Legislative Update: Indiana House Bill 1184 Signed IntoLaw

Indiana Governor Eric Holcomb recently signed Indiana House Bill 1184 into law. The bill includes several provisions that impact towing operations across the state, particularly regarding private property towing, payment requirements, and access for tow operators responding to emergencies.

Credit Card Payment Requirement

One of the most significant changes for towing companies is a new requirement related to payment methods.

Under the new law, towing companies must accept credit cards as a form of payment for vehicle release. Operators may charge a processing fee for credit card transactions; however, the fee is capped at 3 percent of the total charge.

This provision was intended to ensure vehicle owners have a reliable way to pay and retrieve their vehicles without delays due to payment limitations.

Private Property Tow-Away Zone Signage

The law also establishes specific standards for tow-away zone signage on private property.

For a vehicle to be legally towed from a private lot, the tow-away zone sign must meet certain requirements, including being posted between five (5) and seven (7) feet above the ground and clearly identifying the property as a tow-away zone.

If signage does not meet the statutory requirements, the legality of the tow could be challenged.

Emergency Response Access

HB 1184 also clarifies that tow trucks responding to emergency calls may use the shoulder of the roadway when necessary to reach the scene of a crash or disabled vehicle. This provision helps ensure tow operators can access incident scenes more quickly and safely.

What This Means for Towing Companies

These updates represent important operational changes for many towing businesses in Indiana. Companies should review their procedures to ensure compliance with the new requirements, particularly regarding credit card acceptance and signage verification for private property towing.

The Indiana Towing and Wrecker Association will continue monitoring legislative developments and working with policymakers to represent the interests of Indiana’s towing professionals.

Upcoming Indiana Events (2026)

• Work Truck Week 2026: March 10–13, 2026, at the Indiana Convention Center in Indianapolis. This is North America’s largest work truck event, featuring new recovery equipment and the Green Truck Summit.
• ITWA Leadership Change: As of January 1, 2026, Bill McClannahan has taken over as the new President and  of the Indiana Towing & Wrecker Association (ITWA). Sue Miles is the new Executive Director.

Safety Alerts

• Expanded Move Over Law: Indiana law now requires drivers to move over or slow down for all stationary vehicles with flashing lights, including disabled passenger cars. Failure to comply is a Class B infraction with fines up to $1,000.

View the bill here