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Towing Service Regulations

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Towing Service Requirements

If you are experiencing car trouble it is common to obtain the assistance of a towing company. Towing companies also offer services to law enforcement agencies by towing vehicles that are violating a parking rule. A towing company can also provide contractual services to larger companies. Companies that provide services for individuals have a more expensive fee to obtain their license.

There are certain requirements for each state in order to establish a towing service. Once a towing company becomes licensed they are allowed to provide 24-hour services. Most states will require that the business owner file paperwork to the clerk of court’s office; they will also be required to pay a fee. A towing license fee can be as much as $200,000. In order to provide a public service, such as towing, the business has to adhere to strict requirements and regulations. Most tow companies subcontract their services to businesses because the license fees are cheaper.


The owner of the business will be required to obtain insurance to cover any damages that may occur with the equipment or the drivers. In the event of an accident, proof of insurance must be available at all times.


The business owner must perform background checks and drug tests on all employees. The driving record of employees must be submitted as proof of no major driving offenses, such as DUI or DWI (Driving Under the Influence and Driving While Intoxicated). A criminal conviction will most likely result in a denial of a company license.


Each state has guidelines for how much weight a tow truck can carry. For instance, California can carry at least one ton. The trucks must display the company name and other contact information, such as the address and telephone number. Emergency equipment such as red flares and warning signs should be available when towing a vehicle. All employees are permitted to maintain communication through two-way radio contact.