Ontario Tow Truck Laws: Your Rights After an Accident Under the TSSEA

Getting into a collision is stressful enough without a tow truck driver appearing out of nowhere, pressuring you to sign paperwork, and hauling your vehicle to a storage lot you have never heard of. For years, Ontario drivers dealt with exactly that. A patchwork of municipal bylaws left gaps that predatory operators exploited, and the problem grew serious enough to involve organized crime investigations across the Greater Toronto Area.

Ontario responded with the Towing and Storage Safety and Enforcement Act, 2021 (TSSEA), the most significant overhaul of towing regulation in the province's history. The law took effect on January 1, 2024, replacing municipal licensing with a single provincial framework. Whether you drive the 401 through Durham Region or commute across the GTA, these rules now protect you.

Here is what you need to know.

Why Ontario Rewrote the Rules

Before the TSSEA, each municipality set its own towing rules. Some had detailed licensing requirements. Others had almost none. The result was a fragmented system where bad actors could operate across jurisdictions with little accountability.

The problems went beyond overcharging. Police investigations in the GTA uncovered organized crime networks operating within the towing industry, leading to more than a thousand criminal charges related to violence, property damage, fraud, and drug trafficking. Tow truck operators were receiving kickbacks from auto body shops and steering injured drivers toward specific lawyers and healthcare clinics. Turf wars at accident scenes sometimes turned violent.

The Ontario government passed the TSSEA as Schedule 3 of the Moving Ontarians More Safely Act, which received Royal Assent on June 3, 2021. The law transferred oversight of the entire towing and vehicle storage sector from municipalities to the province, creating a single set of rules that applies everywhere in Ontario.

What the TSSEA Means for You

The law is built around three pillars: certification, transparency, and consumer choice. Here is how each one works in practice.

Provincial Certification

Every tow operator, tow truck driver, and vehicle storage operator in Ontario must now hold a provincial certificate issued by the Ministry of Transportation. Certificates are valid for three years and cost $195. The application process includes a Criminal Record and Judicial Matters Check (CRJMC), which must be dated within 90 days of the application. Applicants with certain criminal convictions can be denied certification with no right of appeal.

As of July 1, 2024, tow truck drivers who apply for certification must also complete a mandatory training course from a government-approved provider before they can receive their certificate. Every tow truck must clearly display its operator name and TSSEA certificate number on the vehicle.

Rate Transparency

Tow operators must register their maximum rates with the Ministry of Transportation. These rates are published online so consumers can verify charges before a dispute ever happens. At the scene of a tow, the driver must provide you with a copy of the operator's Maximum Rate Schedule before you sign anything. Operators cannot charge more than their filed rates.

The rate schedule must also be posted at the operator's premises and on any company website. After the tow is complete, you must receive an itemized invoice before the operator can request payment, and a proper receipt once you pay.

Consumer Choice and Consent

This is the part that matters most at the side of the road. Under the TSSEA, you have the right to:

• Choose who tows your vehicle and where it goes. You are not obligated to accept the first tow truck that shows up. The only exception is when police direct a specific tow for safety reasons.
• Review and sign a Consent to Tow form before towing begins. Without your signed consent, the tow operator cannot charge you for services.
• Receive an unaltered copy of the signed consent form.
• Pay by your preferred method. Operators must accept credit cards. Cash-only demands are a violation of the law.
• Retrieve personal belongings from your vehicle at any vehicle storage facility during regular business hours (Monday to Friday, 8 a.m. to 6 p.m., and Saturday, 9 a.m. to noon) without being charged a fee.

The Anti-Solicitation Rule

One of the most important protections is the ban on unsolicited referrals. Tow truck drivers and operators cannot push you toward a specific auto body shop, storage facility, lawyer, or health professional unless you ask for a recommendation. If you do ask, they must disclose any financial benefit they receive from making that referral.

This rule directly targets the kickback schemes that were at the heart of Ontario's towing problems. If a tow truck driver starts steering you toward a "preferred" repair shop or hands you a lawyer's business card without being asked, that is a red flag and a violation of the TSSEA.

The Tow Zone Pilot Program

In addition to the TSSEA's province-wide rules, Ontario launched a Restricted Tow Zone Pilot Program on sections of major GTA highways. In these zones, only towing companies that are under contract with the Ministry of Transportation are authorized to respond.

The pilot currently covers sections of:

• Highway 401 from Highway 400 west to Regional Road 25
• Highway 400 from Highway 401 to Highway 9
• Highway 427 from the QEW to Highway 409
• Highway 409 from Highway 427 to Highway 401
• QEW from Highway 427 to Brant Street

If you have a collision or breakdown in one of these zones, call 911 if it is an emergency or you cannot safely move your vehicle out of a travel lane. Call 511 if you are safely on the shoulder and need a non-emergency tow, and select the Tow Zone Pilot option. The authorized towing company for that zone will be dispatched.

If you have a roadside assistance membership (such as CAA) and you are driving a light vehicle (gross vehicle weight rating of 4,500 kg or less), you may still call your roadside assistance provider from a safe shoulder location within the zone. Once your vehicle is outside the restricted tow zone, you can choose your own towing service and destination.

The pilot is planned to run for up to four years, with continuous evaluation.

How Your Auto Insurance Covers Towing

If you carry collision coverage or all-perils coverage on your Ontario auto policy, your insurer will typically cover towing costs when the tow is connected to a covered claim. For example, if your vehicle is damaged in a collision and needs to be towed to a repair shop, the towing cost is normally included in the claim.

However, towing for mechanical breakdowns, flat tires, or dead batteries is not covered under standard collision or comprehensive coverage. For those situations, you need a roadside assistance endorsement added to your policy, or a separate roadside assistance membership.

Most insurers also maintain a list of preferred towing companies. Using one of these preferred providers can simplify billing because the tow company can invoice your insurer directly instead of requiring you to pay out of pocket and seek reimbursement.

Your broker can confirm exactly what your policy covers. If you are unsure whether you have roadside assistance, it is worth checking before you need it.

What to Do After a Collision in Ontario

Having a plan before an accident happens is the best way to protect yourself from predatory towing. Here is a step-by-step approach:

1. Check for injuries. If anyone is hurt, call 911 immediately. If it is safe, move your vehicle out of the travel lane and turn on your hazard lights.
2. Call your insurance broker or insurer. We can advise on towing options, direct you to a preferred repair shop, and start the claims process. At Roughley, you can reach us at (905) 576-7770. Outside business hours, contact your insurance company directly. You will find carrier contact numbers on our claims page.
3. Do not sign anything under pressure. If a tow truck arrives before you called one, you are not obligated to use it. Take your time to review the Consent to Tow form and the Maximum Rate Schedule. If the driver will not show you the rate schedule or pressures you to sign quickly, decline the service.
4. Document everything. Photograph the accident scene, the tow truck (including the company name and TSSEA certificate number displayed on the vehicle), and any paperwork you receive. Note where your vehicle is being taken.
5. Report to police if required. As of January 2025, Ontario requires you to report a collision to police if total property damage exceeds $5,000, anyone is injured, public property is damaged, or a criminal offence is suspected. If police do not attend the scene, visit a Collision Reporting Centre within 24 hours.
6. File your insurance claim promptly. Report the accident to your broker or insurer within seven days. Failing to report within a reasonable timeframe could affect your claim.

Red Flags: How to Spot Predatory Towing

Even with the TSSEA in effect, it pays to stay alert. Watch for these warning signs:

• Unsolicited arrival. A tow truck that shows up at a collision scene before anyone called is likely monitoring police scanners. You have no obligation to use them.
• Cash-only demands. This is a direct violation of the TSSEA. Legitimate operators accept credit cards.
• No consent form or rate schedule. If the driver does not provide both before asking you to agree to a tow, walk away.
• Pressure to choose a specific body shop. Unsolicited referrals are prohibited. If a driver is pushing a particular repair shop, storage lot, or legal service, report the behaviour.
• Refusing access to your belongings. You have the right to retrieve personal items from a stored vehicle during regular hours at no charge.

If you experience any of these issues, you can file a complaint with the Ministry of Transportation through their online portal.

How a Broker Helps After an Accident

An independent insurance broker is your advocate throughout the claims process. We know your policy inside and out, we can recommend reputable repair shops, and we can intervene if storage fees start accumulating because your vehicle is sitting in a lot while repairs are arranged.

More importantly, we are a phone call away when you are standing at the side of the road trying to figure out what to do next. That is when having a broker matters most.

If you have questions about your auto insurance coverage, your towing rights, or what to do after a collision, contact Roughley Insurance or call us at (905) 576-7770. We have been helping Ontario drivers since 1945.