Indiana towing law sets payment, storage, and vehicle recovery rules

Towing services and storage yards must accept listed payment methods and provide itemized receipts; commercial towing customers may inspect vehicles before release. Commercial towing customers who own or hold a lien on a vehicle, and insurance company representatives responsible for its release, may inspect it during normal business hours before accepting the release. Credit and debit cards appear among the listed payment methods, but the text says a towing service or storage yard may elect to accept them. A credit card service fee may not exceed 3%. Receipts include required details to the extent they are known or available. A towing service or storage yard may not charge an inspection fee to inspect a vehicle or retrieve items under the abandoned-vehicle release rules. These provisions take effect July 1, 2026.

Commercial property towing companies must follow sign and vehicle-care rules; emergency towing companies responding to a summons may use the roadway shoulder to reach a disabled vehicle. The sign and vehicle-care rules cover commercial private property towing. The shoulder provision applies to a towing company responding to an emergency tow summons. Signs must be conspicuous, clearly visible, and more than 5 feet but less than 7 feet above the ground; a towing company may not tow from a zone if its sign misses the required height. A property owner may tow without first displaying a sign when the vehicle is removed under IC 9-22-1-16, and a local unit may set different sign rules by ordinance. Towing companies must secure vehicles and make reasonable efforts to prevent damage or theft. Reimbursement for damage caused by the company does not apply to a tow under IC 9-22-1. These provisions take effect July 1, 2026.

Collateral recovery agencies must store repossessed property in Indiana until it is redeemed or transferred to auction, and include 10 days of storage in their standard rate. These rules apply to collateral recovery agencies that repossess personal property used as collateral. Collateral does not include a recreational vehicle permanently attached to a foundation and used as a primary residence. After the first 10 days, the legal owner or lienholder must pay $15 per day; an agency may charge an additional fee for collateral containing hazardous materials. The rules exclude specified financial institutions, rental companies, equipment sellers, and equipment finance entities when they act within the stated limits. These provisions take effect July 1, 2026.

A self-service storage owner may tow or remove a renter's vehicle, trailer, or watercraft instead of holding a sale to enforce a lien. This applies when a renter's personal property in a self-service storage space is a motor vehicle, trailer, or watercraft. The owner may use this option if the renter does not pay the claim by the notice deadline or has been in default for at least 60 days. The owner must send written notice by email or verified mail to the renter's last known address and allow at least 30 days after mailing for payment. The notice must explain the possible disposal method. Any sale or other disposal must follow the place and time stated in the notice. These provisions take effect July 1, 2026.