Towing Laws in Indiana (2026): Your Rights Before They Hook Your Car

Most people have no idea what their rights are when a tow truck shows up. Seriously. You might be losing money right now without even knowing it.

Indiana updated its towing laws in 2025. The changes are big. Let’s break down exactly what you need to know before your car ends up on a hook.

What Is Towing Law?

Towing law covers the rules that towing companies, property owners, and law enforcement must follow. These rules decide when your car can be towed. They also control how much you can be charged.

Pretty much every type of tow is covered. That includes private property tows, law enforcement tows, and emergency tows. Indiana’s laws apply to all of them.

Indiana’s Towing Problem (And the 2025 Fix)

Okay, this one’s important. Indiana was actually ranked the number one state in the nation for predatory towing. That’s not a stat anyone wants.

A 2023 report by the American Transportation Research Institute found that Indiana had more reported predatory towing incidents than any other state. Truckers described thousands of dollars in hidden fees for short tows just a few miles down the road. One invoice included a fuel surcharge of more than $7,000 for an 18-mile tow.

Indiana responded with House Bill 1390. Governor Mike Braun signed it into law in May 2025. The new rules took effect on July 1, 2025. These changes are the most significant update to Indiana towing law in years.

Basic Indiana Towing Laws

When Can Your Car Be Towed?

Wondering if a tow was even legal? Here’s the breakdown.

Your car can be towed by law enforcement when it is part of a crime scene. It can also be towed if it is a recovered stolen vehicle. Officers can also have it towed when it poses a safety hazard to the public.

Private property owners can tow your vehicle too. But they must follow rules. If your car sits on private property for more than 24 hours, the owner can have it removed. In emergencies, like if your car is blocking normal business operations, it can be towed immediately.

Tow-Away Zones on Private Property

You’re not alone if you’ve ever been surprised by a tow from a parking lot. Most people don’t realize how strict these rules are.

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Property owners who set up tow-away zones must post clear signs. The signs must be visible to the public. They must include the name and contact information of the towing company and the fee schedule. If proper signs are not posted, the tow may not be legal.

Towing companies must also have a written agreement with the property owner before they can tow from that location. That agreement must be available for inspection.

New 2025 Rules You Need to Know

Towing Rotations and Law Enforcement Tows

Hold on, this part is important. When your car is towed after an accident, police usually choose which tow company responds. You don’t get to pick. That used to leave a lot of room for abuse.

Under the new 2025 law, local law enforcement agencies must now create a written towing rotation policy. These policies must outline rates for all services, storage fees, and response time requirements. The goal is to prevent favoritism and keep fees fair.

The Indiana State Police already had a rotation system. Now local agencies are required to have one too. Rates must be reviewed regularly to make sure they stay reasonable.

Invoice Requirements

Think of this like a receipt rule, but with teeth.

Every tow must come with an itemized invoice. This has always been required in Indiana. But the 2025 law added new details that must now be included.

Invoices must now list the number of miles the vehicle was towed. They must include a good faith estimate of how each fee was used. Every fee must have a full description of the service it covers. Towing companies must also include a statement that all charges were actually used and necessary.

Hidden fees and vague line items are now harder to hide. That’s a good thing.

No More Inspection Fees

This one surprised a lot of people. Under the new law, towing companies and storage facilities cannot charge you a fee just to inspect your vehicle. They also cannot charge you to retrieve personal belongings from inside your car. That applies to the vehicle owner, lienholders, and insurance company representatives.

Penalties and Consequences for Illegal Towing

So what happens if a tow company breaks the rules? Let’s talk about the penalties.

Towing companies that fail to follow Indiana law can face serious consequences. They can be held liable for damages. Their licenses can be suspended or revoked. Complaints can be escalated to the Indiana Attorney General.

Think of it like a contractor’s license getting pulled. It’s not criminal, but it can shut a business down.

For commercial carriers, the 2025 law added something new. If you believe your towing charges are unreasonable, you can now file a formal complaint with the Indiana Attorney General’s Office. Once a complaint is filed with the required payment of 75% of the invoice and a bond for the remaining 25%, the towing company must release your vehicle within 24 hours.

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Special Circumstances

Abandoned Vehicles

If your car looks abandoned, it can be towed without your consent. Signs of abandonment include expired registration, missing license plates, or obvious signs the car hasn’t moved in a long time.

Honestly, this is one area where you can avoid trouble with basic maintenance. Keep your registration current. Make sure your plates are visible and valid.

Commercial Vehicles

Commercial truck operators got some of the biggest protections under the 2025 law. That makes sense given how bad the problem was. Because law enforcement chooses the tow company at accident scenes, truckers had no way to avoid bad actors.

Now, fees charged beyond what is outlined in a law enforcement contract are prohibited. Contracts also cannot include a minimum number of hours that must be invoiced. That closes a common trick used to inflate bills.

How to Protect Yourself From a Wrongful Tow

You can take steps before and after a tow to protect yourself. Here’s what to do.

Before parking anywhere unfamiliar, read every sign in the area. Look for tow-away zone notices, hours of restriction, and any contact information for the towing company. If you’re unsure, don’t park there.

If your car has already been towed, call the local police non-emergency line first. They can tell you which tow company has your vehicle. Then call the tow company and ask for an itemized invoice before you pay anything.

Don’t skip the invoice step. Under Indiana law, you’re entitled to a detailed receipt.

If the fees seem unreasonable or the invoice is missing required information, don’t panic. You can contact the Indiana Attorney General’s Consumer Protection Division. They handle complaints about towing companies.

What If You Catch the Tow in Progress?

Here’s where it gets interesting. Indiana law actually protects you in this moment.

If you arrive at your car while it is still being hooked up and hasn’t been fully removed from the lot, the towing company must give you the option to pay a reduced fee and take your car back. That fee cannot be more than half of the normal towing charge. This is sometimes called a “drop fee” or a release before tow.

Don’t miss this window. Once the car is fully removed, you owe the full amount.

How to File a Complaint in Indiana

If you think you’ve been wrongfully towed or overcharged, here’s what to do step by step.

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First, document everything. Take photos of the area, the signs, and the invoice. Write down dates and times.

Second, contact the towing company directly. Sometimes mistakes happen. Ask them to explain each charge.

Third, if you’re not satisfied, file a complaint with the Indiana Attorney General’s Consumer Protection Division. You can reach them online at in.gov or by calling 1-800-382-5516. Commercial carriers can also file directly with the Attorney General under the 2025 law if fees seem unreasonable.

Don’t wait too long. Acting quickly gives you more options.

Frequently Asked Questions

Can a tow company charge me just to look at my car? No. As of July 1, 2025, Indiana law prohibits towing companies and storage facilities from charging inspection fees to vehicle owners, lienholders, or insurance representatives.

What happens if there were no signs in the lot where I was towed? Indiana law requires that private property tow-away zones have clearly visible signs. If proper signs were not posted, the tow may have been unlawful. Document the scene and contact the Attorney General’s office.

Can I get my belongings out of my towed car for free? Yes. The 2025 law makes it illegal for a towing company or storage facility to charge you a retrieval fee for personal items inside a towed vehicle.

What if I can’t afford to pay the full invoice to get my car back? Under the 2025 rules, commercial carriers can file a complaint and pay 75% of the invoice plus a bond for the remaining 25%. The company must then release the vehicle within 24 hours. Rules for personal vehicles may differ, so contact the Attorney General’s office for guidance.

Can I dispute a tow charge? Yes. Contact the Indiana Attorney General’s Consumer Protection Division at in.gov or 1-800-382-5516. Keep all documentation, invoices, and photos to support your complaint.

Final Thoughts

Now you know the basics. Indiana has had serious problems with predatory towing. The 2025 laws are a real step forward. But the rules only help you if you know them.

Read the signs before you park. Ask for an itemized invoice every time. And if something feels wrong, contact the Attorney General’s office. Stay informed, stay protected, and when in doubt, look it up or ask a lawyer.