Do I Have to Pay Auto Storage Fees My Insurance Company Calls Unreasonable in New York?
Start a free AI-assisted chat and connect with an experienced New York attorney, with no obligation.
Reviewed & verified by A. Jason Velez, Esq.*
Managing Attorney, 1LAW · Last reviewed January 1, 2026
Legal Inquiry
Consumer Legal Issue
My insurance company says the storage fees are unreasonable, and I have to pay the auto shop for the remainder.
Attorney Answer
Whether you legally owe the difference depends on what your insurance policy actually promises to cover and what New York law treats as a "reasonable" storage charge, not simply what the insurer decided on its own.
New York generally allows an auto shop to place a lien on a stored vehicle for unpaid, reasonable storage and repair charges. That lien is part of why resolving a disputed balance promptly matters, since it affects whether and how you can get your car back. Separately, insurance companies in New York have a legal duty to handle claims fairly and in good faith under the state's unfair claims settlement practices law, New York Insurance Law § 2601. A blanket refusal to pay, without a clear explanation of how the insurer decided the fees were unreasonable, can sometimes be challenged.
It is also worth checking who caused any delay in the process. If slow claims handling by the insurer contributed to how long the vehicle sat in storage, that can matter to who should fairly bear the added cost.
What you can do
1. Get an itemized invoice from the auto shop showing the daily storage rate and the total number of days charged. 2. Ask your insurer in writing exactly why they consider the charges unreasonable, and ask them to point to the rate or cap they used to reach that conclusion. 3. Review your policy's language on storage and towing coverage, since some policies cap this coverage explicitly and others do not address it at all. 4. If you believe the insurer is not handling your claim in good faith, you can file a complaint with the New York State Department of Financial Services. 5. Ask the auto shop whether they will negotiate the rate directly, since they generally would rather be paid something than pursue a lien. 6. If the disputed amount is modest, small claims court is often a low-cost way to resolve a leftover balance without hiring a lawyer.
This is general legal information, not legal advice, and a local New York attorney can review your policy and the shop's charges to advise on your specific options.
*Attorney review is supported by AI-assisted drafting and legal research algorithms. Use of this Chat does not create an attorney-client relationship.
By using this service you agree to our Terms of Use and our Privacy Policy.
Courts & Legal Aid in New York
- File or look up a case through the New York State Unified Court System, which serves New York and the surrounding area.
- Get free civil legal help from LawHelpNY.
- Use the LSC — Find Legal Aid to find a local legal-aid office by ZIP code.
- Use the LawHelp.org to browse free legal information and self-help resources.
- Use the ABA Lawyer Referral Directory to get matched with a local attorney through your state bar.
Frequently Asked Questions
Can the auto shop keep my car until the storage bill is paid?
Possibly. New York law generally allows a repair or storage facility to hold a lien on a vehicle for unpaid reasonable charges, which is part of why resolving this promptly matters.
What if my policy doesn't mention a storage fee limit at all?
Then the insurer's basis for calling the charges unreasonable is weaker, and you have a stronger argument that ordinary reasonable storage costs should be covered. Ask them to point to the specific policy language they are relying on.
Is it worth going to small claims court over this?
It can be, especially if the disputed amount is modest and within your local small claims court's dollar limit. It is designed to let people resolve disputes like this without hiring a lawyer.
