Property Damage

Your Car Was Towed Improperly: Suing a Towing Company

Towing disputes show up in small claims court constantly, partly because towing is one of the most regulated local services in the country. That regulation works in your favor: when a tow violates a posted rule or a rate cap, you have something concrete to point to.

The three common claims

  1. The tow itself was improper — no signage, signage that didn't meet legal requirements, towing from a spot you were entitled to use, or towing without the property owner's authorization where that's required.
  2. The fees were excessive — many cities and states cap tow and daily storage rates, and some require an itemized invoice.
  3. Your vehicle was damaged — bumper, transmission, undercarriage, or interior damage caused by improper hookup or storage.

What to gather

  • Photos of the location, including any signage — its size, wording, height, and visibility. Photograph from a driver's perspective.
  • The tow invoice, itemized. Note each line item and compare against your local rate schedule.
  • Your local rate cap or towing ordinance, printed. City or state consumer affairs sites usually publish these.
  • Before and after photos of the vehicle, if you have them. Dashcam footage and prior service records help establish pre-existing condition.
  • A repair estimate from an independent shop for any damage.

Who to sue

Name the towing company as the defendant. If the property owner or a property management company ordered the tow without authority, they may be a second defendant. Check the exact legal business name on your invoice or with your state's business registry — suing the wrong entity is the most common way these cases get dismissed.

Calculating your claim

  • The tow and storage fees, if the tow was improper
  • The overcharge amount, if the tow was valid but the fees exceeded the cap
  • Repair cost for any damage caused
  • Rental car or rideshare costs while your vehicle was held, if documented and reasonable

Some states allow double or treble damages for illegal tows. Check whether your state's towing statute includes a penalty provision — it can significantly change what you ask for.

Before filing

Send a short demand letter to the towing company citing the specific ordinance or rate cap you believe was violated. Companies that operate under a city permit are often quick to refund rather than draw regulatory attention, and many cities also have a complaint process that runs in parallel.


This article is for general informational purposes and isn't legal advice. Towing regulations vary substantially by city and state — check your local ordinance before filing.

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