California Forces Companies To Be More Reasonable With Vehicle Towing And Storage Fees

Towing services can be a huge help or a total inconvenience. They can move cars that are inoperable to a safe location, or take away cars that are parked improperly, though there is some confusion when it comes to towing cars parked in reserved spots. Regardless of the reason for their use, though, calling a tow truck can get expensive. Not only is the service itself typically a financial consideration, but in the case of vehicles that are towed and impounded, storage fees can be a lot to contend with should the vehicle be held for any period. Fortunately, the California government has taken action in this regard, seeking to make the associated costs of towing and storage a bit more reasonable.

In September 2025, the California State Assembly passed Assembly Bill 987, legislation intended to save drivers money on towing and storage costs. The idea is to expand the list of unreasonable fees that go beyond what's necessary in a towing and storage situation. The bill specifically calls on fees beyond the normal rate incurred on days that the storage facility isn't open, such as holidays.

It also applies to those towed or performing the tow in a scenario where a law enforcement officer has directed the removal of a vehicle from the site of a state or local emergency. These are the major instances California State Assembly Bill 987 tackles. However, there are multiple types of fees the bill targets as well, hoping to save Californians some money in more ways than one.

As mentioned, the heart of this California State Assembly bill is to prevent unreasonable fees in specific instances. Excessive holiday charges when a vehicle can't be retrieved and those stemming from emergencies are the main subjects, though they're not alone. Within the bill, there's a lengthy list of fee types that are now considered unreasonable under the law, including the load and unload fee, pull-out fee, dolly fee, security fee, and gate fee, except if the release takes place outside of regular hours. However, if gate fees are found reasonable, additional towing fees beyond 10% of the regular rate if the call was made after normal business hours are considered unreasonable.

Also unreasonable are hourly storage fees beyond 50% of the daily rate when the vehicle is recovered in the first four hours of storage. Administrative or filing fees are unreasonable more often than not, except those relating to documentation from the Department of Motor Vehicles directly or a lien sale of the vehicle. If all fees are paid at the time of one's release request, vehicle holders are also not allowed to keep charging fees for the days it fails to let the vehicle go.

Of course, none of this applies if the vehicle is being held under the authority of the judicial process. With Assembly Bill 987 passed, it seems California is determined to stay among the states with the best towing protections.