Protecting yourself against tow truck fraud

Posted by Steers Blogging Team on Nov 17, 2020 7:28:23 PM

Protecting yourself against tow truck fraud

Earlier this year, the Ontario government announced they are creating a task force to regulate the towing industry to help vulnerable drivers who are being taken advantage of by fraudulent tow truck drivers, repair shops and rental companies.

Fraudulent tow truck drivers will use high-pressure tactics to try to get vulnerable motorists to do business with them. They do this because competition between tow truck companies has become stiffer in recent years.

In this CBC article one type of tow driver police make note of is the "chaser." These are tow truck drivers who listen to radio scanners and rush to accidents and wrecks, preying on unsuspecting people who need roadside assistance.

One of their fraudulent tactics happens when a vulnerable motorist is asked to sign forms which are actually work orders. The tow truck hauls the vehicle back to the shop and holds it there until they get paid. The price can be hundreds more than the usual cost. If the driver and their insurance company don't pay, the tow shop sells the car.

In an effort to help drivers protect themselves following an accident, here are some tips on how to deal with tow truck operators:

  • Record the details of the accident, as well as the other vehicles involved, the name of the tow truck company and driver, as well as any affiliated companies they recommend.
  • Do not sign any blank work order forms. Always read the complete terms and conditions on documents to ensure you understand what you’re authorizing.
  • Tell the tow truck driver to take your car to your regular repair shop or one recommended by your insurance company or broker.
  • Call the police if someone is hurt or if someone may have broken the law (such as, if a motorist thinks they may be a victim of a staged collision).
  • Remember, you have the right to decide who can tow your vehicle to what location.

In addition to these tips, make sure your insurance policy includes roadside assistance coverage and know what the limits are. Ask if your insurance covers towing and how much is covered.  OTC works with many different auto insurers to get clients the best possible price for the coverage they desire. To learn more, get started with a free quote.

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Topics: Auto Insurance

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