Can a Towing Company Hold Your Car Hostage in Texas? Know Your Legal Rights

Your Rights Under Texas Law

Texas has some of the strongest anti-predatory towing laws in the country, governed by the Texas Occupations Code Chapter 2308. Here is what you need to know to protect yourself and your wallet.

1. They Must Display Clear Signage

Before a towing company can legally remove your vehicle from a private parking lot, the property must have clearly visible "No Parking" or "Tow-Away Zone" signs. These signs must be at least 18x24 inches, posted at every entrance, illuminated at night, and include the name and phone number of the towing company. If the signs were missing, faded, or too small, you may have grounds to dispute the tow.

2. Maximum Fees Are Capped by Law

Texas law sets maximum fees that towing companies can charge for non-consent tows (when your car is towed without your permission). As of 2026, the maximum light-duty tow fee is capped, and storage fees are regulated per 24-hour period. If a towing company charges you significantly more than the posted county rate, they are breaking the law.

3. You Have the Right to a "Drop Fee"

If you arrive at your car while the tow truck is hooking it up but has not yet left the property, the driver must release your vehicle for a reduced "drop fee" (typically half the tow fee). They cannot refuse to drop your car or demand the full tow price.

4. How to Fight a Predatory Tow

If you believe your car was illegally towed or you were overcharged, you can:

• File a complaint with the Texas Department of Licensing and Regulation (TDLR).
• Request a tow hearing at your local Justice of the Peace court within 14 days.
• Take photos of the signage (or lack thereof) at the property immediately.

5. When You Need a Legitimate Tow

If your car breaks down and you need a fair, honest tow, always call a company you choose rather than accepting whoever shows up. A trusted towing service in Houston or Pasadena will give you a clear price upfront and take your car where you want it to go — not to their own impound lot.

---

Frequently Asked Questions