Incompetent people
 

Take the insurance $. Buy the H2 back and fix it yourself. I bet you will come out way ahead.

file a separate claim with tow company

Exactly, if insurance was willing to fix then the tow company royally f'ed up and now it's totaled, major claim against the tow company.

I'd agree. The towing company knows that its not a good idea to drag something onto a rollback that does not have wheels on it. In a off-road crash scenario that is one thing but obviously just sitting without wheels I feel like they should have waited to secure a set of temporary wheels from a junkyard or something to make the vehicle roll.

I'd still also be buying it back from the insurance company and fixing it myself. Unfortunately though, it will permanently have a salvage title now which will hurt its value but only very slightly as long as you get a lot of good pictures to clearly document exactly why it has a salvage title. Print that all out and keep it in a binder to forever include with the vehicle.

I know how everyone feels but keep in mind, the towing company is contracted to tow the vehicle by either the insurance company or by the law enforcement/municipality where the vehicle is recovered. In this capacity they are only providing a removal service and insurance is responsible to financially recover the vehicle. Taking out a claim on them will do no good as they are not deemed liable.

They are liable if they damage it by improper towing techniques.

Exactly. They should know not to drag a 5000lb vehicle with no tires/rims on pavement. What, they've never heard of a tow dolly?

Thanks for everyone's responses on my stolen H2.
After talking with ins company, both tow companies and some legal folks, I am SOL for anything tow companies did. Everyone pretty much said that I would need video proof of the tow companies loading my truck incorrectly to have any claim against them. They would just claim the thieves did the damage. As far as buying it back, I just didn't have the wherewithal to do that kind of rebuild, so I took the payoff and let it go.

I have since found and purchased an '06 H2 Special Edition, just waiting on some agreed upon repairs and I'll be Humming once again.

Outstanding! You can always look at it as "Time for a change." Enjoy your new H2.