Alabama has passed a major update to its abandoned and unclaimed motor vehicle laws, and it could significantly impact towing companies, repair shops, property owners, storage facilities, dealerships, and vehicle owners across the state.

The new legislation, known as House Bill 42 (HB42), amends Section 32-8-84 of the Code of Alabama and changes how unclaimed vehicles must be reported and handled.

Here’s a breakdown of what the new law means and why it matters.

What Is Considered an Unclaimed Vehicle?

Under the updated law, a motor vehicle may be considered “unclaimed” in several situations:

• A vehicle left unattended on a public road or highway for more than 48 hours.
• A vehicle left on private property without permission for more than 48 hours.
• A repair vehicle not picked up within 48 hours after repairs are completed or after the agreed pickup date.

This means businesses and property owners now have clearer legal guidelines for when a vehicle officially becomes “unclaimed.”

One of the Biggest Changes: Immediate Reporting After Towing

One of the most important updates in the law is the ability for towing companies to report a vehicle immediately after it has been towed.

Previously, businesses often had to wait before beginning the reporting process. Under HB42:

“A person in possession of a towed motor vehicle may report the vehicle to the Department of Revenue immediately after towing the vehicle.”

This change could help towing companies and storage facilities begin the abandoned vehicle process much faster while improving documentation and legal protection.

Mandatory Reporting Deadlines

The law also creates strict reporting timelines.

Anyone in possession of an unclaimed vehicle must report it to the Alabama Department of Revenue within five calendar days after the vehicle becomes unclaimed.

All reporting must now be completed through the Alabama Department of Revenue’s Unclaimed/Abandoned Vehicle Portal.

This digital process is expected to streamline abandoned vehicle handling across Alabama.

New 60-Day Hold on Vehicle Titles

After a vehicle is reported as unclaimed, the Department of Revenue will place a 60-day hold on the title record.

During that time:

• No new title can be issued,
• The vehicle ownership is effectively frozen,
• The state can investigate ownership or theft issues.

This protects vehicle owners and lienholders while helping reduce fraudulent title transfers.

Owner Notification Requirements

The law also strengthens notification requirements.

Businesses in possession of the vehicle must:

1. Check the National Motor Vehicle Title Information System (NMVTIS),
2. Request ownership records from the appropriate state,
3. Notify the owner and lienholder by certified mail or electronic delivery confirmation.

The notice must include:

• Vehicle location,
• Business hours,
• Storage charges,
• Daily storage rate,
• Contact information for the facility holding the vehicle.

The notice must also warn the owner that if the vehicle is not redeemed within 30 days, it may be sold under Alabama’s Abandoned Motor Vehicle Act.

Penalties for Non-Compliance

The law includes serious consequences for businesses that fail to follow the rules.

If a person or company fails to properly report the vehicle or notify the owner, they may lose their claims for storage, parking, and garaging fees.

However, towing and repair charges may still be protected under the law.

This makes compliance more important than ever for towing companies, repair facilities, and property managers.

Why This Law Matters

HB42 appears designed to:

• Improve transparency,
• Speed up abandoned vehicle reporting,
• Protect owners and lienholders,
• Reduce title fraud,
• Modernize Alabama’s abandoned vehicle system through digital reporting.

For businesses in the towing, title, and recovery industries, understanding these new deadlines and procedures will be critical before the law takes effect on October 1, 2026.

Final Thoughts

Alabama’s new abandoned vehicle law brings major procedural changes that could impact how vehicles are handled statewide. Whether you operate a towing company, repair shop, dealership, or title service business, staying compliant with the new reporting and notification requirements will be essential.

As the October 2026 effective date approaches, businesses should begin preparing their internal procedures now to avoid delays, penalties, or lost storage claims later.

For official guidance and updates, businesses should also monitor the Alabama Department of Revenue’s abandoned vehicle portal and future administrative instructions.