American Property Casualty Insurance Association: Insurers Support Additional Towing Reforms in Chicago

CHICAGO, Illinois, May 8 -- The American Property Casualty Insurance Association issued the following news release:

Robert Passmore, Department Vice President of Auto and Claims at the American Property Casualty Insurance Association (APCIA), urges the City of Chicago's Committee on Public Safety to take aggressive action to combat the issue of rogue tow truck drivers.

After the Committee on Public Safety concluded its hearing, Passmore met with Alderman Gilbert Villegas (36th Ward) to emphasize the need for a towing rotation system to better protect residents from being victimized by rogue tow truck drivers. Alderman Villegas pledged to working closely with insurance industry leaders like the APCIA and the Illinois Insurance Association to work on finding a solution to combat rogue tow truck drivers that incorporates a robust towing rotation system.

Auto insurers often become involved in towing issues when a policyholder's vehicle is not drivable and has to be towed from the scene of an accident or when a vehicle has been stolen and later recovered. While the Chicago City Council took important steps in 2021 to curb the abusive practices of rogue tow truck drivers by adopting a municipal ordinance to put important regulations in place, Passmore emphasized that the ordinance did not go far enough. As a result, insurers are now pushing for a towing rotation system to further reduce abusive towing practices.

"In a survey of APCIA members, Chicago is the city most often cited for abusive towing practices," said Passmore. "When a shady towing company gets a vehicle on its hook, the owner and insurer may face staggering bills and confusing rules to reclaim the vehicle. Outrageous bills from abusive towing companies can drive up out-of-pocket expenses for consumers and impact auto insurance costs. While most towing firms are honest, well-intentioned operators, a few bad players have created widespread problems and cast the entire industry in a negative light."

APCIA is part of a large statewide coalition that includes the Illinois Insurance Association, an organization dedicated to protecting consumers while preserving an open and competitive property and casualty insurance marketplace in Illinois.

"Rogue towing is an outrageous and reprehensible practice that victimizes the most vulnerable in our communities," said Kevin Martin, Executive Director of the Illinois Insurance Association. "The Illinois Insurance Association is proud to support efforts to protect consumers and crack down on shady tow truck operators that prey on the helpless who need help. I urge the Committee on Public Safety to adopt a towing rotation system to combat rogue towers and protect our policyholders."

Scams often occur when a tow truck just shows up at the scene of an accident. Consumers should exercise their rights and options.

Consumers have the following rights:

* You can refuse a tow for any reason.

* You may choose who will tow your vehicle.

* You decide where your vehicle will be towed.

* You should get an itemized statement of the charges.

* You should receive a copy of the towing authorization form.

Steps consumers can take to protect themselves from towing abuses:

* If possible, try to move the vehicle out of traffic and get to a safe place.

* Explore your towing options before you go - in case your vehicle breaks down or needs a tow after you leave home. Keep the contact information for your insurer and roadside assistance handy.

* If you leave your vehicle, remove, or hide personal belongings or items that would be a target for theft, such as electronics, purses, or other valuables.

* Find out if the towing charge is a flat rate or by the mile and inquire about storage and other miscellaneous fees and charges as well as how to gain access to the vehicle once it is towed.

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The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.

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Original text here: https://www.apci.org/media/news-releases/release/80117/