How To Fight Back And Win!
For decades, drivers have been sold a pretty simple promise: pay your insurance premiums every month, maintain the coverage you're required to carry, and when something goes wrong, your insurance company will be there to help clean up the financial mess. Unfortunately, recent data suggests that promise may not always work out the way consumers expect.
Research reported by The Wall Street Journal, based on its analysis of National Association of Insurance Commissioners data, found that 45% of resolved auto liability and medical claims closed without payment in 2025. A decade earlier, that figure was approximately 35%. A ten-percentage-point increase over roughly a decade deserves attention, particularly at a time when drivers are already dealing with expensive premiums, costly repairs and increasingly expensive vehicles.
The numbers become even more interesting when individual insurance groups are examined. Liberty Mutual went from 29% of these claims closing without payment in 2016 to 54% in 2025. State Farm increased from 26% to 47%, Farmers from 19% to 39%, and Progressive from 35% to 46%. Allstate was already at 46% in 2016 and reached 54% in 2025.
There is an important distinction here. A claim closing without payment does not automatically mean an insurance company wrongfully denied a legitimate claim. Claims can close without payment for several reasons, including coverage issues, deductibles, withdrawn claims or payment through another carrier. Still, when the overall percentage climbs from 35% to 45%, it's reasonable for consumers to pay attention to what is happening.
Meanwhile, Insurance Companies Are Making Billions
The financial side of this story makes the numbers even harder to overlook. Several major insurance companies reported billions of dollars in earnings during 2025. State Farm reported approximately $12.9 billion in net income, compared with about $5.3 billion in 2024. Progressive reported approximately $11.3 billion, up from roughly $8.5 billion. Allstate reported approximately $10.2 billion in net income applicable to common shareholders, compared with about $4.6 billion the previous year, while Liberty Mutual reported approximately $6.8 billion in net income attributable to its holding company, up from roughly $4.4 billion.
Those figures aren't perfectly comparable because these companies have different ownership structures and financial reporting methods. What they do demonstrate is that some of America's largest auto insurers are operating enormously profitable businesses at the same time consumers are seeing a growing percentage of resolved liability and medical claims close without payment.
And that brings us to the part of the story that often gets overlooked: what happens to the vehicle while everybody is waiting for the insurance company?
The Tow Company Becomes the Convenient Villain
After an accident, a damaged vehicle may be removed from the scene and taken to a tow yard or storage facility. The owner contacts the insurance company, opens a claim and naturally assumes the process is moving forward. There may be an inspection, requests for documentation, questions about coverage or liability, negotiations over damages, or an eventual decision about whether the claim will be paid.
Unfortunately, none of that necessarily stops storage charges from accumulating. The vehicle is occupying space at a private business, and that business continues providing storage whether an insurance adjuster makes a decision tomorrow or two weeks from tomorrow. By the time the vehicle owner realizes how large the bill has become, the tow company is often the easiest target for their anger.
But consider what the tow company actually controls. It didn't write the insurance policy, collect the monthly premiums, determine coverage, investigate liability or decide whether the claim would be paid.
The tow company is simply the business holding a vehicle while decisions being made elsewhere can dramatically affect how long it remains there.
That's an important distinction because an insurance delay can turn an already expensive accident into an even bigger financial problem.
"Insurance Is Handling It" Isn't Good Enough
Vehicle owners need to stay actively involved after an accident rather than assuming an open claim means every related expense is automatically covered. Ask the insurance company when the vehicle will be inspected, whether storage charges are being covered, how long those charges will be authorized and what happens if the claim is delayed or denied.
At the same time, communicate directly with the tow or storage facility and find out exactly what is being charged. Knowing the daily storage rate and current balance gives you information you need before days turn into weeks and hundreds of dollars potentially become thousands.
The larger lesson from the WSJ data isn't that every unpaid claim represents wrongdoing, nor is it that every tow bill is reasonable. It's that vehicle owners cannot afford to assume someone else is protecting their financial interests after an accident.
You may have paid your insurance premium faithfully for years. Your insurance company may ultimately pay the claim. But while you're waiting for that decision, the meter at the tow yard may still be running.
Data Credit: Claims data referenced in this article is based on The Wall Street Journal's analysis of National Association of Insurance Commissioners data. Financial figures are based on reported 2025 company financial results and filings.
