What Determines the Cost of a Tow?
Several factors can influence how much a legitimate company can legally charge for a tow. A standard 10-mile tow can go from $50 to $125, but fees can go up if there are special circumstances. For example, the heavier the vehicle, the more a company can charge — this is in part because the amount of fuel burned by a truck increases as it hauls larger loads.
Likewise, the farther the vehicle is towed, the more the costs can grow. Towing costs are typically charged by the mile. This means that if you have a flat tire and are located right outside of a highway rest area, you shouldn’t have to pay much to get towed a few miles to the next tire repair shop. If, however, you are in a remote area further away from regular services, you could be charged for the extra distance.
We always recommend going to court to make sure that your towing and storage fees are within a fair and reasonable range based on these guidelines. In a recent case in North Carolina , we assisted a client who had been charged $1,675 for her vehicle being towed a few miles. Most of that charge was for "storage" and "administrative" legal entry fees. We were able to achieve a settlement at court for several hundred dollars, based on that customer’s complaining directly to the state transportation department because of her unreasonable number of charges and the fact that the company’s one-page written contract was not valid because it violated the state laws that required multiple pages of documents to be handed out.
These factors are designed to help make sure that towing companies are not ripping off people who have an urgent need for them. While most towing companies are still honest and can be useful, knowing the law about how they must charge is a necessary first step to protecting yourself.
Laws to Protect Against Excessive Towing Fees
State and local regulations can also influence the amount that a towing company charges. Several states, for example, enact statutes that limit the charges that tow companies may place on service requests, like North Carolina’s, which prevent tow companies in the state from charging more than $125 for services called for by a business or homeowner, who are often the clients’ largest customers.
Other states tie the allowable per-event costs for towing to the length of the vehicle, as in Michigan, (where 15 empty vehicle weights are listed in the statute, with a one ton truck costing $150 for the basic charge), or the time of day, like Virginia, (which regulates the rates for "hourly" labor on vehicles to between $85 and $175, depending on the time of day). A handful of states restrict the number of hours that can be charged by requiring the disclosure of "dispatch-to-tow" times of less than two hours, (e.g., Washington), or limiting the "waiting time charges" that may be collected for a customer waiting for service to less than one hour (e.g., Iowa).
Other state regulations impose "per mile" charge caps on overweight, overlength or damaged transport vehicles (see, e.g., North Carolina, Massachusetts, New York), thus linking the possible charges to the weight to be towed. Keeping track of these and other variances across the various jurisdictions can be a laborious task for a company that operates in multiple states, all of which may have different regulatory regimes, especially at the county and municipality levels. National guidelines are sparse.
The Nuances of Tow Contracts and Agreements
Consumers should remember that, while there are general regulations regarding the towing of vehicles from private property, many of the nuances of how much a particular towing company can charge you are governed by the contract between you and the towing company. Most of these contracts will either be with the towing company or an agent of the property owner (i.e. the manager of the parking lot). There are often Generally, these "service agreements" contain clauses about notification, storage, labor rates, fees for picking up the vehicle outside of regular hours, etc. The property owner (or manager) will keep a copy of this service agreement on file and, upon requesting your vehicle back from the towing company, will likely be asked to produce a copy of this agreement.
Most consumers would never take on a new cell phone without reading the contract first, and they shouldn’t take on a new tow without doing the same thing. Pay special attention to the rates they may charge you. If the hourly rate listed in the agreement is higher than what the law permits, you can bring this to the attention of the manager of the lot. In some instances, the towing company will be portioning out the difference from what they are permitted by the law and what they are charging you to the manager of the lot. Most managers will not appreciably charge more than the law allows, so this issue is often only limited to companies like Premium, Plateau, and others.
Make sure, at all times, you have a copy of this agreement in your possession. Take a photograph of it and keep it on your phone – if the time comes that you need to retrieve your vehicle, quickly review your phone and, if necessary, point out to the manager of the lot that they are now holding your vehicle in violation of the law and their service agreement.
The Maximum Towable Charges
In certain circumstances, there are legal caps (maximums) on the amount of towing fees companies may charge. For example, Puerto Rico has a cap of $350 on towing charges for trips of 20 miles or less, $400 for trips over 20 miles, $75 for the first hour of service for on-scene service, plus $150 for each hour thereafter, and $30 for each completed mileage mile. At the same time, there is a maximum that must be charged for a light-duty tow. A medium or heavy-duty vehicle is charged $50 plus 6 percent of the fair market value of the vehicle for every $100 the vehicle is worth. The maximum per mile rate that may be charged is an extra $6.
In New York City, caps on towing fees have been in place since 1995. Current New York City towing rates include a base fee of $180 for light-duty vehicles, $220 for medium-duty vehicles, and $270 for heavy-duty vehicles. The fee increases by $60 for every five miles. The fee may not go above $410 for light-duty vehicles and $440 for medium-heavy vehicles and $490 for heavy-duty vehicles.
Challenging High or Unfair Towing Charges
For car buyers who drive on the highways of Houston, the thought of having to use the services of a towing company is never a pleasant thought. But with so many drivers here in the city and surrounding areas, knowing how to navigate through the dangerous roadways in and out of town is a skill needed by any professional Towing Company. However when you do, you’ll be asked to pay for the services rendered. The question is "How much?" Most consumers know that there are limits to what a towing company can charge, but what happens when you simply don’t think it was the rate specified? The following information is designed to help you better understand how to correctly dispute those charges with the company that serviced your vehicle, and how to resolve any additional issues thereafter. If you strongly believe the charge for towing your vehicle is unreasonable, the first step is to speak directly with the manager of the company to whom your vehicle was released. Be prepared to provide detailed information about the service that was provided to you. It is also recommended that you write down all of the charges that were listed on the receipt provided to you at the time of payment , including when and where the incident occurred, the services rendered by the company and any additional charges for add-on services. Your goal is to present a factual account of what took place in a calm and collective manner in order to achieve an amicable solution regarding the dispute. But most importantly, you should be aware of what is legally permissible to charge for, and what is not, prior to pursuing this type of course of action. Remember, you are not alone. There are several avenues in which you can dispute these charges and seek guidance. Houston requires all tow truck companies to license their businesses and submit to strict local laws and ordinances that regulate their operations and pricing. If you believe the charges made by a towing company violate any provisions of the municipal regulations or fail to adhere to the limits for fees and charges associated with towing services, you are entitled to take action against the company to recover compensation for these charges, and perhaps more.
How to Avoid Excessive Charges When You Get Towed
It is always best to avoid being towed in the first place. Here are a few tips that can help keep your car right where you left it:
First, always read available signage. Law enforcement officials and towing companies have to follow the law, and where signs are posted they will generally tell you what you can and cannot do. So look it over and make sure you’re not parked where you shouldn’t be.
Second, always remember where you park. In an age of miniature computers that fit in your pocket, it is hard to forget, but do so at your own peril. If you drive into a large parking lot and park, it is easy to lose track of where the car is located. Again, with good signage and a little forethought, you can always find your vehicle.
Third, simply notify the towing company that their vehicle has been towed. Although not foolproof, always look at the phone book section of your local city or area in order to determine who to call. If you call that number, they should be able to help you locate your vehicle before you go through the hassle of looking for it on your campus or in your neighborhood.
Beyond those three tips, it is critically important to carry roadside assistance service. It is easy to forget to get that policy before your vehicle gets towed away, but no one is going to be impacted by a cheap monthly membership fee but you. Instead, most people scramble to find money for the tow bills, and often end up regretting it later when they could have avoided these problems if they had assistance coverage.
Does Insurance Impact Towing Fees?
Depending on what type of vehicle coverage you have, either right after you call for the car to be towed or shortly after the vehicle is towed, your insurance company should be calling you to determine whether you want them to pay the towing company for towing expenses. It is best to make sure you do that right away so you do not get additional charges added by the towing company (including those they are attempting to charge for storage and any other fees they believe they are entitled to) as well as so you can have the car back repaired faster.
Of course if the towing expenses are not covered by your insurance company, you do not want to risk a possible lien on your car by signing any releases the towing company might have you sign.
As an example, if you have comprehensive coverage and you have collision coverage, that will cover any accident that you might be in. If you did not have comprehensive and were not at fault for the car accident, then collision coverage will apply to you if you are the one who needs to pay to have your car towed. Conversely, comprehensive coverage only covers damage that is not the result of a car accident but other circumstances.
There are, however, some exceptions to the general rule regarding when insurance covers towing expenses. For instance, some people, including those who do not have insurance, go on the road and are supposed to use their own money to pay for the towing of their vehicle so the towing company is not out any money . In these instances, some insurance companies may try to wiggle out of paying for the towing expenses. However, most reputable insurance companies have provisions in their policies that cover the costs associated with having a vehicle towed, even if it was not the fault of the car owner.
It is important for anyone to read the fine print on the coverage they buy when they purchase an auto insurance policy. Most auto insurance policies will have coverage for not only physical damage but also damage that may happen to the insured policyholder elsewhere, including while driving and at home. Insurance companies want to make sure their policyholders know when they can use their insurance for such expenses and when their insurance will not cover the cost of such expenses.
Sometimes the person who called the tow truck does not need the tow truck but the actual person who owns the car may. If the third party’s insurance is paying for the towing expenses, the parking surety bond they posted has to be active. Therefore, whoever is responsible for towing the vehicle has to contact the insurance company about the bond to figure out if it will cover the towing expenses and the bond can be put to use by the third party to cover the amount of the tow bill(s) in those circumstances.