California’s New Towing Bill: A Sign of Things to Come for Driver Protections?
A surprising $300 towing bill can quickly ruin your day, and for many Californians, those unexpected costs have become a frustrating reality. But a new law, Assembly Bill 987, passed in September 2025, is poised to change that, signaling a potential nationwide shift towards greater transparency and fairness in the often-opaque world of towing and storage fees. This isn’t just about saving a few dollars today; it’s about establishing a precedent for consumer protection in an industry ripe for reform.
Unpacking Assembly Bill 987: What Drivers Need to Know
At its core, Assembly Bill 987 aims to curb what California lawmakers deemed “unreasonable” fees tacked onto towing bills. The legislation specifically targets charges beyond the standard rate during non-business hours – think holidays when storage facilities are closed – and in emergency towing situations directed by law enforcement. But the bill goes much further, scrutinizing a long list of common add-on fees that have historically padded towing companies’ profits.
The Fees Under Fire: A Detailed Breakdown
The list of fees now considered unreasonable under the new law is extensive. Towing fees beyond 10% of the regular rate for after-hours calls are now capped. “Load and unload” fees, “pull-out” fees, “dolly” fees, and even seemingly innocuous “security” and “gate” fees (except when release occurs outside of regular hours) are all under scrutiny. Hourly storage fees are also limited to 50% of the daily rate for the first four hours of storage. Perhaps most importantly, companies can no longer continue to charge fees if payment is tendered at the time of vehicle release. These changes represent a significant win for consumers facing unexpected expenses.
However, it’s crucial to note that these protections don’t apply if a vehicle is held under a judicial order – for example, as part of an evidence hold or legal dispute.
Beyond California: A Ripple Effect Across the US?
California has often been a bellwether for consumer protection laws, and AB 987 is likely to inspire similar legislation in other states. The issue of predatory towing practices isn’t unique to California. Across the country, drivers are routinely hit with exorbitant fees, unclear billing practices, and limited recourse when disputes arise. The lack of standardization in towing regulations contributes to this problem.
Several factors are driving this potential nationwide trend. First, increased public awareness of these issues, fueled by social media and consumer advocacy groups, is putting pressure on lawmakers to act. Second, the rise of ride-sharing services and alternative transportation options has made vehicle ownership less essential for some, increasing the perceived vulnerability of those who do rely on their cars. Finally, the growing cost of living is making even relatively small unexpected expenses – like a $200 towing bill – a significant financial burden for many families.
The Rise of Towing Oversight and Technology
Beyond legislative action, we’re also seeing a growing trend towards greater oversight and transparency in the towing industry. Some cities are implementing stricter permitting requirements for towing companies, requiring them to clearly display their rates and accept multiple forms of payment.
Technology is also playing a role. Mobile apps and online platforms are emerging that allow drivers to compare towing prices, request services, and pay electronically, reducing the potential for price gouging and disputes. Furthermore, the use of GPS tracking and digital documentation is making it easier to verify the legitimacy of towing services and track the location of impounded vehicles.
Future Implications: What to Expect in the Next 5 Years
Looking ahead, several key developments are likely to shape the future of the towing industry. We can anticipate:
- Increased Standardization: More states will likely adopt regulations similar to California’s AB 987, leading to greater consistency in towing practices across the country.
- Greater Price Transparency: Towing companies will be forced to be more upfront about their fees, potentially through mandatory online price disclosures or standardized billing practices.
- Enhanced Consumer Protections: States may introduce measures to protect drivers from unfair or deceptive towing practices, such as requiring towing companies to provide itemized receipts and offering a dispute resolution process.
- Technological Disruption: The continued development of mobile apps and online platforms will empower consumers and increase competition in the towing market.
Assembly Bill 987 isn’t just a California story; it’s a potential turning point in the fight for fairer towing practices nationwide. As drivers become more aware of their rights and demand greater transparency, the towing industry will be forced to adapt. What are your predictions for the future of towing regulations? Share your thoughts in the comments below!
