Can You Claim Towing and Other Transport Costs After a Car Accident in NSW?

A car accident can leave you dealing with more than the cost of repairing the vehicle.

If the vehicle cannot be driven, you may need to arrange towing, pay for alternative transport and manage other expenses before repairs even begin.

In NSW, some of those expenses may form part of a property damage claim where they were caused by the accident and are reasonable in the circumstances.

The key issue is evidence: what was paid, why it was necessary and how the expense was connected to the accident.

Towing costs

If your vehicle has to be towed because it is damaged in an accident, the towing fee may be recoverable as part of a property damage claim.

Legal Aid NSW identifies towing as one of the types of loss that can arise from a car accident and recommends keeping invoices and receipts for towing fees.

The NSW Uniform Civil Procedure Rules also expressly recognise claims for the towing of a motor vehicle where the towing results from damage alleged to have been caused by another person’s negligence.

That does not mean every towing charge will automatically be recoverable. As with other heads of loss, the amount claimed should be connected to the accident and capable of being proved.

What should you keep?

If your car is towed, keep:

• the towing invoice;

• the towing company’s details;

• proof of payment;

• the date and location of the tow;

• the location the vehicle was taken to;

• photographs showing why the vehicle could not safely be driven; and

• any insurer, repairer or roadside-assistance correspondence relating to the tow.

These records can help establish both the fact of the expense and why the tow was necessary.

For a broader evidence checklist, see What Evidence Should You Collect After a Car Accident in NSW?.

What about storage fees?

Storage charges can sometimes arise when a damaged vehicle is held at a towing yard, repairer or other facility.

Whether a particular storage cost can be recovered will depend on the circumstances. Important questions can include:

• why the vehicle needed to remain in storage;

• how long it remained there;

• whether the charge was reasonable;

• whether there was avoidable delay in moving, assessing or repairing the vehicle; and

• whether the amount is supported by an invoice.

If storage fees are accumulating, it is sensible to deal with the vehicle promptly. A claimant is generally expected to act reasonably and avoid unnecessary escalation of loss.

Replacement vehicle costs

Towing is often only the first transport expense.

If the damaged vehicle cannot be used, it may be necessary to hire a replacement vehicle while repairs are carried out.

Legal Aid NSW states that reasonable replacement vehicle costs may be claimable and notes that reasonableness can involve considering:

• whether the replacement vehicle reasonably meets your needs;

• whether the period of hire is reasonable; and

• whether a less expensive form of transport would reasonably have met those needs.

The NSW Uniform Civil Procedure Rules also expressly refer to the cost of hiring a replacement car in Local Court motor vehicle damage claims.

The circumstances matter. A person who needs a vehicle for work, school drop-offs, mobility, caring responsibilities or ordinary household commitments may have different transport needs from someone who has another suitable vehicle readily available.

Taxis, rideshare and other temporary transport

Sometimes there is a gap between the accident and obtaining a replacement vehicle.

For example, a car may be towed from the scene and the owner may need a taxi or rideshare service to get home, reach a repairer or collect a hire vehicle.

Reasonable transport expenses caused by the loss of use of the damaged vehicle may be relevant to the overall claim, depending on the facts.

Keep every receipt and record the reason for each trip. Small expenses are much easier to assess later when there is a contemporaneous record explaining why they were incurred.

The importance of reasonableness

Recoverable loss is not simply a matter of adding up every expense that occurred after an accident.

A claimant needs to show a sufficient connection between the accident and the expense, and the amount claimed should be reasonable.

This is why evidence matters.

An invoice proves the amount charged. Photographs may show that the vehicle could not be driven. Repair records can establish the period of unavailability. Hire agreements can show the dates and cost of replacement transport.

Together, those documents tell the story of the loss.

What if the other driver or insurer disputes the cost?

It is common for disputes to arise about the amount of a claim even where liability for the accident itself is accepted.

An insurer or other party may question:

• whether towing was necessary;

• whether the towing amount was reasonable;

• whether a vehicle remained in storage for too long;

• whether the replacement vehicle was more expensive than necessary;

• whether the hire period was excessive; or

• whether there is enough evidence to prove the expense.

Keeping detailed records from the beginning can make it much easier to respond to those issues.

Putting the claim together

A motor vehicle property damage claim may involve several different heads of loss.

Depending on the circumstances, these can include:

• reasonable repair costs;

• the pre-accident value of a written-off vehicle, less relevant salvage value;

• towing;

• reasonable replacement vehicle costs;

• damaged personal property; and

• certain lost income where a vehicle is used to earn income.

Each category should be separately supported by appropriate evidence.

Legal Aid NSW recommends keeping invoices and receipts for accident-related losses, including towing fees and replacement vehicle costs, and notes that evidence of loss is needed if a claim proceeds to court.

For a broader overview of the types of loss that may be recoverable, see What Can You Recover After a Motor Vehicle Accident in NSW?.

How K+M Legal can help

Disputes about motor vehicle property damage often extend beyond the repair invoice.

Towing, replacement vehicles, loss of use, damaged property and other accident-related expenses can all raise questions about causation, reasonableness and evidence.

K+M Legal can assist with assessing the recoverable components of a claim, identifying the evidence needed, dealing with insurers and third parties, and pursuing recovery where appropriate.

If you are unsure whether a particular towing, transport or accident-related expense can form part of your claim, obtaining advice early can help ensure the loss is properly documented.

This article provides general information only and does not constitute legal advice. The losses that may be recoverable will depend on the facts of each matter.