Towed Car in Alabama? What the New Reporting Rule Means

You walk out to the lot and your car isn't there. Was it stolen, or towed? Under a change that took effect October 1, the answer may be easier to find, and sooner.

House Bill 42 amends Section 32-8-84 of the Alabama Code, the law on unclaimed vehicles. Representative Allen Treadaway sponsored it. It passed the House on January 22 and the Senate on March 5, and it took effect October 1, 2026. You can read the enrolled bill here.

One correction before we go further. Some summaries of this law say tow operators "must" report vehicles immediately. That isn't what it says. The word in the bill is "may." Here's what that means.

What changed

Under the old rules, a vehicle counts as "unclaimed" in a few situations. It might have been left unattended on a public road for more than 48 hours, or sat on someone's property for more than 48 hours without the owner's consent, or been left at a repair shop and not picked up within 48 hours of the work being done. Whoever had the vehicle then had five calendar days to report it to the Department of Revenue.

HB 42 adds a new option for towed vehicles. A person in possession of a towed vehicle may report it to the Department of Revenue "immediately after towing the vehicle." Reports go through what the bill calls the Unclaimed/Abandoned Vehicle Portal, which the department runs.

So the law doesn't force a tow company to report the moment it hooks up your car. It takes away any reason to wait. News coverage says the sponsor's goal is to help people find their cars faster, ease the worry that a car was stolen, and head off daily storage fees that keep growing.

What happens after a vehicle is reported

The bill left the rest of the process in place:

• The Department of Revenue puts a 60-day hold on the vehicle's title.
• The holder looks up the title state of record and requests the owner's name and address.
• The holder then sends a notice by certified mail with return receipt, or by electronic delivery with confirmation, to the owner and any lienholder. It must list where the vehicle is, the facility's normal business hours, the charges so far, the daily storage rate, and the holder's address and phone number.
• The notice has to say that if the vehicle isn't redeemed within 30 calendar days, it is considered abandoned and may be sold under the Alabama Abandoned Motor Vehicle Act.
• The department keeps public records of reported vehicles and notifies law enforcement.

The rule that protects owners

Here is the part most people don't know about. A holder who fails to report a vehicle as unclaimed, or fails to notify the owner and lienholder the way the statute requires, forfeits all claims and liens for garaging, parking, and storage up to the time the vehicle is reported. The towing charge itself and any repair claims survive. The storage charges don't.

That gives you something to push on if a bill looks wrong. If a vehicle sat for a week before anyone reported it, ask what the storage charges for that week were based on.

What the law doesn't do

It doesn't set what a tow company can charge. It only requires the notice to show the accrued charges and the daily storage rate. Local ordinances may set rates in some places, so ask. It also doesn't give you a right to your car without paying what you legally owe.

If your car is gone

1. Don't assume it's stolen yet. Look for towing signs where you parked, and call the property manager. Then call your local police on the non-emergency line. The department is supposed to tell law enforcement about vehicles reported this way, so they may already know where it is.
2. Ask the Department of Revenue. It keeps public records of unclaimed vehicles that have been reported.
3. Move quickly. Storage fees run by the day. The 30-day clock starts with the notice, and the notice goes to the address on the title record, so check that your registration address is current.

If you think you were towed wrongly or overcharged

Ask for an itemized bill. Take photos of the signs, the lot, and where your car was parked, and keep every receipt. If you plan to dispute the charges, talk to a lawyer before you pay, so you know what paying does to your position.

If you've been towed and something doesn't add up, call John Medaris Law at (205) 663-1584. We handle business and insurance disputes from our office at 230 Bearden Road in Pelham, and we'll tell you honestly whether it's worth fighting.