Auto Insurance Claims: insurance company, tow times, insurance procedures

Question
Hi Richard,

    I'm the owner of tow company D & M Towing, & had recently read an article in Tow Times Magazine, Nov. 2010.  It's titled, "Salvage Vehicle Abandonment by Insurance Companies".
In it the article claims the Insurance company is bound to pay for the vehicle, even if the person they're insuring only has liability, under the "preserving the salvage law".  I would love to know how to go about pursuing this, but wanted to try & get some information from someone familiar w/ insurance procedures.  Thank you, so much.  Denise

Answer
Hi Denise,

I have never heard of such a thing. If there is no coverage and the insurance company does not pay out a claim, I can't see that any law could force them to take possession and incur expense.

You should likely contact Tow Times Magazine and ask them for the source of their information. They may be able to give you the actual law title so you can look it up. If not they should at least be able to clarify their article for you.

I hope this helps
Richard Hixenbaugh