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Towing Contracts Explained: Motor Club, Police Rotation, Private Property, Municipal and Retail

Tim Young
Tim Young

08 Sep 2026

  1. Home
  2. Blog Post
  3. Towing Contracts Explained: Motor Club, Police Rotation, Private Property, Municipal and Retail

Most towing companies run on a mix of contracts without ever writing down what each one actually pays once the deadhead miles, the paperwork and the wait for the check are counted. Here are the five main ways work reaches a tow truck, what each involves, and how they compare. A sixth, the referral bonus, sits on top of one of them.

1. Motor club and roadside network contracts

What it is. You sign up as a provider with a network such as Agero, Urgently, Honk or AAA. Their members call the network; the network dispatches you.

How you get it. An online application, insurance certificates, vehicle and driver details, and a compliance check. Onboarding takes days to weeks.

What it pays. A per-call rate the network sets, typically below your retail card, sometimes with mileage bands. Payment lands in 15 to 45 days by check or ACH. Disputes go through the network's process.

What it costs you. Acceptance-rate and ETA scoring, calls that pull you across town, and a customer who remembers the network rather than you.

Best for. Filling gaps in the day and keeping new trucks moving while you build direct work.

2. Police rotation

What it is. A place on the list a police department or highway patrol calls, in turn, for accident scenes, arrests and abandoned vehicles.

How you get it. An application to the agency, usually with minimum equipment, a secure storage yard, response-time commitments, background checks and inspections. Many agencies open the list only periodically.

What it pays. Rates are often set by the agency or by regulation. The vehicle owner or their insurer pays, and storage fees accrue until release.

What it costs you. Round-the-clock availability, strict response times, and the administration of impound, notice and release.

Best for. Operators with a yard, night coverage and the patience for compliance paperwork.

3. Private-property and impound agreements

What it is. A standing agreement with an apartment complex, HOA, retail centre or parking operator to remove unauthorised vehicles.

How you get it. Direct sales to property managers, backed by proper signage and a written agreement.

What it pays. Release and storage fees paid by the vehicle owner, usually capped by local rules. The property typically pays nothing.

What it costs you. Angry customers, disputes, and a business that depends on getting every notice and photo right.

Best for. Operators who want predictable volume and can run a tightly documented impound process.

4. Municipal and fleet contracts

What it is. A bid contract with a city, county, transit agency or commercial fleet to tow their vehicles or clear their roads.

How you get it. A formal procurement: bid documents, insurance, references, sometimes a bond.

What it pays. Negotiated rates, invoiced monthly, paid on the customer's terms, often net 30 to net 60.

What it costs you. Months of sales cycle, reporting requirements, and the risk of a single customer being most of your revenue.

Best for. Established operators with the capacity to guarantee coverage.

5. Retail

What it is. The customer calls you directly, agrees your rate, and pays you at drop-off. Cash calls, card calls, a shop calling for its own customer.

How you get it. Being findable: a complete Google Business Profile, reviews, a phone that is answered, and relationships with the shops and dealers customers already trust.

What it pays. Your full rate, same day. No dispute process, no scoring.

What it costs you. Marketing effort and a fast, consistent phone answer, because the customer is calling three companies at once.

Best for. Everyone. Retail is the highest-margin work in towing and the only bucket where you set the price.

The sixth line: referral bonuses on retail tows

A referral program is not a contract for work; it is a second payment on work you already have. The Pep Boys Tow Referral Program earns Dolooma operators a bonus, starting at $20 per completed referral and rising with volume, when a retail customer is dropped at any Pep Boys location and the drop-off is logged in Dolooma within 48 hours. The customer still pays your tow fee. Enrollment is free, there is no exclusivity, and it runs alongside every contract above. With more than 800 Pep Boys locations in 36 states and Puerto Rico, most retail markets have one within a few miles.

How to think about the mix

  1. Know the true margin on each. Include deadhead miles, driver waiting time, and days to payment. Network work often looks better on the rate sheet than on the bank statement.
  2. Use contracts to fund retail growth. Rotation and network work keep the trucks busy while you build reviews and shop relationships.
  3. Stack payments where you can. Retail tows are the only ones that can earn a referral bonus, which is one more reason to grow that share.
  4. Do not let one contract become the business. A lost rotation slot or a network rate cut should hurt, not end you.
towing contracts
police rotation
motor clubs
private property towing
retail tows

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