How Auto Body Shops Should Charge Insurance Companies for Storage Fees

Charging Storage Fees: The Basics

Auto body shops must first confirm the insurance policy's coverage for storage. If the policy allows a reasonable fee, the shop records the daily storage rate, calculates the total days, and invoices the insurer. Accurate timestamps and vehicle identification protect both parties.

Verify the Rate with the Insurer

Most insurers set a maximum daily storage rate. Shops should obtain this figure in writing—via policy excerpts or a signed rate agreement—before posting a vehicle. Using a rate higher than the agreed limit can trigger disputes or claim denials.

Document Every Step

Maintain a log that includes arrival and removal dates, storage location, and any storage‑related incidents. Photographs of the vehicle in the storage area, especially when damage or deterioration is a concern, provide evidence if the insurer questions the necessity of storage.

Communicate Clearly with the Claims Adjuster

Send a detailed invoice that lists each day of storage, the daily rate, and the subtotal. Attach supporting documentation, such as the log and any relevant policy excerpts. Prompt communication reduces the risk of delayed payment.

Handle Disputes Professionally

If the insurer contests the fee, present the documented rate and logs. Offer to negotiate a compromise if the policy's maximum is lower than the shop's rate, but avoid overcharging to preserve long‑term relationships and reputation.