How Ontario is Cracking Down on the Tow Truck Industry
No one wants to call a tow truck. While in the past it meant that we have something wrong with our vehicle, today it also means that it’s open season on price gauging and towing scams.
With winter on the way it’s important that you not only get your car ready for the winter driving season, it’s also important you understand the towing scams that exist. Winter is the busy season for accidents and there will be no shortage of tow trucks out on the roads.
Unfortunately, rather than offering a helping hand in a time of need, some drivers and companies are gouging people. And what can you do? You need to get your car out of the ditch or towed to the mechanic if it’s damaged in a crash. Once they have your car hooked up, you’re hooked!
The good news is Ontario is taking steps to crack down on unethical tow truck operators. Proposed legislation takes aim at the industry and outlines a new set of rules to help eliminate price gouging. The provincial government is also hoping the proposed bill will help to reduce the instances of insurance fraud, helping to further reduce car insurance rates for Ontario drivers.
“A number of serious concerns have been raised about the industry by consumers and by groups such as the Insurance Bureau of Canada,” says Consumer Services Minister Tracy MacCharles
“It will give stronger protection for people who have their vehicle towed or stored,” MacCharles said. “It’s going to help with road safety and it’s going to help us drive down insurance costs by driving down fraud.”
Towing Industry and Insurance Fraud
Pricing gouging and unethical tow operators have an impact on the cost of insurance rates in the province. There have been many cases of tow truck drivers working with auto body shops, vehicle storage facilities and other companies to gouge drivers. The legislation can also be view as a means to prevent these actions and is a larger plan to crack down on auto insurance fraud.
Also see – What You Need to Know About Auto Insurance and Fraud
About the Proposed Legislation
There are five main components to the proposed laws that will help to prevent price gouging and ensure drivers are getting honest services from tow truck operators. Under the new laws drivers will be required to:
- Obtain permission from consumers before charging for towing and storage services.
- Post prices prominently and other information, including the operator’s name and contact information.
- Accept credit card payments.
- Provide an itemized invoice listing services provided and the total cost.
- Tow truck drivers would also be required to register with the government
These proposed changes are in response to many complaints from drivers about unexplained fees, excessive service fees, and questionable actions by tow truck drivers.
Currently, there are only 17 cities in the province that require tow trucks to be licensed and the intention of the proposed bill is to make licensing a province wide standard.
Tips to Protect from Tow Truck Scams
The Financial Services Commission of Ontario recommends the following tips to avoid being scammed by tow truck operators:
- Make sure the tow truck has a municipal license number
- Check to see if the truck is affiliated with a reputable company or organization
- Carefully read everything before signing anything
- If possible, call your insurance company and ask for a recommendation for where to take your vehicle to be repaired.
- Look for obvious clues such as pushy drivers, strong recommendations, or unsolicited suggestions for repair shops
Have you ever been a victim of a tow truck scam? What are your experiences with tow truck drivers? Positive or negative?