New data compiled by the American Transportation Research Institute underscores the severity of predatory towing fees charged in the aftermath of large truck crashes and offers recommendations to address the problem.
ATRI’s survey of motor carrier-reported towing incidents and analysis of variations in the frequency of predatory incidents occurring in 2021 revealed that — relative to motor carriers’ mileage — Indiana had the most disproportionately high share of predatory towing incidents, followed by New Jersey.
“The top ten states are located in all parts of the U.S., confirming that there is no regional pattern to predatory towing incidents,” according to the study, which ATRI released on Wednesday.
The study found that excessive rates and unwarranted additional service charges were the two most common forms of predatory towing, experienced by 82.7% and 81.8% of surveyed motor carriers, respectively.
In addition, ATRI’s analysis of truck crash-related towing records found that 29.8% of invoices were found to include either excessive rates or excessive additional charges. Roughly half of these cases had excessive rates for equipment, labor or storage, and the other half had excessive miscellaneous or administrative charges.
“Claims involving predatory towing are definitely on the rise,” according to Adam Brand and Shahan Kapitanyan, who were interviewed by ATRI as part of the study for their legal expertise on the issue.
“We are receiving assignments throughout the United States involving grossly inflated tow, recovery and remediation invoices. Reasons for these increases include training provided to T&R [towing and recovery] companies aimed at increasing the amounts they can bill insurers, communication between T&R companies who have successfully recovered payment on inflated invoices, and a general understanding by the public that inflating a T&R claim or invoice is acceptable.”
The study points out that a “patchwork of municipal, county, and state regulations” currently governing towing are often insufficient to prevent predatory activities against truckers.
“Of the states that have more robust statewide regulations of the T&R industry, regulatory authority can fall under the jurisdiction of a variety of agencies, including state police or departments of public safety, departments of transportation, consumer affairs, or utility commissions,” the study notes. “The wide range of jurisdictions that regulate the T&R industry can make it difficult for interstate motor carriers to know what protections are at their disposal.”
The study includes a compendium of state towing regulations along with recommendations on improving regulatory coverage areas to close loopholes.
For example, state regulations should support allowing motor carriers to choose their preferred towing and recover company whenever possible, the study recommends, and regulatory language “should explicitly define crash site conditions in which this choice is applicable.”
Lewie Pugh, executive vice president of the Owner-Operator Independent Drivers Association, which contributed data for the study, said the issue centers around “non-consensual” tows, which usually occur when towing companies are called not by the truck driver involved in the accident but by the highway patrol concerned with clearing accidents as quickly as possible.
“We don’t have a problem with that, the problem we do have is that some towing companies will take advantage of truckers when someone else calls for the service, because in many cases there are no state laws or agencies that oversee that type of situation,” Pugh told FreightWaves.
“If there’s no regulation like in most states to address unscrupulous towing companies, it’s an open checkbook. I’ve seen itemized bills where they’ve charged $1,000 for using their radios on a tow. We’ve seen bills go well into six figures.
“It’s a huge problem in the industry that kind of flies under the radar.”
Stephen Webster
There are a large number of good towing companies out there in the U S and Canada. In certain parts of Canada a number of co ops with repair shops and storage yards have a very fair price for members
If the A T A wants to fix the problem they could through their members help fund and set up about 30 key locations across the U S . Each location should have parking for 300 plus trucks and a storage yard for at least 50 units of all sizes plus a 5 bay building for storage of 2 or more tow trucks and a first response vehicle At least 3 bays for repairs with at least 1 person(s) on are available with with medical training. This should be run as a co ops with a 15 percent surcharge to any large trucking companies that did not contribute to the cost of setting in this network. 1 tow truck at each location should be setup to a military spec unit
At some location should have 20 housing units and medical clinic and spot for 6 personnel military unit to live and help as needed. The gov should agree to cover half the insurance costs of any towing companies that agree to a set rate and will help in a state of emergency or a bad event
Robert
Welcome to America land of the free and home of the thieves
Stephen webster
We need to set up a number of co op truck parking yards as truck stops with a 5 bay drive through 4 bays for repair 1 bay for a tow truck and a first response vehicle (S) any trucking companies over 200 units that did not contribute toward the cost would have a 15 percent surcharge on the towing and repair bill. A number of co ops in Canada have a for hire repair shop with some truck parking in some areas they charge on average a member rate of $80U S or $110 for repairs plus a 15 percent market up on parts and a regular single axle tow truck at $180 CD hr a tri axle 35 tonne truck at $320 hr plus a after hours _$100 call out fee for membership and lease or owner ops Canadian
Gary D Paine
We had a county Sheriff in Ohio call the “preferred” tow company, Kevin’s towing. They took our truck and trailer, 6.5 hours of work with one crane to put a rollover back on its wheels. They tried to say our trailer needed towed to a repair shop, we had to get the Police involved to get our trailer and cargo back, the trailer had no damage and we pulled it to the delivery point without issue.
They charged us over $10,000 per hour for the crane and tow, total bill was $76,000. We had to pay in advance before they would release our truck and trailer. Ohio needs to regulate these companies. The Police and Sheriff departments do a great job, but this is an area they are not trained or skilled in managing. We need someone other than police managing the approved list of tow companies. It is time for some regulations on these highway robbers.
Bob bolus
I will be more than happy to help with this issue, having been in the transportation industry and towing companies that I have owned and operated for the past 53 years in the state of Pennsylvania out of 7 locations my main base is out of Scranton Pennsylvania and I can be a reached at bolussalvage@yahoo.com or bolus towing services at 570 3571464 or 570 3467659, Bob Bolus
Bigdee
Talking about predatory Indiana will give you a 6 points ticket for being in left lane in small town at 12 am at night not intending traffic. All truck drivers should know Indiana doesn’t negotiate tickets for truck drivers they will negotiate tickets for a person that is DUI with a murder but no negotiating with truck drivers at all just keep that in mind. Politicians in Indiana are scandalous towards truck drivers
Hildegard
Lookup “Flash Towing” in Chicago. They actually appear within minutes of a semi tractor getting into an accident, whether the O.O. has a solo incident or with another vehicle. Our owner operator had Flash Towing swoop in and hook up to his semi (with a container attached to it) and quickly drove away with it all…only to leave an address as to where he should pickup his truck (and the container, which was not ours.) Had to get the police involved. The fee Flash Towing gave him was like $18,000. I think they (Flash Towing) had been shut down, and/or operating out of another county. I am sure they have a new name and new location by this time. Driver beware. It happens so fast, in the moment, and for the less experienced owner operators (who may have thought the tow was called for them) their uncertainty and worry is taken advantage of. Thanks for the article.
Joe
Been there done that. We’ve been absolutely crushed on tow bills before. The last time was in PA. The tow company sent out 2 rotators and 3 supervisors just to pick up the rear end of the trailer off a guardrail. Local law enforcement does nothing about it and often seems to be in cahoots with the tow company.