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Towing Contract

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A towing contract is a legal agreement between a towing company and another client that explains the terms under which towing services will be provided. It includes details such as the cost of towing, the responsibilities of both parties, liability issues, and any additional services offered. It serves to protect both parties by clearly defining expectations and ensuring that both sides understand their rights and obligations in the event of a towing situation. A towing contract will outline when and where a vehicle is to be picked up, how much it will cost to move it, and how the vehicle is to be retrieved after it’s been towed to its destination.

The towing contract outlines all the details of a tow job, such as:

  • The location of the vehicle
  • The cost of the tow job
  • Insurance coverages
  • Liability
  • Vehicle Storage

Steps to Write a Towing Contract

Once these steps have been followed in drafting a towing contract in the US, all parties will have an understanding of their rights and responsibilities throughout its term.

  1. Decide the Parties Involved. Determine who signed the contract. The person who owns the car (the customer) and the company that provides towing services.
  2. Describe Services. This is about what kind of service is being provided for towing purposes. These could include car tows, roadside assistance, and storage among others that a towing business may offer.
  3. Show Charges and Payment Terms. Show how much each type of tow costs according to their pricing plan. They might have additional fees like storage charges or any other fee they charge depending on different types of hauls, such as flat bedding or long-distance towing.
  4. Define Insurance and Liability. Specify what each party is responsible for exactly. For example, a provision can be included that states that the towing company should take care of any damages caused by them during storage or transportation along with exclusions from liability.
  5. Manage Dispute Resolution. Add clauses like mediation or arbitration, which provide mechanisms for settling disagreements that may arise under this agreement. Also, state where any court proceedings will occur and under what jurisdiction.
  6. Ensure Law and Regulation Compliance. Check whether this agreement complies with all relevant laws and regulations governing these services in my area.
  7. Verify Signatures. It is important after writing down this contract to ensure the signatures of representatives from both parties are put down there. Each party should keep a copy signed by themselves for future reference.

Key Considerations When Drafting a Towing Contract

The towing agreements and receipts have to include certain information in writing, such as:

  • Company Contact Information: Towing agreements have to include a company’s name, address, and phone number. Consumers have a right to know the contact information of the service provider that manages the transport of their property.
  • Car’s Particulars: The document should also list the year, make, and model of the vehicle to be towed. It should include the vehicle identification number (VIN) and the license plate number as well.
  • Transportation and Storage Details: You should be able to read the name of the licensed, certified driver responsible for your tow as well as the unit number. All charges should be listed and categorized as either transportation, administration, fuel surcharge, or storage fees.
  • Non-Consent Tows: The process doesn’t work the same if your car was towed without your consent because you were parked illegally or violating another road ordinance. Some states have no laws on how much a tow company can charge consumers after they’ve towed their vehicle, but others, including Utah, place restrictions on towing fees.
  • Filing Complaints: Tow truck companies are required to meet standards set forth by each state, such as obtaining the proper licensing and insurance. Consumers who believe they have been overcharged or the company has violated any rules and regulations on a state or federal level can file a complaint. In Utah, this complaint can be filed online with the Utah Department of Transportation.
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FAQs on Towing Service Contracts

  • Does My Car Insurance Company Cover Roadside Assistance or Towing Costs?

    A car insurance company may include roadside assistance or towing costs. Each company is different, so you should check with yours and see if this service is available. Many of the large car insurance companies offer this service for an additional price, such as Progressive, USAA, Allstate, and Nationwide.

  • What if I Need to Get Towed after an Accident?

    After a car accident, most insurance companies will cover the cost of a car tow within the insurance claim. The services a car insurance company offers after an accident varies with each company and coverage type. If you have questions about specific costs, call your car insurance agent.

  • How Much Does Towing Cost Per Day?

    If you get towed, storage fees at impound lots range from $30 to $80 per day. Based on a city bylaw, you may get charged a quarter of the daily rate per hour for the first four hours your vehicle is impounded.

  • How Much Does Boat Towing Cost?

    The cost to tow a boat is $200 to $500 per hour. A sea-towing membership costs $149 to $249 per year for unlimited towing.

  • How Much Does a Camper, RV, or Big Rig Cost to Tow?

    On average, campers, recreational vehicles, or big rigs are usually towed at a fee of four to seven dollars per mile. This implies that someone should expect to pay around $450 – $600 for towing an RV over 80 miles.

Towing Costs

In the US, it costs an average of $109 to have a car towed. This price, however, is not constant and varies depending on various factors. The expenses incurred for this service could be influenced by the nature of towing that is required, the time of day when the incident occurred; the distance covered during towing; and the condition of the vehicle.

The following are some additional expenses associated with having your car towed:

  • Additional services such as fueling and road assistance
  • Specialized devices needed
  • Use a windlass if your car gets stuck in snow, mud, or any other hard-to-reach area.

How Towing Costs Are Calculated

Tow truck expenses are typically determined by taking into account a variety of variables that affect the complexity and quantity of resources needed for the towing operation. First off, the majority of towing businesses will tack on a cost per mile to the initial towing rate. Although every tow firm has its price schedule, the following common criteria may influence the cost of the tow truck:

  • Distance: A significant portion of the fee is determined by the distance between the tow truck's location and the spot where your car will be picked up. Since longer tows need more fuel, time, and resources, the cost of towing normally increases with distance traveled.
  • Tow Type: The kind of tow that is required may also have an impact on the price. For a typical automobile, for instance, a basic flatbed tow truck should be sufficient, but bigger vehicles, such as commercial trucks or RVs, may require a heavy-duty tow truck.
  • Location: Depending on the area or region in which the service is rendered, towing prices may change. Fees may be greater in urban regions than in rural ones because urban places, like heavily populated cities, have higher running costs.
  • Storage Costs: You could be required to pay a daily storage fee if your car must be kept at the towing company's location before you can pick it up. These costs change based on how long storage is needed.

Key Terms for Towing Contracts

  • Tow Truck Operator: The individual or company responsible for providing the towing services outlined in the contract.
  • Tow Fee: The amount charged for the towing service, is often determined by factors such as distance towed, type of vehicle, and any additional services provided.
  • Storage Fee: The fee charged for storing the towed vehicle in a storage facility, typically assessed on a daily or weekly basis.
  • Impoundment: The temporary seizure and storage of a vehicle by law enforcement or a towing company, often due to parking violations, abandonment, or involvement in a crime.
  • Towing Conditions: The terms and conditions that govern the towing process, including procedures for payment, vehicle retrieval, and dispute resolution.

Final Thoughts on Towing Contracts

It’s clear after considering the towing contract that the agreement is extensive and meant to safeguard all involved parties’ interests. This document effectively outlines what duties should be performed by the company doing two jobs and its customer(s) to foster transparency throughout this engagement. Generally speaking, such an accord provides a reliable basis upon which successful business relationships thrive.

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ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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