How to Dispute Towing Fees: 2026 California Caps and Step-by-Step Guide

Towing fees in California count as unreasonable if they go beyond certain 2026 limits, like after-hours premiums over 10% of the normal towing rate or storage charges exceeding 50% of the daily rate for vehicles recovered in the first four hours. These caps take effect January 1, 2026, under Vehicle Code sections 10652.5(d) and 22524.5(c)(3). They help consumers spot overcharges from repair shops or towing services.

To dispute them, begin by reaching out to the towing company or repair shop for an itemized breakdown and a refund. If that doesn't work, submit a DMV complaint on form VS-35, backed by evidence such as photos of missing signage or police records. For faster results, consider a bank chargeback or a demand letter. Drivers dealing with tows from repair shops or stored vehicles can follow these steps, while towing operators should post required notices and stick to fee limits.

2026 California Limits on Towing and Storage Fees

Starting January 1, 2026, California law sets towing and storage fees as presumptively unreasonable for automotive repair dealers. After-hours towing fees over 10% of the normal towing rate qualify, as do storage fees above 50% of the daily storage rate for vehicles recovered within the first four hours.

The limits come from Vehicle Code sections 10652.5(d) and 22524.5(c)(3), which protect consumers from excessive charges tied to repairs or storage. Gate fees can still be charged reasonably, but premiums or early storage beyond these thresholds offer solid grounds for disputes. Catching overcharges early bolsters your position against the towing company. For full details on these regulations, refer to the Bureau of Automotive Repair.

Consumers can check their bills against these metrics: after-hours premiums above 10% of the standard towing rate, or storage over 50% of the daily rate in the first four hours, make the fee presumptively unreasonable. Towing operators and repair dealers must follow these caps to sidestep disputes and refunds.

Required Posting and Disclosure Rules for Towing Fees

Automotive repair dealers that offer towing services must display their Towing and Storage Fees and Access Notice in plain view. They also need to provide copies to the public on request, as required by Vehicle Code section 22651.07(a)(1)(A).

If postings are missing or inadequate, that violation gives consumers strong leverage in disputes. Before paying or challenging fees, look for visible signage at the facility. Photos of non-compliant postings make powerful evidence for DMV complaints or demand letters. Towing operators stay compliant by keeping notices prominent and current, which helps avoid penalties and refund demands. For more on compliance, see the Bureau of Automotive Repair.

This rule applies to automotive repair dealers providing towing services, promoting transparency for customers facing potential surprise charges.

Step-by-Step Process to Dispute a Towing Fee

Follow this timeline to challenge a towing fee systematically:

  1. Gather evidence immediately: Collect the towing receipt, police report if applicable, photos of the vehicle location and signage, and any parking rules from the property.

  2. Contact the towing company or repair shop within 24-48 hours: Request an itemized bill and explanation. Ask for a refund citing 2026 fee caps or posting violations.

  3. Inspect records: Review police impound logs or property manager policies for errors like wrongful tows under Vehicle Code sections 22651 or 22658.

  4. Send a demand letter: Outline violations, reference specific Vehicle Code sections, and demand a refund within 7-10 days.

  5. File a DMV complaint: Use form VS-35 with documents for a hearing, especially for excessive or wrongful tows within 10 days. Note the 90-day or 3,000-mile limit for repair-related issues.

  6. Pursue chargeback or small claims: Dispute via your bank for credit card payments, or file in small claims court for larger amounts.

This process moves from direct negotiation to formal resolution, with documented evidence boosting your chances of success. For DMV complaints on automotive business issues like repair shop tows, submit form VS-35 with supporting documents such as receipts and photos.

Should You File a DMV Complaint or Pursue a Chargeback First?

Your choice depends on the situation. DMV complaints fit repair shop towing issues, signage violations, or fee disputes under Vehicle Code rules. They lead to hearings that can secure refunds on excessive charges. Submit form VS-35 with police records or photos within the relevant timelines.

Chargebacks offer quicker results for credit card payments--contact your bank right away with the evidence. Demand letters can pressure companies into informal refunds without formal steps.

Prioritize the DMV if 2026 caps or postings are key, since it tackles towing-specific violations. Go for chargebacks to recover disputed amounts fast, then escalate to the DMV if needed. Keep timelines in mind: chargebacks often wrap up in weeks, while DMV hearings take longer but carry regulatory weight.

FAQ

What fees are presumptively unreasonable under 2026 California law?

After-hours towing premiums exceeding 10% of the normal towing rate and storage fees over 50% of the daily rate for the first four hours, effective January 1, 2026, per Vehicle Code sections 10652.5(d) and 22524.5(c)(3).

How do I file a towing dispute with the California DMV?

Complete form VS-35 with supporting documents like receipts, photos, and police records. Submit within relevant timelines to request a hearing.

What should I check for signage violations in a towing fee dispute?

Verify if the repair dealer posted Towing and Storage Fees and Access Notice in plain view, with copies available, as required by Vehicle Code section 22651.07(a)(1)(A). Photograph any deficiencies.

Can I get a refund for excessive after-hours towing premiums?

Yes, premiums over 10% of the normal rate are presumptively unreasonable under 2026 rules. Dispute via company contact, DMV complaint, or demand letter citing the violation.

What's the time limit for challenging a towing fee in California?

10 days for DMV hearings on wrongful or excessive tows; 90 days or 3,000 miles for repair-related complaints. Act quickly on chargebacks per bank policies.

Do automotive repair shops have to post towing fees publicly?

Yes, they must post Towing and Storage Fees and Access Notice in plain view and provide copies to the public, per Vehicle Code section 22651.07(a)(1)(A).

Next, photograph any signage issues and contact the towing company with your evidence today. If needed, prepare form VS-35 for DMV submission to enforce your rights under 2026 regulations.