Limiting for Towing and Storage Fees

Ontario Regulation 115/25, made under the Towing and Storage Safety and Enforcement Act, 2021, amends Ontario Regulation 162/23 concerning charges for towing and vehicle storage services. This regulation refines the definitions and classifications of towing services by introducing clear categories for “basic,” “intermediate,” and “advanced” towing services. An advanced towing service involves complex scenarios such as a vehicle that is overturned, on non-standard surfaces, requiring multiple tow trucks, or specialized equipment. Intermediate towing services cover situations like collision-disabled vehicles, police-directed tows, or circumstances where the time involved exceeds the Director’s typical expectations, including clearing debris or prepping vehicles. A basic towing service is any service not meeting the criteria for intermediate or advanced towing.
A core component of the amendment is the maximum rate schedule system. Operators must submit their maximum rates using a standardized form and cannot deviate from approved rate structures. They must set only one maximum rate per service, and cannot charge different customers different rates for the same service. Changes to maximum rates require resubmission to the Director. The Director has authority to divide the categories of towing services further based on factors like vehicle weight, tow truck type, distance, location, time of day, or the use of tolls or permits. Importantly, certain services cannot be charged for, including unreasonable travel distances, delays caused by the tow operator’s inefficiencies, or unnecessary services. Also, operators cannot charge customers for transporting vehicle occupants in the tow truck, allowing access to the vehicle, changing the tow destination (beyond the change in distance), or retrieving a vehicle from storage for release.
For intermediate towing, operators may charge separately for preparatory work, debris clearance, or stand-by time when directed by emergency staff or police, but costs for single-use materials must not exceed their actual cost. Advanced towing can include extra charges for additional tow trucks, specialized equipment, or third-party services, but those charges are capped at 1.15 times the third-party’s cost.
Vehicle storage services are restricted to outdoor or indoor storage, with the Director empowered to separate these based on vehicle characteristics or regional differences. Ancillary services, such as providing after-hours access, may only be charged if they occur outside regular business hours. Unnecessary or inefficient services, or services related to routine retrieval of stored vehicles, cannot be charged. The regulation further requires tow operators and vehicle storage operators to accept payment by credit card, debit card, contactless mobile methods, and cash, while prohibiting them from pressuring customers to use one method over another.
Overall, this regulation standardizes towing and storage pricing, and is aimed at improving fairness, and the protection of consumers from unfair or unpredictable charges while promoting clear oversight and rate transparency.
Ontario (115/2025) June 25, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.