New Jersey Towing Laws and Requirements Explained
- Randy Dinwiddie
- 8 minutes ago
- 5 min read
Introduction to New Jersey Towing Regulations
For towing companies operating in the Garden State, understanding New Jersey's towing laws isn't just good business practice—it's essential for legal compliance. New Jersey has implemented some of the nation's most comprehensive towing regulations through the Predatory Towing Prevention Act (N.J.S.A. 56:13-7 et seq.) to protect consumers while allowing legitimate towing operations to function effectively.
Whether you're a tow truck operator, property owner, or vehicle owner, knowing these regulations helps ensure fair practices and prevents costly violations. At Dependable Brokers, we support towing professionals with proper insurance coverage and industry guidance to navigate these complex regulations.
Key Consent and Signage Requirements
New Jersey law places significant emphasis on proper notification before non-consensual towing occurs. The state's regulations are designed to prevent predatory towing while protecting property rights.
Private Property Towing Requirements
Towing a vehicle from private property without the owner's consent is only legal when these conditions are met:
Proper Signage Installation: Signs measuring at least 36" × 36" must be posted at all vehicle entrances.
Comprehensive Sign Content: Each sign must clearly display:
Purposes for which parking is authorized
Days/hours when parking is permitted or prohibited
Clear statement that unauthorized vehicles will be towed at the owner's expense
Name, address, and telephone number of the towing company
The location where towed vehicles can be retrieved
All applicable towing and storage fees
Valid Towing Contract: The property owner must maintain a current contract with the towing company authorizing removals.
Without meeting these requirements, a tow may be considered predatory and subject to penalties under state law.
Special Considerations for Residential Properties
Multi-unit residential complexes have additional requirements:
Assigned Parking: Clearly marked assigned parking spaces
Visitor Procedures: Defined protocols for guest parking
Resident Notification: Regular communication about towing policies
24-Hour Contact: Property management must provide a way for residents to verify whether a tow was authorized
Failing to follow these specific residential requirements can result in legal liability for both property managers and towing companies.
Fee Structure and Transparency
New Jersey law regulates what towers can charge and requires complete transparency in fee structures.
Regulated Fee Requirements
Written Fee Schedule: Before providing any towing service, companies must provide written documentation of all fees.
Receipt Provision: Detailed receipts must be given for all services rendered.
Fee Limitations: Charges must align with prevailing rates in the region.
Storage Fee Regulations
Storage facilities have specific billing rules:
For the first 24 hours, only one day of storage can be charged.
Between 24-48 hours, a maximum of two days can be charged.
After that, daily rates apply as posted.
Payment Method Requirements
Towing companies must:
Accept at least two major credit cards
Provide clear instructions for cash payments
Process transactions efficiently to enable vehicle release
Prohibited Towing Practices
New Jersey's regulations explicitly prohibit several practices considered predatory or unfair:
What's Considered Predatory?
Towing from private property without proper signage
Operating without a valid contract with the property owner
Imposing excessive or unauthorized fees
Refusing to release a vehicle when the owner offers to pay towing charges
Creating obstacles to prevent vehicle owners from retrieving personal belongings
Failing to maintain proper records of towed vehicles
Documentation Violations
Towing companies must maintain comprehensive records for each tow, including:
Date, time, and location of the tow
Vehicle description and license plate information
Reason for the tow
Location where the vehicle is stored
Name of the person authorizing the tow
Falsifying any of these records constitutes a serious violation subject to penalties.
Law Enforcement-Initiated Towing
When towing is requested by police agencies rather than private property owners, additional regulations apply.
Police-Authorized Towing
For tows requested by law enforcement:
Written Authorization: Police must document the specific reason for towing.
Regulated Rates: Fees must comply with state-established rates for police-requested tows.
Prompt Reporting: Towing companies must inform local police departments about vehicles in their possession.
Proper Storage: Vehicles must be secured in authorized impound facilities.
Accident Scene Procedures
Towing from accident scenes requires:
Proper safety equipment and procedures
Cleaning of debris from the roadway
Documentation of vehicle condition before towing
Special care for vehicles involved in serious crashes that may require evidence preservation
Consumer Rights and Protections
Vehicle owners have significant rights under New Jersey law, even when their vehicle has been legitimately towed.
Vehicle Owner Rights
If your vehicle has been towed in New Jersey, you have the right to:
Personal Property Access: Retrieve personal belongings from your vehicle at no additional cost
Fee Disclosure: Receive a complete written list of all charges before payment
Vehicle Release: Have your vehicle released promptly upon payment of properly documented fees
Complaint Filing: Submit formal complaints about violations to the Division of Consumer Affairs
Dispute Resolution Process
When disagreements arise:
Request all documentation related to the tow
Compare charges to the posted fee schedule
Verify that all signage and authorization requirements were met
File a complaint with the Division of Consumer Affairs if violations occurred
Consider small claims court for fee disputes under $3,000
Penalties for Non-Compliance
New Jersey takes towing violations seriously, imposing significant consequences for non-compliance.
Violation Consequences
Towing companies that violate state regulations face:
Financial Penalties: Fines up to $10,000 for first violations
License Impacts: Possible suspension or revocation of towing licenses
Restitution Requirements: Obligation to refund improper charges
Repeat Offender Escalation: Substantially increased penalties for subsequent violations
Enforcement Agencies
Multiple agencies may investigate towing complaints:
New Jersey Division of Consumer Affairs
Local police departments
County consumer protection offices
State Attorney General's office
Insurance Requirements for Towing Companies
Operating a towing business in New Jersey requires specific insurance coverage.
Mandatory Coverage Types
Towing operators must maintain:
Garage Liability: Covering operations at your facility
On-Hook Coverage: Protecting vehicles while being towed
Cargo Insurance: Covering damage to vehicles during transport
General Liability: For other business-related incidents
Workers' Compensation: For employee injuries
At Dependable Brokers, we specialize in helping towing companies obtain comprehensive insurance packages that meet all state requirements while protecting your business assets.
Industry Best Practices Beyond Legal Requirements
While legal compliance is essential, leading towing companies go beyond minimum requirements.
Excellence in Towing Operations
Top towing companies implement:
Clear communication with vehicle owners
Transparent billing practices
Professional driver training programs
Regular policy reviews and updates
Community relationship building
Dispute resolution protocols
Regular staff training on regulations
Conclusion
Navigating New Jersey's towing laws requires diligence and attention to detail. The state's comprehensive regulatory framework aims to balance the legitimate needs of property owners with strong consumer protections against predatory practices.
For towing companies, strict adherence to these regulations isn't just about avoiding penalties—it's about building a reputation for fairness and professionalism that leads to long-term business success. Understanding these requirements helps towing operators, property managers, and vehicle owners alike navigate potentially contentious situations with clarity and compliance.
For more information about insurance requirements for towing companies or to ensure your business has proper coverage, contact Dependable Brokers today. Our team specializes in the unique needs of the towing industry and can help protect your business while ensuring regulatory compliance.
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