Kentucky Caps the Tow Drop Fee at 50% and Requires a Posted Rate Sheet

Kentucky rebuilt its towing consumer law in 2021 Ky. Acts ch. 74, which created KRS 281.920 to 281.936, and amended the notice, rate and release sections again in 2025 Ky. Acts ch. 152, effective June 27, 2025. The statutes split into two tracks: emergency towing after a crash or breakdown under KRS 281.922, and private property towing under KRS 281.924, which is the track that covers apartment lots, shopping centers and permit-parking areas.

Before a private property tow can happen, KRS 281.924(3) requires the property owner to post, at the location of the tow-away zone, a sign clearly visible to the public stating that the area is a tow-away zone, giving pertinent contact information, and describing who is authorized to park there or prohibited from parking there. The statute does not fix a sign height, size or lettering, so the operative test is whether the sign is clearly visible and carries those three elements.

The drop fee is the provision most Kentucky drivers need. Under KRS 281.924(5), if the owner or operator arrives while the vehicle is being towed, the towing company shall give oral or written notification that the owner may pay a fee no greater than 50% of the company's normal release fee, must release the vehicle on payment, and must give a receipt showing the full normal release fee and the amount actually paid. Note the trigger: the driver has to arrive while the vehicle is being towed, not after it has left the lot.

Where the car goes is limited too. KRS 281.924(4) requires the vehicle be taken to a storage facility within 25 miles of the tow-away zone, or if none exists inside 25 miles, to the nearest facility. KRS 281.924(6) gives the towing company two hours after completing the tow to notify the law enforcement agency with jurisdiction over the property, so a driver who returns to an empty space can call local police to find out where the car went. Before pulling the vehicle off the truck, the company must photograph or otherwise visually document existing damage, debris or damaged cargo under KRS 281.924(2).

Kentucky does not publish a statewide tariff. KRS 281.926(3) instead requires every towing company and storage facility to post a rate sheet at its place of business, give a current copy to the nearest Kentucky State Police post and every law enforcement agency in its service area, produce it on a customer's request, and use only one rate sheet for all customers, with an exception for rates negotiated in a contract with a law enforcement entity. Any charge above that sheet is "deemed excessive," must be refunded to the payor within 30 days of the department's notification, and if it touches a property or casualty insurance policy it becomes a fraudulent insurance act under KRS 304.47-020. A company that fails these duties is removed from the state police and local wrecker logs for six months on a first violation and one year on any later one. KRS 281.932(1) separately forbids charging above the rate sheet for towing, cleanup or storage.

An itemized invoice is due within one business day of the completed tow under KRS 281.926(4), and KRS 281.926(5) lists what it must show: date and time of the tow, where the vehicle went, the company's name, address and phone, the vehicle's color, make, model, year and VIN, the plate and state, the original towing cost, storage expressed as a daily rate, and other fees such as documentation and vehicle search fees. Any additional charge must appear as its own line item with an explanation and exact amount.

Getting the car back. KRS 281.930(2) requires release on payment of all costs to a properly identified owner or lienholder, or to an insurer's authorized representative with proof of coverage. KRS 281.930(4) forces the company to accept cash, an insurer's check, credit card, debit card, money order, or a bank check, so a cash-only impound lot is unlawful in Kentucky. KRS 281.930(3) guarantees the right to physically inspect the vehicle during posted business hours before paying, and KRS 281.934(2)(c) bars a storage fee for any day the company would not permit release or inspection during its posted business hours. The company must be reachable by phone 24 hours a day and return calls within 24 hours under KRS 281.930(6).

Notice to the owner runs on a fixed clock. KRS 281.928(1) gives the towing company one business day to ask the Transportation Cabinet who owns the vehicle and 10 days from removal to send certified-mail notice to the owner and any lienholder. If a separate storage facility holds the car, KRS 281.928(3)(c) makes it forfeit all storage fees accruing after 10 days from the date of tow when it fails to send that notice. The notice must include the tow date and time, where the vehicle was taken from, where it is now, contact details, a full vehicle description with VIN and plate, and a copy of the rate sheet.

Rate policing runs through the Transportation Cabinet and law enforcement rather than a consumer court. 47-020. A company that breaks the rate-sheet rules is removed from the Kentucky State Police wrecker log and every local agency's log in its service area for six months, and for one year on any subsequent violation, which is the sanction with real teeth because it cuts off police-ordered tows. 928(3)(c). 934(2). 932(2). 928(5).