Operating a towing company in California comes with a set of regulations that dictate how much you can charge for your services. These rules are designed to protect consumers while making sure tow truck drivers and companies receive fair compensation for their work.
In this blog, we’ll break down how much a towing company can legally charge, the factors that influence towing rates, and what you need to know to stay compliant with state laws.
Understanding Towing Fees in California
California law limits how much a towing company can charge customers, especially for non-consensual tows—those that are requested by law enforcement or a property owner. The state’s Civil Code outlines specific guidelines to make sure that towing companies operate within the legal framework and that customers aren’t overcharged.
How Much Can a Towing Company Legally Charge?
The answer to “how much a towing company can legally charge” in California varies depending on several factors, including the type of tow and the circumstances under which it occurs. Non-consensual tows, such as when a vehicle is removed from private property or towed after a traffic violation, are subject to stricter price limits. According to the California Vehicle Code, towing companies can charge for several components:
- Towing Fee: The base fee for towing a vehicle, which generally ranges from $100 to $250, depending on the distance and type of vehicle.
- Storage Fees: If the vehicle is stored at a lot, companies can charge daily storage fees, which range from $40 to $100 per day.
- Additional Fees: If specialized equipment is needed, such as a dolly or flatbed, extra fees can be charged. However, these charges must be reasonable and clearly listed.
Local municipalities regulate towing rates in California so that the exact rates may vary from one city or county to another. Always check with your local government to make sure your fees align with regulations.
Breakdown of Towing Rates in California
When discussing towing rates in California, it’s important to note that rates must be clearly posted at the towing facility and provided to the vehicle owner before payment is required. This transparency helps avoid disputes and ensures drivers are aware of what they are being charged.
For consensual tows—when a driver voluntarily calls a tow truck for assistance—towing companies have more flexibility in setting their rates. However, the rates must still be competitive and reflect industry standards to avoid overcharging customers.
Important Regulations for Towing Companies
As a tow truck driver or business owner, adhering to state regulations is crucial. Here are a few key points to remember:
- Maximum Fees for Non-Consensual Tows: For non-consensual tows, towing fees in California are capped at the maximum allowable rate set by local jurisdictions. Overcharging can result in fines or the loss of your towing license.
- Receipts and Invoices: You must provide an itemized receipt for all charges, including towing fees, storage costs, and any additional services. This ensures transparency and protects your business from potential legal disputes.
- Storage Fees and Notifications: After 72 hours, towing companies must notify vehicle owners of their vehicle’s location. Failing to do so can lead to penalties, and the storage fees incurred during this period may not be collectible.
Avoiding Legal Issues
Staying informed about current regulations will help you avoid fines or legal trouble. It’s essential to regularly review the California Vehicle Code and stay updated on changes to towing laws in your area. Proper documentation and transparency with customers can also help prevent misunderstandings and keep your towing company operating smoothly.
Conclusion
Towing companies in California must operate within a strict regulatory framework, particularly for non-consensual tows. Understanding how much a towing company can legally charge, including towing fees in California and the specific towing rates in your local area, is essential for staying compliant with state laws. By following these guidelines and maintaining transparency with customers, you can make sure your business runs efficiently and legally.
