Indiana’s impound storage laws don’t set a single statewide price cap. Towing and daily storage fees must be “reasonable” and are set locally between towing companies and law enforcement, so what you pay depends on where your vehicle was taken. Once your car is in the lot, storage charges start accruing right away, and after the required notice is sent you generally have 15 to 20 days to claim it before the tow company can sell it at public auction.
What You’ll Pay
Indiana law requires towing and storage fees to be reasonable and ties them to rates agreed on between towing companies and local law enforcement agencies or Indiana State Police districts.1Indiana General Assembly. Indiana Code Title 24 Article 14 – Towing Services There is no uniform dollar figure. In Indianapolis, the maximum non-consensual tow fee is $150, and storage runs $30 per day once the vehicle has been at the lot for 24 hours.2indy.gov. DBNS Tow Programs Other jurisdictions may charge more or less.
Every day the vehicle sits costs you money, and most locations offer no grace period. A car left two weeks can easily accumulate $500 or more in storage on top of the initial tow. Acting in the first day or two makes a real difference.
Accepted Payment Methods
Indiana law specifies what a towing company must accept: cash, certified checks, insurance checks, and money orders. Credit and debit cards are optional, so not every impound lot takes plastic.3Indiana General Assembly. Indiana Code 9-22-1-8 – Release of Stored Vehicle or Property Call before you show up. The lot must also give you an itemized receipt.
Inspection Fees
If you need to inspect the vehicle or grab personal items before paying the full release amount, the towing company can charge an inspection fee. That fee has to be refunded once you pay the full towing and storage costs to get the vehicle released.3Indiana General Assembly. Indiana Code 9-22-1-8 – Release of Stored Vehicle or Property
How to Get Your Vehicle Back
Under Indiana Code 9-22-1-8, the impound lot must release your vehicle once a properly identified owner or lienholder appears and pays all towing, storage, and allowable fees.3Indiana General Assembly. Indiana Code 9-22-1-8 – Release of Stored Vehicle or Property Bring your vehicle title or registration and a valid photo ID. If you don’t have the title, contact your local BMV branch before heading to the lot.
If the tow followed a suspended license or a lapse in insurance, expect to show proof the underlying problem is fixed, such as a reinstated license or a current insurance card. The lot itself may not enforce this, but law enforcement can place a hold that blocks release until conditions are met. Indiana State Police procedure requires officers to specify the terms of release when ordering a tow.4Indiana State Police. Towing and Impounding of Vehicles – Standard Operating Procedure
Towing companies must be reachable by phone during business hours and maintain a 24-hour number for messages. They must return all calls within 24 hours, except when severe weather or emergencies interfere.3Indiana General Assembly. Indiana Code 9-22-1-8 – Release of Stored Vehicle or Property A lot that won’t return your calls or refuses to let you retrieve the vehicle during posted hours is a problem worth documenting.
How Long Before They Can Sell It
Indiana law gives towing companies a lien on any abandoned vehicle they tow, covering the reasonable value of towing and related costs.5Indiana General Assembly. Indiana Code 9-22-1-21.5 – Liens on Vehicles; Public Sale or Auction If nobody claims the vehicle and pays those costs, the lienholder can eventually sell it.
After the required notice is mailed to the registered owner and any lienholders, you generally have 20 days to appear and claim the vehicle. In consolidated cities like Indianapolis, the period is 15 days. If no one shows up in that window, the vehicle can be sold at public sale or auction.6Indiana General Assembly. Indiana Code 9-22-1-23 – Public Sale by Unit or Holder of Mechanic’s Lien; Notice The sale must be publicly noticed at least one week in advance.
For vehicles worth more than $3,500, determined in a commercially reasonable manner, the sale must be conducted as a public auction.5Indiana General Assembly. Indiana Code 9-22-1-21.5 – Liens on Vehicles; Public Sale or Auction Proceeds go first to removal, storage, and disposition costs. If the towing company violates the procedures in Sections 9-22-1-21.5(b) or (c), it can be held liable for civil damages to anyone harmed.
When Indiana Police Can Impound a Vehicle
Knowing what the law actually authorizes helps you judge whether the tow was proper. The common triggers:
- A vehicle left unattended on a public road for more than 72 hours may be classified as abandoned. On interstates and state-designated highways, that window shrinks to 24 hours. Before towing from a public road, officers must attach a conspicuous notice tag.7Indiana General Assembly. Indiana Code 9-22-1-11 – Placement of Notice Tags for Abandoned Vehicles
- If the driver lacks a valid license or endorsement, the vehicle may be towed. Indiana State Police standard procedure specifically authorizes impoundment when the driver is not properly licensed.4Indiana State Police. Towing and Impounding of Vehicles – Standard Operating Procedure
- Operating without financial responsibility is a separate offense under Indiana Code 9-25-8-2. A stop for no insurance can lead to impoundment if no licensed, insured driver is available to take the vehicle.8Indiana General Assembly. Indiana Code 9-25-8-2 – Operating or Permitting Operation Without Financial Responsibility
- A vehicle used in a crime or containing evidence of a crime can be impounded as part of the investigation.
- When a driver is arrested for operating while intoxicated, the vehicle is towed at the driver’s expense.
- If a vehicle sits on someone else’s private property for more than 24 hours and appears abandoned, the property owner can have it towed. In an emergency where the vehicle blocks business operations or creates a safety hazard, the property owner can have it removed immediately.9Indiana General Assembly. Indiana Code 9-22-1-16 – Towing Vehicle From Private Property
Disputing a Tow You Believe Was Wrong
In Indianapolis, the Department of Business and Neighborhood Services allows vehicle owners to file an Abandoned Vehicle Tow Dispute Form requesting administrative review. The review looks at whether towing procedures were followed and whether the vehicle actually met the legal definition of abandoned when towed.2indy.gov. DBNS Tow Programs If the city finds the tow was improper, fees may be waived or reduced.
Outside Indianapolis, the dispute process depends on the local jurisdiction and the agency that ordered the tow. Start with the agency listed on the notice tag or impound paperwork. If no administrative process is available or you believe the tow violated your rights, you can pursue the matter in court. Indiana Code 9-22-1-21.5(d) creates a cause of action for civil damages when a towing company doesn’t follow the required procedures.5Indiana General Assembly. Indiana Code 9-22-1-21.5 – Liens on Vehicles; Public Sale or Auction
Document everything from the moment you learn about the impoundment: the condition and location of the vehicle when it was towed, whether a notice tag was actually attached, the fees charged, and any communication with the tow company. That record matters in either an administrative review or a court claim.
If You Still Owe on the Vehicle
Your lender holds a lien and has an independent right to claim the vehicle from the lot. Under Indiana Code 9-22-1-8, the tow company must release the vehicle to a properly identified lienholder who pays all outstanding fees.3Indiana General Assembly. Indiana Code 9-22-1-8 – Release of Stored Vehicle or Property Your bank can retrieve the vehicle, pay the impound costs, and add those charges to your loan balance.
Lienholders also receive notice before any public sale. If the 20-day (or 15-day in Indianapolis) window passes without anyone claiming the vehicle, the lienholder had the same opportunity to act.6Indiana General Assembly. Indiana Code 9-22-1-23 – Public Sale by Unit or Holder of Mechanic’s Lien; Notice Contact your lender immediately if you’re in this situation. Letting them find out through impound notifications usually makes things worse.
Protections for Active-Duty Servicemembers
Under the Servicemembers Civil Relief Act, a tow company or impound lot holding a lien on a servicemember’s vehicle cannot foreclose on that lien during the servicemember’s period of military service and for 90 days afterward without first obtaining a court order. The SCRA’s definition of lien is broad and covers liens for storage, repair, cleaning, or any other reason. Violating this protection is a federal misdemeanor punishable by up to one year in prison and fines.10Office of the Law Revision Counsel. 50 USC 3958 – Enforcement of Storage Liens If you’re deployed or on active duty and learn your vehicle has been impounded, notify the facility in writing of your military status and contact a legal assistance office on your installation.
If You Have Filed for Bankruptcy
Filing for bankruptcy triggers an automatic stay that generally stops creditors from acting against you or your property. A 2021 U.S. Supreme Court decision, City of Chicago v. Fulton, held that simply holding onto a debtor’s vehicle after a bankruptcy filing does not violate that stay. The tow company doesn’t have to release your car just because you filed.11Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay
To recover the vehicle, you would need to file a turnover motion in bankruptcy court under Section 542 of the Bankruptcy Code. The tow company still cannot sell the vehicle and apply the proceeds to pre-bankruptcy fees; that would violate the stay. Bankruptcy prevents a forced sale but doesn’t automatically get you your car back, and storage fees can keep accruing while you wait, so this is a situation where speaking with a bankruptcy attorney quickly matters.