Towing oversight legislation needed to protect consumers from wreck chasers

Automobile accidents are a harrowing experience. In the immediate aftermath of an accident, a driver may be dealing with missing work or an appointment, distressed children, potential liability issues and traffic violations, other motorists trying to circumvent the wreck, and even injuries. This high-stress situation creates the perfect opportunity for an unscrupulous towing company take advantage of a consumer.

This often comes in the form of overzealous solicitation, excessive fees, and shady business practices that delay or make it difficult for owners to retrieve their vehicles.

Over the past few years, responding to these rogue practices, there has been an uptick in towing-reform legislation by states and municipalities, such as Arizona, California, and Missouri. In July 2018, the National Council of Insurance Legislators (NCOIL) adopted model towing legislation that included a number of consumer protections:

Licensing or registration: State or municipal licensing of towers can help authorities know who is towing vehicles, set minimum standards, and hold bad actors accountable.

Restricting solicitation at accident scenes: Often, dishonest towers will listen to police scanners and attempt to swoop onto an accident scene without being called. Motorists assume law enforcement called the tower and consent to the tow without the benefit of consulting a tow rotation list or their insurer.

Requiring a written estimate of charges prior to towing: Requiring towers to provide, prior to towing, a written estimate is among the best protections government can extend to consumers. Without a written estimate, some towers have been known to attempt to charge motorists $1,000 for a few-mile tow and hold the car hostage (with incurring storage fees) until it is paid.

Fair fees: Without setting towing charges, legislators should require fees be rational and prohibit the add-on of vague fees, such as transfer, gasoline, gate fees, or excessive administrative fees.

Reasonable access: Towers should be required to store towed vehicles at a conspicuous, known location, and consumers should have the right to recover, inspect, or retrieve personal items from their vehicle during normal business hours. Mandating reasonable access helps prevent towers from racking-up storage fees by limiting access.

Tim Lynch, Senior Director of Government Affairs for the National Insurance Crime Bureau (NICB) said NCOIL's towing model was the culmination of a two-year effort among insurance companies and their trade groups, NICB, state lawmakers, and towing interests. "Robust laws combined with swift enforcement are needed to make these protections truly meaningful," Lynch said.

Jack Quinn, NICB Senior Special Agent and former Philadelphia police officer has been on the scene of hundreds of accidents. He says he has seen a much-improved towing climate since Philadelphia adopted in 2017 a towing ordinance that established a tow rotation list. "The tow list has resulted in a reduction of tow-abuse, and provides consumers peace of mind," Quinn says.

Elected officials or staff interested in strengthening their consumer protections related to accident scene tows should contact NICB's government affairs department at [email protected] or 800-447-6282.