Whether you’ve broken down on the side of the M1 or returned to an empty parking spot, understanding how does car towing work is something most drivers don’t think about until they need to. The process involves more than just hooking up a vehicle and driving off, there are different tow truck types, specific methods for moving locked or parked cars, and costs that vary widely depending on the situation and state you’re in.
Getting towed, or needing a tow, also raises questions about your insurance. Does your policy cover the cost? What happens if your car is damaged during transport? At National Cover, we include 24/7 towing with our comprehensive car insurance policies, so our clients aren’t left stranded or out of pocket when things go wrong on the road. It’s one of the practical extras that makes a real difference at the worst possible time.
This guide breaks down the mechanics of how tow trucks actually lift and carry vehicles, the rules and regulations around towing in Australia, what you can expect to pay, and how to retrieve an impounded car. We’ll also cover how your insurance fits into the picture, so you know exactly where you stand before you need to make that call.
Why car towing matters in Australia
Australia’s road network is vast, and breakdowns, accidents, and illegal parking happen every single day across the country. Understanding how does car towing work isn’t just useful trivia. It directly affects what you pay, how quickly you get your car back, and whether you have any recourse if something goes wrong during the process. Towing touches a wide range of situations, from a flat battery on a suburban street to a serious collision on a remote highway, and being unprepared for any of them can cost you time and money.
Towing is more common than most drivers expect
Each year, tens of thousands of vehicles are towed across Australia for reasons ranging from mechanical failure to parking infringements. Australia has one of the highest rates of vehicle ownership per capita in the world, which means the pool of cars that could need towing on any given day is enormous. If you drive regularly, the odds of facing a tow situation at some point are significant, whether your car breaks down, you’re in a crash, or you return to find your vehicle gone from a clearway.
Your insurance policy is one of the most important factors in determining how much a tow will actually cost you out of pocket.
State rules add another layer of complexity
Towing regulations in Australia are not uniform across all states and territories. Each jurisdiction sets its own rules around maximum towing fees, how operators must notify you, and how long your vehicle can be held before storage charges begin to accumulate. In New South Wales, for instance, NSW Fair Trading outlines specific fee caps and operator obligations that protect consumers. What you are legally entitled to in Queensland may differ significantly from what applies in Victoria or Western Australia, so knowing your state’s rules before a tow happens puts you in a much stronger position.
How tow trucks move cars
Understanding how does car towing work at a mechanical level helps you know what to expect when a truck arrives. Tow operators in Australia primarily use two types of equipment, and the method they choose depends on your vehicle type, its condition, and the circumstances of the tow.
Flatbed tow trucks
A flatbed truck carries your car on a flat platform that tilts down to ground level using a hydraulic system. The operator drives or winches the vehicle onto the bed, then tilts the platform back to horizontal for transport. This method keeps all four wheels off the road, which makes it the safest option for low-clearance cars, all-wheel-drive vehicles, and cars with serious mechanical damage.
Flatbed towing is generally the preferred method when your vehicle has drivetrain or suspension damage, as wheel-contact methods can cause further harm.
Wheel-lift tow trucks
Wheel-lift trucks use a metal yoke that slides under either the front or rear wheels, lifting that end of the car off the ground while the other two wheels roll along the road. These trucks are faster to deploy and common in roadside assistance and parking enforcement situations. They work well for standard vehicles but are not suitable for all-wheel-drive cars unless all four wheels are lifted using dollies.
How towing works when the car is locked or in park
One of the most common questions people have about how does car towing work is what happens when the car is locked or the transmission is in park. The short answer is that trained operators have methods to handle both situations without needing your keys or your permission if the tow is authorised.
Moving a car with the transmission in park
When a car is in park, the transmission locks the driveshaft, which means the wheels cannot roll freely. For a wheel-lift tow, the operator places wheeled dollies under the two locked wheels, allowing the vehicle to be moved without rotating the tyres. On a flatbed, this is not an issue at all, since your car is winched or pushed onto the platform regardless of gear position.
Never assume a parked car is safe from being towed. Authorised operators have the equipment to move it regardless of what gear it is in.
Moving a locked car
A locked car presents no real obstacle for a flatbed or wheel-lift operator. Your vehicle does not need to be unlocked for it to be loaded, transported, or impounded. The operator simply uses the mechanical equipment to move it without accessing the interior.
How towing fees and storage charges are set
Understanding how does car towing work from a cost perspective is just as important as knowing the mechanics. Towing fees in Australia are not set by a single national standard, which means what you pay can vary depending on your state, the reason for the tow, and how long your car sits in a holding yard.
What operators can charge
Each state and territory sets its own maximum fee schedules for tow truck operators, covering callout fees, per-kilometre rates, and after-hours surcharges. In New South Wales, for example, the government publishes regulated fee caps that operators must follow for accident towing. Private property tows often carry different rules again, so always ask for an itemised invoice.
Always request a written cost breakdown before your vehicle is released, since verbal quotes are difficult to dispute later.
Storage fees after impounding
Once your car is in a holding yard, daily storage charges begin to accumulate quickly. Most operators charge a flat daily rate, and some states allow those fees to compound the longer the vehicle sits uncollected. The practical takeaway is that acting fast after a tow saves you money, since a two-day delay can add a significant amount to your total bill.
What to do if your car gets towed or impounded
If you return to find your car missing, acting quickly limits the storage fees that accumulate daily. The steps you take in the first 24 hours have the biggest impact on what you end up paying.
Locate your vehicle first
Contact your local police station or council parking authority to confirm the tow and find the holding yard’s address. In most states, tow operators are legally required to notify authorities soon after completing a tow, so this information should be available promptly.
Acting within 24 hours can save you significantly in storage charges.
Confirm the holding yard’s address and operating hours before you travel, since many yards have restricted release windows that could delay your pickup if you arrive outside those times unprepared.
Retrieve your car and dispute fees if needed
Bring your driver’s licence and proof of vehicle ownership when you collect your car. Before paying, request an itemised invoice and check it against your state’s regulated fee schedule, available from bodies like NSW Fair Trading or Consumer Affairs Victoria.
Your insurer may cover towing and storage costs depending on your policy, so check your coverage first. Knowing how does car towing work from a cost perspective means you go in understanding exactly what you should and should not be charged.
Final takeaways
Understanding how does car towing work gives you a real advantage before you ever need to call a tow truck. Operators use flatbed or wheel-lift equipment depending on your vehicle’s condition, and neither method requires your car to be unlocked or in neutral. Towing fees vary by state, storage charges accumulate daily, and knowing your local fee schedule helps you spot overcharging before you hand over any money.
The fastest way to reduce your towing costs is to act within 24 hours of the tow and check your insurance policy before paying anything out of pocket. Many comprehensive policies cover towing and storage, which can wipe out a significant portion of the bill. If your current insurer does not include 24/7 towing as a standard benefit, it is worth reassessing what your coverage actually provides. Get a quote from National Cover and see what comprehensive protection looks like with towing included from day one.
