7 Ways to Avoid Predatory Towing Companies

This post is part of a series sponsored by IAT Insurance Group.

Companies that engage in disreputable towing — sometimes referred to as predatory towing — practices are preying on trucks in areas known to have an elevated frequency of crashes. They may even use nefarious means to contribute to likelihood of an accident. This is the latest scam affecting long haul and moving and storage trucking.

Case in point: A driver recently incurred significant damage when attempting to drive their tractor trailer under a Chicago bridge, whose “low bridge” sign had been suspiciously removed. As soon as the accident happened, an unsolicited tow truck appeared. In the driver’s distress and haste to rectify the situation as quickly as possible, the driver accepted towing services without a quote. Soon after, the moving and storage company received a bill for the $75,000 towing, a service that should have cost around $2,500.^[1]

While predatory towing scams like this and others are occurring around the country and raising concerns amongst fleets,^[2] they have been particularly prominent in Chicago. So much so that Chicago’s City Council’s Committee on License and Consumer Protection passed an ordinance calling on the city to establish a license for tow truck operators to corral rogue tow truck drivers who rush to accident scenes, snare damaged vehicles and hold them hostage until rattled truckers pay exorbitant fees.^[3]

Fleets and truckers must protect themselves against tow truck companies that run illegal or unethical operations. The following best practices offer key guidance for your fleet.

Even with all these precautions in place, towing is expensive. Factors like the weight and size of the truck and the distance to be towed legitimately impact the price. Consequently, fleets should also not assume they are dealing with a nefarious towing company if they are looking at an expensive quote.

Due to the rise in these scenarios, the American Transportation Research Institute is asking motor carriers and drivers to participate in data collection on the impact of predatory towing. Find the link to the short survey here.

Have a question on how to mitigate risk? Email losscontroldirect@iatinsurance.com for a chance to see your question answered in a future blog.

By Chris Parker

[1] Costhack “How Much Does It Cost To Tow A Semi-Truck?”

[2] American Trucking Associations “The American Trucking Association, American Property Casualty Insurance Association, & the Coalition Against Insurance Fraud join forces to tackle towing fraud across America,” April 5, 2021.

[3] Chicago Sun-Times “Aldermen endorse effort to corral ‘Wild West’ of rogue tow truck drivers,” May 19, 2021.

[4] FreightWaves “Route planning tool helps drivers overcome daily frustrations,” April 27, 2022.