Car was stolen 3 months ago!

What is the name of your state?
I live in Califonia
Three months ago my car was stolen. I made a report to the police department that day. I was informed yesterday 09/21 by the police that my vehicle had been found. It seems that the car was parked on Housing Authority Property and they had the vehicle towed by a private contract company. I went to view the vehicle and found it to be stripped to the point of uselessness to me as I am a student and can not afford to put it all back together. When I told this to the towing company they told me they would gladly take care of it for me if I was willing to pay the towing fee, a total of $205. I then would have to sign the car over to them, and they would no doubt piece it out for even more $. Or I have the option of paying the tow, storage, and another tow to take it home with me. The tow company said if i don't pay in thirty (30) days they will turn me into a collection agency!
Is this right can they do this?! Doesn't my liability end when the car is stolen and I make the report? This is insane not only do I lose the car and everything in it, but now I have to pay for it being stolen? There is something wrong here!

Somebody please help me, I am a poor starving college student who doesn't want a bad report on his credit via a collection agency!

Unfortunately, no, your liability does not necessarily end with the police report.

Usually there are two options - if fully insured, you should have reported it to your insurance company and they can pay you off for the car. The second option is to release the car to the tow company. They will sell or purchase it in a lien sale after 30 days anyway. However, if the amount they receive at auction or by parting it out is not sufficient to meet the cost of the tow they might try to go after you for the difference.

I have yet to see this go to sivil court (suing for the difference) so I do not know how it would turn out. The threat may be a bluff, I just don't know.

If it were me, I would offer to just sign the car over to them. Or, if it were feasible to repair, pay to get it out and then fix it. There really aren't a whole lot of other options that I am aware of.

- Carl

i think i already know the answer, but here i go:

did you report the theft to your auto insurance company?