ask for the written basis on which the claim was closed, referencing Cal. Code Regs. tit. 10, § 2695.7(b)(1). Under § 2695.5(b), a licensee generally has 15 calendar days to furnish a complete response.

5. File a complaint with the California Department of Insurance if no written answer comes; under Cal. Code Regs. tit. 10, § 2695.5(a), a licensee has 21 calendar days to furnish the Department a complete written response.

6. Ask a local attorney about the impound release and about which coverage layer applies to your trip status. Most lawyers offer a brief initial call at no cost, and a few minutes on your specific facts with someone who handles these cases in your area is worth more than any general guidance, including this page.

⏱ Time limits apply. The insurer clocks are running now: 40 calendar days to accept or deny under Cal. Code Regs. tit. 10, § 2695.7(b), with written updates every 30 calendar days under § 2695.7(c)(1). A claim for the damage to the vehicle itself generally runs on Cal. Code Civ. Proc. § 338(c)(1)'s three years, and a claim for personal injury on Cal. Code Civ. Proc. § 335.1's two years. Which applies, and when each started, depends on your facts. Meanwhile the storage bill grows daily, so have a local attorney look at this now rather than later. Separate from those clocks, California requires a driver involved in a crash to report it to the DMV on form SR-1 within 10 days when any one person's property damage exceeds $1,000 or anyone was injured, regardless of fault (Cal. Veh. Code § 16000(a)) — that duty follows the driver rather than the registration, so it was yours even though the car is not in your name, and if that report was never filed, raise it with your lawyer or the DMV now, because an unfiled report can lead to license suspension.