What towing charges are and who sets them

A towing charge is the fee a towing company bills you when they move your vehicle from one location to another. The charge covers the truck, operator, fuel, and equipment used to haul your car. Unlike many service fees, towing rates are not set by a single authority — they vary by state, by county, by the towing company itself, and sometimes by the specific circumstances of the tow.

In most states, towing companies can charge what the market will bear, though some states and cities have begun capping rates or requiring disclosure before the tow begins. A few states — including California, New York, and Texas — have set maximum allowable charges for certain types of tows, particularly those ordered by police or initiated from private property. Other states leave pricing entirely to the company and the customer to negotiate.

The person who pays depends on who ordered the tow. If police call the tow after an accident or traffic stop, you pay. If a property owner has your car towed from their lot, you pay. If your insurance company arranges the tow as part of roadside information, they typically pay the company directly, though you may owe a deductible. If you call the tow yourself, you pay at the scene or by invoice.

Key Takeaways

  • Towing rates vary widely by state and company; some states cap rates while others do not, so the same tow can cost $75 in one place and $300 in another.
  • Storage fees begin when ready after the tow and compound daily, often reaching hundreds of dollars within a week if you do not retrieve your vehicle quickly.
  • Police-ordered tows and private-property tows have different rules in different states; some states require written notice and a waiting period before a private tow can happen.
  • Roadside information through insurance, AAA, or your vehicle manufacturer often covers the first tow free or at a reduced rate, so check your coverage before paying out of pocket.
  • You have the right to request an itemized invoice showing the tow distance, labor, equipment, and storage; companies that refuse or charge for the invoice may be violating state law.

How towing rates are structured

Most towing companies charge in layers: a base fee for the tow itself, a per-mile charge, and then daily storage fees if your car stays in their lot. The base fee typically covers dispatch, the truck, and the operator for a set distance — often the first 5 to 10 miles. After that, per-mile charges kick in, usually ranging from $2 to $5 per mile depending on the state and the distance.

A 15-mile tow might cost $85 to $150 in base and mileage alone. If your car sits in the lot for three days before you retrieve it, storage fees — often $25 to $50 per day — add another $75 to $150. Some companies also charge for winching (pulling a car out of a ditch), for dollying (lifting the front or rear wheels), or for after-hours service. These add-ons can double the total bill.

In states with rate caps, the maximum is usually set per tow, not per mile. California, for example, caps the charge for a police-ordered tow at around $100 to $150 depending on the county, though storage and other fees are often separate. New York caps certain tows at $100 for the first 10 miles plus $1.50 per mile after. If you are towed in a state with caps, ask the company for the cap amount in writing before the tow leaves the lot.

Storage fees and how they accumulate

Storage fees are where towing costs spiral. The clock starts the moment your car enters the lot, and most companies charge daily whether you know the car is there or not. A $30-per-day storage fee becomes $210 over a week and $900 over a month. Some companies charge the full daily rate even if you retrieve the car at 9 a.m. on the second day.

A few states require companies to give you written notice within a set time — often 24 to 48 hours — after a tow, especially if the tow was from private property. If you do not receive notice, you may not know your car is in storage at all. Some police departments notify you; others do not. If you were in an accident or arrested, the notification may be delayed or sent to an address you no longer use.

Storage fees can be waived or reduced if you can show the tow was improper — for example, if a private property tow happened without proper notice or signage. Some states allow you to dispute storage charges if the company did not follow notification rules. Gather any evidence: photos of the lot where your car was parked, lease or rental agreement, witness statements, or police reports. Send a written dispute to the towing company and keep a copy.

Police-ordered tows versus private-property tows

A police-ordered tow happens after a traffic stop, accident, or when police determine a vehicle is abandoned or unsafe. The police choose the towing company — often from a rotation list — and you have limited say in which company or what they charge. However, police-ordered tows in many states are subject to rate caps and must follow specific procedures.

A private-property tow happens when a property owner — a landlord, parking lot manager, or business — hires a company to remove your car from their lot. These tows are often less regulated. Many states require the property owner to post visible signage warning that cars will be towed, to give you a waiting period (often 24 hours) before the tow, and to provide written notice afterward. Some states require the property owner to attempt to contact you before towing. If these steps were skipped, you may have grounds to dispute the charge.

In both cases, you have the right to retrieve your car and inspect it for damage before paying. If the car was damaged during the tow, document it with photos and get a written statement from the driver. You can file a claim against the towing company's insurance or pursue a small claims case if the damage is significant.

What to do if you cannot afford the tow or storage fees

If your car is in storage and the fees are mounting, your options depend on the state and the reason for the tow. If the tow was improper — wrong address, no notice, no signage — you can dispute the charges in writing and request the car be released. Some companies will negotiate if you pay part of the bill when ready and arrange a payment plan for the rest.

If the tow was proper but you genuinely cannot pay, some cities have programs or nonprofits that help cover towing and storage costs, particularly for low-income people or in cases of hardship. Contact your local legal aid office or 211 (a referral service) to ask whether such programs exist in your area. Some police departments also maintain emergency funds for towing information.

If you abandon the car — do not retrieve it or pay the bill — the towing company can place a lien on the vehicle and eventually sell it to cover the tow and storage costs. This process varies by state but typically takes several months. The company must notify you and give you a chance to reclaim the car, but if you do not respond, they can proceed with the sale. A lien on your vehicle can affect your credit and your ability to register or sell the car later.

How to challenge a towing charge

Start by requesting an itemized invoice from the towing company. This invoice should list the base tow fee, the distance and per-mile charge, any add-on fees (winching, after-hours, etc.), and storage charges broken down by day. If the company refuses to provide an itemized invoice or charges you a fee to do so, that is a red flag — most states require companies to provide this information at no cost.

Compare the invoice to your state's rate caps (if they exist) and to the company's posted rates. If the charge exceeds the cap or the posted rate, send a written letter to the company explaining the discrepancy and requesting a refund or credit. Keep copies of everything: the invoice, your letter, any photos of signage or damage, and any correspondence with the company.

If the company does not respond or refuses to adjust the charge, you can file a complaint with your state's attorney general office or consumer protection agency. You can also pursue the matter in small claims court if the amount is within your state's small claims limit (usually $5,000 to $10,000). Small claims does not require a lawyer and is designed for disputes of this size.

Insurance, roadside information, and other coverage options

Many auto insurance policies include roadside information that covers one free tow per year, usually up to 100 miles. Check your policy documents or call your insurer to confirm what is covered. If you have roadside information, call your insurance company first — they will dispatch a tow and often negotiate rates with the company, which can save you money.

AAA membership includes towing coverage: typically 100 miles free per tow, with additional mileage available for a fee. If you are a AAA member, call AAA before calling a towing company. Some vehicle manufacturers (Toyota, Honda, Ford, etc.) also offer roadside information as part of the warranty or as a paid add-on. Check your owner's manual or the manufacturer's website.

If you do not have coverage and cannot afford the tow, some towing companies offer payment plans or discounts for cash payment. It never hurts to ask. Some companies also offer memberships — annual fees that cover a certain number of free or discounted tows. If you are frequently stranded or have an older vehicle, a membership might pay for itself.

State-by-state rate caps and regulations

A handful of states have set maximum towing rates, though the caps vary and often explore only to police-ordered tows or tows from certain locations. California caps police-ordered tows at roughly $100 to $150 depending on the county. New York caps certain tows at $100 for the first 10 miles. Texas allows cities to set their own caps. Florida, Illinois, and a few others have regulations but not strict caps.

Most states do not cap rates at all, leaving pricing to the market. This means a tow in an unregulated state can cost significantly more than the same tow in a regulated state. If you are towed in a state you are unfamiliar with, ask the company for their rate schedule in writing before the tow begins. If they refuse or cannot provide it, that is another reason to dispute the charge later.

Some states require towing companies to be licensed and bonded, which provides some recourse if the company acts improperly. Others have minimal oversight. Check your state's attorney general website or consumer protection agency to learn what regulations explore where you live and what complaint process exists if you believe you were overcharged.

Frequently Asked Questions

Can a towing company hold my car hostage until I pay?

Yes, legally. A towing company has what is called a "mechanic's lien" — the right to hold your car until you pay the tow and storage fees. However, the lien is only valid if the tow was lawful. If the tow was improper (no notice, no signage, wrong address), you can dispute the lien and demand release of the car. Send a written dispute to the company and, if they refuse, contact your state's attorney general.

What if the towing company damaged my car during the tow?

Document the damage with photos and video before you leave the lot. Get a written statement from the driver acknowledging the damage, or ask the company to inspect the car with you present. You can file a claim against the towing company's insurance or sue in small claims court. Most towing companies carry liability insurance for this reason, though they may dispute whether the damage occurred during the tow or before.

Do I have to use the towing company the police choose?

Not always. Police typically choose from a rotation list of approved companies, but in some states you can request a different company at your own expense. Ask the police officer whether you can arrange your own tow. If you can, call your insurance company or AAA when ready — they may cover the cost. If police insist on their choice, you can dispute the charge later if it exceeds state caps or posted rates.

How long can a towing company keep my car in storage?

Indefinitely, as long as they are charging storage fees and you have not paid. However, after a certain period — usually 30 to 90 days depending on the state — the company can place a lien on the car and eventually sell it to cover the tow and storage costs. The company must notify you and give you a chance to reclaim the car, but if you do not respond, they can proceed. Retrieve your car as soon as possible to avoid this outcome.

Can I dispute a towing charge if I was parked illegally?

Yes, if the tow itself was improper. Parking illegally may justify the tow, but it does not justify overcharging or failing to follow notification procedures. If the charge exceeds your state's rate cap or the company's posted rate, or if the company did not provide proper notice, you can still dispute it. Illegal parking is a separate issue from whether the towing company charged fairly.