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It is illegal for a tow company to tow a car with someone in it. In some cases, it might not be worth it for the tow company to get the police involved (time is money). Even if the police are called, you likely won't get a ticket if you exit the vehicle and comply with the officer.
An alternative would be to tow the vehicle by raising the drive wheels off the pavement. In this case, a rear-wheel-drive vehicle would have to be towed backwards, tying the steering wheel so that the front wheels don't move.
Your car's transmission is also put under additional pressure and strain when it's being towed. If not handled properly, considerable damage can occur. Automatic transmissions are easily damaged because of the fluid inside them that is under pressure.
You can tow a car with the transmission in PARK if you have a tow truck that lifts either the front or rear wheels off the ground, depending if it's a front or rear wheel drive car.
If the vehicle is on a dolly, put the vehicle in first gear and tow. If all four wheels are on the ground, put the vehicle in neutral and tow. Vehicles with manual transmissions can typically be towed without the car running, with no risk of transmission damage.