Across the U.S., towing fee laws are evolving in 2026. Multiple states and local governments are updating regulations that govern how towing companies can charge for service, how transparent those fees must be, and what protections consumers and vehicle owners have when cars are towed. The changes reflect growing attention from lawmakers to ensure fair and transparent pricing while protecting drivers from predatory practices.
This article explains the key legal changes taking effect in 2026, examples from specific states, and what tow truck operators should know to stay compliant and competitive.
Why New Towing Fee Laws Are Being Adopted
Legislators and regulators are responding to concerns about excessive or unclear towing and storage fees that can burden vehicle owners, including truck drivers and fleet operators. Some laws focus on establishing fee caps, requiring clear disclosure of rates and itemized billing, and updating consumer protections when a vehicle is towed by a city, private property owner, or towing business.
In addition, federal interest in curbing predatory or hidden fees has increased. The U.S. Department of Transportation has publicly supported efforts to ban “junk fees” related to towing, arguing that excessive or undisclosed charges disproportionately harm truckers and drivers who rely on their vehicles for livelihood.
State Examples of New or Updated Towing Fee Laws
California: Assembly Bill 987 and Fee Transparency
California passed Assembly Bill 987, which targets practices around towing and storage fees that lawmakers deem “unreasonable.” The bill defines many common add-on charges, such as after-hours fees, security fees, pull-out fees or holiday storage fees, and places limits on how they can be applied, particularly if the added costs exceed typical daily rates. This law is intended to protect drivers from unexpected fee ballooning when a vehicle is towed and stored.
North Carolina: House Bill 199 and Nonconsensual Fee Rules
North Carolina’s House Bill 199 lays the foundation for significant reforms in nonconsensual towing fee practices. It requires towing businesses to use standardized itemization for charges, creates a towing and recovery commission to oversee fair fee practices, and limits what fees can be charged for storage or handling of trailers or freight. The law also mandates that nonconsensual towing companies accept common payment methods and imposes consumer protections if improper fees are charged. These provisions begin taking effect in 2026.
Utah: Consumer Bill of Rights for Tow Fees
Utah’s Consumer Bill of Rights Regarding Towing 26,001 lbs or More becomes effective January 1, 2026. It sets maximum towing and administrative fees, storage charges, after-hours fees and fuel surcharges for non-consensual tows on heavy vehicles. Importantly, the law gives consumers the right to verify that fees were properly recorded in the state’s impound database and to challenge overcharges.
Local Ordinances and Fee Schedules
Cities and counties are also updating their towing and parking enforcement ordinances. For example, the City of Gainesville voted on amendments to its towing and immobilization fee schedules to align with regional norms, reduce inconsistencies, and make enforcement more transparent. These local changes reflect a trend toward regular review of fee structures at all levels of government.
Key Themes in 2026 Towing Fee Law Changes
Across the different legislative efforts, several themes emerge:
Fee Transparency and Itemized Billing
Governments are increasingly requiring towing companies to give fully itemized bills that break out base tow cost, mileage, storage fees and any ancillary charges. Lack of transparency was a major complaint from vehicle owners and operators.
Consumer Protections Against Excessive or Unreasonable Fees
New laws target fee practices that go beyond standard rates without justification, such as holiday storage fees that are significantly higher than posted daily rates, or surcharges that apply without prior disclosure.
Standardization of Towing Practices
State laws like North Carolina’s House Bill 199 require standardized forms and clear fee limits, and sometimes include provisions for permitting and oversight of nonconsensual towing. These reforms champion fairness and reduce disputes between owners and towing companies.
Reporting and Accountability
laws such as Utah’s Consumer Bill of Rights require towing companies to enter towed vehicles into state databases, allowing consumers to verify whether fees and procedures were correctly followed. This is part of a broader push toward accountability in the towing industry.
How Operators Should Adapt to New Laws
Tow truck owners and operators should take several steps to align their business with upcoming 2026 towing fee laws:
Review and Publish Rate Sheets
Ensure that your current fee schedules are clearly written, easily accessible and comply with any state fee caps or transparency requirements.
Implement Itemized Billing Procedures
Adopt standard invoicing that lists individual charges so customers, insurers, and regulators can see exactly what is being billed.
Train Staff on Legal Compliance
Dispatchers, drivers and billing staff should understand new fee limits, required disclosures and reporting obligations that may now apply.
Stay Informed on Local Regulations
Some cities and counties impose their own towing fee rules. Operators should monitor ordinance updates in areas where they work to avoid noncompliance.
Frequently Asked Questions (FAQ)
Are towing fees regulated at the federal level?
Generally, towing fees are regulated at the state or local level, not by federal law. However, federal agencies like the U.S. Department of Transportation have expressed support for efforts to limit predatory or hidden fees.
Do all states have towing fee caps?
No, not all states limit fees, but several — including California, Utah and others — are updating laws that tighten restrictions or require maximum allowable charges.
Will new towing fee laws affect storage charges?
Yes. Many new rules include limits on storage fees and how they can be charged, such as rules against excessive charges on holidays or after short storage periods.
How can I verify I’m compliant?
Operators should review their state DMV regulations, local ordinances, and any new fee cap rules set by legislative action before adjusting pricing and billing practices.
Navigate 2026 With Clear and Compliant Fee Practices
New towing fee laws in 2026 reflect growing attention from lawmakers and regulators to create fairness, transparency and consumer protection in towing and storage billing. For operators, adapting to these laws is not just a legal obligation, it is a way to build trust with customers, reduce disputes, and position your business as professional and compliant.
Staying current with fee changes, adopting transparent billing practices, and training staff on legal obligations will help your towing business succeed under these evolving regulatory standards.