Amendment of Rules Governing Tow Operators

Adopted Rules: Closed to Comments

Effective Date: 
Wednesday, February 27, 2019

Statement of Basis and Purpose of Rule

Certain rates prescribed in Title 6, Section 2-368 of the Rules of the City of New York are inconsistent with the rates required in Subchapter 31 of Title 20 of the New York City Administrative Code. Specifically, Sections 20-509 and 20-509.1 dictate specific charges for the towing and storage of vehicles that are different than rates provided in Section 2-368. The Department of Consumer Affairs is amending Section 2-368, to correct this inconsistency. This amendment will also remain consistent with Title 34, Section 4-07(i)(3) of the Rules of the City of New York, which is a Department of Transportation rule that references Section 2-368. 

This rule also amends the subdivision regarding the liability insurance that applicants for a tow license must carry. The Law Department recommended to DCA that references to “personal injury” in Section 2-362(d) be changed to “injury”. This recommendation was made to align the text of this rule with the common usage in the insurance industry. Commercial automobile insurance policies typically do not use the phrase “personal injury” and instead use “bodily injury.” Use of “injury” without qualification in this rule will ensure that applicants obtain sufficient liability insurance policies.