California Vehicle Code

§ 22524.5

VEH § 22524.5 Effective Jan 1, 2026Div. 11 · Ch. 9

Statute text

(a)Any insurer that is responsible for coverage for ordinary and reasonable towing and storage charges under an automobile insurance policy to an insured or on behalf of an insured to a valid claimant, is liable for those charges to the person performing those services when a vehicle is towed and stored as a result of an accident or stolen recovery. The insurer may discharge the obligation by making payment to the person performing the towing and storage services or to the insured or on behalf of the insured to the claimant.

(b)Any insured or claimant who has received payment, which includes towing and storage charges, from an insurer for a loss relating to a vehicle is liable for those charges to the person performing those services.

(c)(1) All towing and storage fees charged when those services are performed as a result of an accident or recovery of a stolen vehicle shall be reasonable.

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Legislative history

Amended by Stats. 2025, Ch. 345, Sec. 2. (AB 987) Effective January 1, 2026.