Indiana Towing Laws: Your Rights, Fees, and Disputes

Indiana towing laws cap storage fees, require the towing company to identify and notify you within three business days, let you call your own tow truck when you break down, and give you a fast way to get a disputed vehicle back by paying 75 percent of the bill and posting a bond for the rest while the Attorney General reviews your complaint. Violations count as deceptive consumer practices, which is what gives the rules teeth.

When Your Vehicle Can Legally Be Towed

There are three lawful bases for a tow in Indiana: abandonment on public property, an unauthorized vehicle in a properly posted private tow-away zone, and a vehicle that has become a safety hazard.

Abandoned on a Public Road

An officer who believes a vehicle is abandoned places a notice tag on it. The tag records the date, time, officer’s name, agency, and contact information, and it warns that the vehicle will be removed after 24 hours on an interstate or state highway, or 72 hours on any other public road. It also puts the owner on notice that removal, storage, and disposal costs are their responsibility.¹

Private Property Tow-Away Zones

A commercial property owner can have a vehicle towed without the driver’s permission only if a conspicuous, clearly visible sign is posted at the tow-away zone. The sign has to state that the area is a tow-away zone, list contact information, and describe who is allowed to park there. Cities and counties can adopt their own signage ordinances, so the specifics can vary locally.²

One exception: signage is not required if the vehicle qualifies for removal under the abandoned vehicle provisions of IC 9-22-1-16.²

Safety Hazards

If a disabled vehicle is causing a hazard, a law enforcement officer or authorized state, county, or municipal personnel can release it to a towing company for removal. In that situation, the officer can also override the owner’s choice of tow company when the owner’s preferred company cannot get there quickly enough and the vehicle is blocking traffic, creating a hazard, or sitting somewhere it cannot legally remain.³

Your Right to Choose the Tow Company

When you are at the scene of a breakdown, Indiana law lets you call the tow company of your choice, either directly or through your insurer’s or auto club’s roadside assistance program. A tow truck operator who shows up unsolicited cannot hook up your car without your authorization unless law enforcement has directed the tow.⁴

The right has one important limit. If your preferred company cannot arrive promptly and your vehicle is blocking traffic or creating a hazard, the officer on scene can call a company from the rotation list instead.⁴

Fee Caps and What They Cover

Under the Towing Services Act, all towing, cleanup, and storage fees have to be reasonable and cannot exceed the storage rates set in the abandoned vehicle statute.⁵

Total storage costs are capped at $2,000 for a standard-sized vehicle and $2,500 for a vehicle at least 30 feet long, such as an RV or large trailer.⁶ Those numbers are hard caps on accumulated storage, not daily rates. The actual towing charge, cleanup costs, and any other lawful fees sit on top of the storage amount, and the owner is responsible for them.

Notification and Getting Your Vehicle Back

Within three business days of the tow, the towing company or storage facility must search the National Motor Vehicle Title Information System (or an equivalent database) to identify the owner and lienholder, and then follow the notification procedures in the abandoned vehicle statutes.⁷ Every day of delayed notice is another day of storage fees. If you think your vehicle has been towed and no notice has arrived, don’t wait. Call local law enforcement and area towing companies.

Once you pay all lawful fees, the company has to release the vehicle to you or to a lienholder. You have the right to inspect the vehicle during normal business hours before accepting release, which matters if you suspect damage from the tow itself.⁸

Payment forms catch people off guard. Towing companies must accept cash, certified checks, insurance checks, and money orders. Credit and debit cards are optional at the company’s discretion. Call ahead to confirm what the lot will take before you drive over.⁸

If you don’t claim the vehicle, disposal can begin no sooner than 30 days after removal, and the process can end with a public auction sale. You still owe the towing and storage charges even if the vehicle is sold.

How to Dispute a Tow or Overcharge

Indiana gives you a specific way to fight back without leaving the car on the lot. If you dispute the charges, you can secure the release of the vehicle by paying 75 percent of the invoiced amount, posting a bond for the remaining 25 percent, and filing a complaint with the Attorney General alleging a violation of the Towing Services Act. Once the towing company has all three, it has 24 hours to release the vehicle.⁹

The complaint goes to the Attorney General’s Consumer Protection Division, which has explicit authority to receive and investigate complaints under the Towing Services Act.¹⁰ You can also file a consumer complaint directly through the office’s website.¹¹ Beyond the administrative route, an owner can bring a civil suit to recover damages caused by an unlawful tow.

Penalties Against Towing Companies

A violation of the Towing Services Act is treated as a deceptive consumer practice under Indiana’s Deceptive Consumer Sales Act (IC 24-5-0.5), which offers stronger remedies than a plain contract claim. The Attorney General can investigate on its own or in response to complaints and take enforcement action.¹⁰ For an individual owner, the deceptive practices framework opens the door to damages beyond a refund, including the possibility of treble damages in certain circumstances.

If Your Vehicle Was Damaged

Document any damage before the vehicle leaves the lot. Photograph everything and ask the towing company for its liability insurance information. Many operators carry garagekeepers liability insurance, which covers damage to vehicles in their care from events like collision, fire, theft, or vandalism. Coverage and deductibles vary, and Indiana law does not require a specific level of garagekeepers coverage.

If the towing company denies responsibility or its coverage falls short, your own auto insurance may help. Comprehensive coverage typically handles non-collision damage, including damage during towing. Filing an insurance claim is usually more practical than a lawsuit for moderate damage, but civil litigation is available if the amount is significant and the company won’t cooperate.

Extra Protections for Active-Duty Servicemembers

Active-duty military personnel get additional protections under the federal Servicemembers Civil Relief Act. A towing company or storage facility that holds a lien on a servicemember’s vehicle cannot foreclose on or enforce that lien during military service or for 90 days after without a court order. The SCRA defines “lien” broadly to include storage, repair, and cleaning liens.¹²

If a facility does seek a court order, the court must stay the proceedings or adjust the obligation when the servicemember’s ability to pay is materially affected by military service. A servicemember who is deployed or stationed away and discovers a tow should contact the installation’s legal assistance office. In certain circumstances, the SCRA also allows early termination of motor vehicle leases without penalty.¹³

1
Indiana General Assembly. Indiana Code 9-22-1-11 – Placement of Notice Tags for Abandoned Vehicles
2
Indiana General Assembly. Indiana Code 24-14-4-2 – Commercial Private Property Tow-Away Zones
3
Indiana General Assembly. Indiana Code 24-14-3-3 and 24-14-3-4 – Permitted Acts and Safety Hazard Vehicles
4
Indiana General Assembly. Indiana Code 24-14-3-3 – Permitted Acts by Owner or Operator of Motor Vehicle
5
Indiana General Assembly. Indiana Code 24-14-8-1 – Towing, Clean-Up, and Storage Fees
6
Indiana General Assembly. Indiana Code 9-22-1-4 – Responsibility and Liability of Owner; Limitation of Costs for Storage
7
Indiana General Assembly. Indiana Code 24-14-6-1 – Required Actions
8
Indiana General Assembly. Indiana Code 24-14-7-2 – Release of Motor Vehicle
9
Indiana General Assembly. Indiana Code 24-14-7-3 – Disputed Release of Motor Vehicle
10
Indiana General Assembly. Indiana Code 24-14-10-2 – Jurisdiction of Attorney General
11
Indiana Attorney General. File a Complaint
12
U.S. Department of Justice. Servicemembers Civil Relief Act – Section 537, Enforcement of Storage Liens
13
U.S. Department of Justice. Know Your Rights – A Guide to the Servicemembers Civil Relief Act