Drivers are finally catching a break—new law slashes unfair towing fees starting July 1

If you've ever opened a towing bill and felt your jaw hit the floor, you're not alone.

One trucker in Indiana was recently slapped with a $7,000 fuel fee—for an 18-mile tow. But that outrageous practice is about to meet its match.

A powerful new state law aims to stop the madness—and protect your wallet.



Starting July 1, Indiana’s House Enrolled Act 1390 officially goes into effect.

This law cracks down on what lawmakers are calling predatory towing practices—a widespread issue that’s cost drivers thousands in hidden fees, inflated charges, and delays in getting their vehicles back.

Now, towing companies across the state will be forced to play fair—or face consequences.


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This law cracks down on what lawmakers are calling predatory towing practices. Image source: Jonathan Cooper / Unsplash


According to the American Transportation Research Institute, Indiana had the most commercial towing complaints per mile driven from 2021 to 2023.

Truckers and everyday drivers alike were sounding the alarm.

State Representative Jim Pressel, who introduced the bill, put it bluntly: "Indiana is the number one predatory towing state in the nation."

He cited example after example of unfair bills—$7,000 fuel surcharges, excessive labor charges, and vague “administrative fees”—all for basic roadside tows.


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Whether your car was towed from a private lot or by local police, this law introduces major reforms that benefit drivers, including:
  • Caps on towing rates: Companies must use filed or standard rates only.
  • Ban on hidden fees: No more vague "inspection" or "administrative" charges.
  • Faster vehicle release: If you pay 75% of the bill and file a complaint, they must release your vehicle within 24 hours.
  • Required itemized invoices: Including detailed services, mileage, and equipment time.
  • No kickbacks: Referrals must come from real agreements—not behind-the-scenes deals.
And perhaps most important of all: Towers must certify that all charges are necessary and accurate. That’s accountability in writing.



The road to passing this law wasn’t easy.

Earlier attempts at reform died in committee or were shelved. Eventually, Pressel tucked the language into a completely unrelated bill—about utility trailers.

That move helped the law cross the finish line before the legislative session ended.

Not everyone was thrilled.

“It actually kind of contradicts itself,” said Rep. Bob Morris, one of the few lawmakers to oppose the final draft.

Even some in the towing industry called for a “pause,” saying more work is needed.

But for now, the law stands—and drivers across Indiana will soon feel the relief.

Read next: The $64 mistake hiding in plain sight—this new law could cost you
Key Takeaways
  • Starting July 1, Indiana’s new towing law limits predatory fees, bans hidden charges, and enforces fair billing practices.
  • Towing companies must release vehicles within 24 hours if 75% of the bill is paid and a complaint is filed.
  • The law was passed after drivers—especially truckers—reported extreme towing costs, with one 18-mile tow costing over $7,000.
  • Lawmakers hope the law restores fairness and transparency for both personal drivers and commercial carriers.
Have you ever been hit with a sky-high towing fee? How much did you pay—and did you fight it? Do you think towing companies should face stricter rules? Share your story in the comments below. Someone in our GrayVine community might be going through the same thing.
 

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