Auto Policy Property Damage Provision Does Not Cover Towering and Storage Fees

While not published, an Indiana Court of Appeals affirmed an insurer’s Motion to Dismiss with prejudice and confirmed that an auto policy’s property damage coverage is not triggered by towing and storage fees. Bland's, LLC v. Shelter Mut. Ins. Co., 193 N.E.3d 398 (Ind. Ct. App. 2022), transfer denied, 201 N.E.3d 608 (Ind. 2023).

After accruing more than $3,000 in fees from towing a wrecked car and storing it, a towing company sued the driver’s insurance directly, arguing that state statute and the policy itself require payment. The appellate court affirmed the trial court’s order to dismiss with prejudice for failure to state a claim upon which relief could be granted, and noted that noting in the relevant state statutes would require an insurer to pay a towing company. Since the policy’s coverage was only triggered by property damage, the act of towing and storing the car did not trigger coverage.

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