On March 6, my 1996 Olds was towed from in front of my house. I live in a two-familiy home in Bergen County, NJ and we only have street parking. On February 25th I insured my car with Geico and they asked me to wait 24hrs before registering it. On Feb 26th I registered the car and I have all the paperwork to prove it. When I went to the police station to ask what the problem was they told me my car was not registered. I showed them the insurance and registration and they said their computer said it was not registered and to contact the towing service.
So, that is what I did, only to find out that they could not do anything without a release from the police. As this is the week end, I will be paying over $100 for the tow and $40 dollars for each day they have it in their possession.
I don't understand how this could happen. If I did not have insurance and registration, OK but I do. I spent over $500 to insure and register the car only to have to pay more to get it out of the pound. I am a single mother of three, I am not rich but I am law abiding. I don't mind paying when I am wrong, but this is such an injustice.
Can anyone help? Any advice would be appreciated.

Registration and proof of insurance is separate. When an insurance expires, the insurance company may contact motor vehicle. Check and make sure the registration sticker is present and up to date as well.

Pay it and I'd take the police to small claims court to recover the money.

And the car had a valid tag on it?

You get from the police a release by provideing them all the information they require. If your insurance company did not notify the state computer system, be sure they did, also make sure your policy did not laspe again since you got it