Predatory towing is ‘a crime we all pay for.’ Here’s how to avoid it.

The PA Insurance Fraud Prevention Authority says price gouging in the towing industry is not limited to Philly and offer tips to avoid being taken advantage of.

A former Recovery Unit 1 LLC customer said she was billed $2,800 for a tow and two nights of storage after she was in an accident. She was told fees included cleanup of her car, which she said was returned the exact way it had been during the accident and the company let water get through the window.Read moreCourtesy of Yuliia

by Ximena Conde

Published Jan. 22, 2024, 5:46 a.m. ET

It’s a Philly thing.

That’s how several local readers responded to an Inquirer story looking into the experiences of two West Philly residents who say they were slapped with exorbitant towing bills after they signed their cars away in the hazy aftermath of a crash.

Not so, said Chris Sloan, executive director of the PA Insurance Fraud Prevention Authority. Established in 1994, the authority distributes grants to law enforcement so that agencies can investigate and prosecute insurance fraud. It also educates consumers on how to avoid being trapped in questionable agreements.

“It’s not a victimless crime,” said Sloan of predatory towing. “It’s a crime we all pay for through higher insurance premiums.”

Sloan shared some tips on what drivers can do if they find themselves in the unfortunate position of being in a car crash and needing a tow, and what the state could do to tamp down on exorbitant bills that may be operating in gray areas of the law. Here’s what you need to know.

An $11,000 tow?

The Insurance Fraud Prevention Authority has found troublesome towing companies throughout the state.

One Pittsburgh towing company charged a customer more than $11,000 for towing, eight days of storage, and administrative fees.

When KDKA-TV in Pittsburgh reported about that towing company in November, local police told the CBS affiliate there was nothing they could do without better regulations.

In Philadelphia, certain regulations exist to discourage wreck chasing. Under a rotational towing program, police dispatch can call a participating company to the scene of a crash. The businesses in the program agree to charge a maximum towing fee of $215 and a daily storage fee of $25, which is prorated, for cars under 11,000 pounds.

Still, some readers told The Inquirer they were met with multiple tow companies after crashes and they didn’t know which one was city-approved. Under the program guidelines, drivers can ask police at the scene to point out the truck sent by the city. Yet a gap in the system occurs when no injuries are reported and therefore no police officers are dispatched to the scene.

What to do if you need a tow?

Know what your insurance plan offers before you’re in a crash. Sloan said many insurers and car manufacturers offer roadside assistance. It may take these companies longer to get to the scene, but if your vehicle isn’t obstructing traffic, the wait can save drivers thousands in the long run.

But say you have to go with a tow on the spot. One of the biggest pieces of advice is not to sign any towing agreement if the prices aren’t laid out. Towers may assure drivers that insurance will cover the costs, but that’s not a guarantee, and Sloan said drivers are on the hook once the dotted line is signed.

The tow slip should also have the driver’s information, car, and crash details, as well as business information.

What to do if you’re slapped with a massive towing bill?

Even the most experienced drivers may miss a red flag after a crash and sign a shady towing agreement, said Sloan.

In Pennsylvania, if a driver thinks they’ve been taken advantage of, they can file a complaint at the bureau of consumer protection at the attorney general’s office.

Philly drivers can also file complaints online through AutoReturn, a third party used by the city that aims to streamline the towing process for police, towing companies, and the city.

A two-person Tow Task Force, which launched July 2023 in Philly through a fraud prevention authority grant, is also investigating companies that may be violating towing ordinances, said Sloan. The task force has cases forwarded to them by police and insurers. In the fourth quarter of 2023, Sloan said, the unit investigated more than 50 cases, including ones where the tow company was in the right.

Yet to put a stop to companies that are holding cars “hostage” after crashes, Sloan said, legislative action is needed in Harrisburg regulating how much businesses can charge.

“Strong legislation and regulations throughout the Commonwealth of Pennsylvania could really help protect consumers and insurance companies,” said Sloan. “And it would benefit the legitimate, good tow companies out there that we need.”