Car damaged while impounded

Probably the most common reason for a car to be impounded is that it was simply parked illegally. If you walk out to where you thought your car was, and find that it is missing, check the parking signs in the area. If you were in a “No Parking” or a “Tow Away” zone, that’s probably your answer. Look for signs for towing.

Go to impound lot or police station. In some cases, you may need to report to the police station first, in order to clear up the reason that your car was impounded, and then report to a different lot to collect the car. Be sure that you get a report or a release from the police station,

Let's say your car is damaged while it's being towed to be impounded. Because the towing company is at fault, it would be the company's responsibility to cover the cost of any damages. You could go through your own insurance company since financed cars are required to have full coverage (liability, collision, and comprehensive).