Gary, IN Business Licensing & Operations: Towing Companies (2026)

Article III of the Gary traffic code, Sections 40-153 through 40-164, governs towing companies while they operate under contract with the city; it does not reach private, non-consent tows arranged off-contract. Only towing companies located within the city limits may serve as an authorized tower, and each must keep at least two working tow trucks, all lettered on both sides with the owner's name and business address in letters at least four inches high. Companies must carry $1,000,000.00 in liability insurance and maintain a fenced storage lot large enough for the vehicles they impound, kept free of junk cars in public view.

The council towing committee sets the towing boundaries dividing the city into zones, with a majority vote of the common council required for approval. Charges paid by the vehicle owner or lienholder are capped at rates the common council sets: $100.00 for a regular tow, $125.00 for a flatbed or motorcycle tow, $200.00 for trucks between one and two tons, $275.00 per unit for semitractors with each attached trailer, plus $20.00 a day for outside storage and $25.00 for inside storage. Separately, the city collects its own fee at release, either $20.00 per tow or $50.00 for a semitractor tow, deposited into the general fund by the controller; the owner must obtain a release and pay that fee before removing the vehicle or any property from it. Towing companies must also file monthly tow reports with both the city controller and the common council office.