Is it OK to tow an automatic car in neutral? It also states that, if you must tow it with the drive wheels on the ground: Automatic Transaxle - Your vehicle may be towed under the following conditions: The gear selector must be in NEUTRAL, the distance to be towed must not exceed 15 miles (25 km), and the towing speed must not exceed 25 mph (40 km/h), Insurance Guide, Insurance