A towing company cannot suspend your license on its own
A towing company has no power to suspend your driver's license. Only your state's Department of Motor Vehicles (or equivalent agency) can do that. However, a towing company can set off a chain of events that leads to suspension — usually by reporting an unpaid towing or storage bill to a collection agency, which then reports it to your state, triggering license suspension under your state's laws.
The suspension does not come from the towing company itself. It comes from your state when you fail to pay a debt that has been reported to the DMV. Understanding the difference matters because it changes who you need to contact and what steps will actually restore your license.
Key Takeaways
- Towing companies report unpaid bills to collection agencies, which can then report the debt to your state DMV, leading to license suspension.
- Not all states suspend licenses for unpaid towing bills — the rules vary significantly by state and sometimes by county.
- If your license was suspended because of a towing debt, you must resolve the debt with the towing company or collection agency, not the DMV.
- The DMV will restore your license once the debt is paid and the towing company or collection agency notifies the state that the account is settled.
- Some states allow you to request a hearing before suspension takes effect, but you must act quickly — usually within 10 to 30 days of notice.
How unpaid towing bills lead to license suspension
When you do not pay a towing or storage bill, the towing company typically waits 30 to 90 days, then sells the debt to a collection agency. The collection agency then reports the unpaid debt to the DMV in states that allow this practice. Your state's DMV receives the report and suspends your license automatically — not because the towing company asked them to, but because state law requires it when a debt reaches the DMV's records.
This process takes time. You will usually receive a notice from either the towing company, the collection agency, or the DMV before suspension actually happens. The notice will tell you the amount owed, who to pay, and when the suspension will take effect. Read this notice carefully, because it also tells you whether you have the right to request a hearing.
The key point: the towing company is not the one suspending your license. Your state is suspending it because of a debt that was reported to the state. This means paying the towing company (or the collection agency that now owns the debt) is what stops the suspension — not negotiating with the DMV.
Which states suspend licenses for unpaid towing bills
Not every state suspends licenses for unpaid towing or storage fees. Some states do; others do not. A few states allow it only under certain conditions — for example, only if the bill exceeds a certain amount, or only if the vehicle was towed for a traffic violation rather than a parking violation.
Your state's rules depend on its specific laws about debt reporting to the DMV. Some states have a broad list of debts that trigger suspension (medical bills, court fines, child support, and towing bills all together). Others have a narrow list. A few states do not allow any non-traffic debt to trigger suspension at all.
To find out whether your state suspends licenses for unpaid towing bills, contact your state DMV directly or check your state's DMV website. You can also ask the towing company or collection agency when they contact you — they will know the rules in your state because they use them every day.
What to do if you receive a suspension notice for a towing bill
First, confirm that the bill is actually yours. Towing companies sometimes tow the wrong vehicle, and collection agencies sometimes pursue the wrong person. Check the vehicle identification number (VIN), the towing date, and the location where the vehicle was towed. If any of these are wrong, contact the towing company when ready with proof (photos, registration documents, or a police report if the vehicle was stolen).
If the bill is correct but you cannot pay the full amount right away, contact the towing company or collection agency before the suspension date. Many will set up a payment plan rather than report the debt to the DMV. Even if they have already reported it, paying the debt will stop the suspension process — though it may take a few days or weeks for the DMV to process the removal once the debt is marked as paid.
If you believe the bill is unfair (for example, the towing was illegal, or storage fees are unreasonably high), you may have the right to request a hearing. The notice you received will say whether this option exists in your state and how to request it. Act quickly — most states give you only 10 to 30 days to request a hearing, and missing that important date means you lose the right.
How to restore your license after paying a towing bill
Once you pay the towing bill or collection agency, ask for written confirmation that the account is settled. Keep this confirmation. The towing company or collection agency is responsible for notifying the DMV that the debt has been paid, but this does not happen when ready — it can take anywhere from a few days to several weeks depending on how the company reports to the state.
After you have paid and received confirmation, contact your state DMV to check the status of your license. Some states allow you to check online; others require a phone call or visit. Ask the DMV when the suspension will be lifted. If more than a month has passed since you paid and the suspension is still showing, contact the towing company or collection agency again and ask them to confirm to the DMV that the debt is resolved.
Do not drive while your license is suspended, even if you have paid the bill and are waiting for the DMV to process the removal. Driving on a suspended license carries serious penalties — fines, jail time, and further license suspension — and it will not help your case if you are stopped.
Preventing towing bills from reaching the DMV
If you have a vehicle that has been towed, deal with the bill as soon as possible. Most towing companies will negotiate on storage fees if you contact them within the first week or two. After 30 to 90 days, the debt goes to a collection agency, and your options narrow.
If you cannot afford to retrieve your vehicle, some states and cities have programs that help low-income people recover towed vehicles. Contact your local legal aid office or your city's department of transportation to ask whether these programs exist in your area. You can also ask the towing company whether they have a hardship policy or whether they will release the vehicle for a reduced fee.
If the vehicle is not worth retrieving, you can abandon it. The towing company will eventually sell it at auction to cover the towing and storage costs. However, you will still owe any remaining balance after the sale, and that balance can still be reported to the DMV and trigger suspension. Abandoning the vehicle does not erase the debt.
Frequently Asked Questions
Can I get my license back before I pay the full towing bill?
Not usually. Most states require the debt to be fully paid or a payment plan to be in place before the DMV will lift the suspension. However, some states allow you to request a hearing where you can ask a judge to lift the suspension temporarily while you arrange payment. Check your suspension notice to see whether this option is available in your state.
What if the towing company is out of business?
If the original towing company is out of business, the debt may have been sold to a collection agency. Contact the collection agency listed on your suspension notice and pay them. If you cannot find a collection agency and the company is truly defunct, contact your state DMV and ask what steps you can take to clear the suspension. Some states have procedures for this situation.
Can I dispute the towing bill itself?
Yes, but you must do it quickly and through the right channel. If you believe the tow was illegal or the fees are unreasonable, contact the towing company in writing and explain why. If they refuse to adjust the bill, you may be able to file a complaint with your state's attorney general or your city's consumer protection office. However, these complaints do not automatically stop the suspension — you still need to resolve the debt or request a hearing.
Will paying the bill remove the suspension when ready?
No. Paying the bill stops the suspension process, but the DMV needs time to process the removal once the towing company or collection agency reports that the debt is settled. This usually takes a few days to a few weeks. Contact the DMV after paying to confirm when your license will be restored.
What happens if I ignore a towing bill notice?
Your license will be suspended on the date listed in the notice. Ignoring it does not make the problem go away. Once suspended, you cannot legally drive, and driving on a suspended license carries serious penalties. The debt will also continue to accrue interest and collection fees, making it more expensive to resolve.