If they tow your car in Massachusetts, you’ll now be paying more

June 29--The new maximum rate is $108 for involuntary towing of motor vehicles, up from $90, which according to opponents will trigger an insurance premium increase for millions of Massachusetts drivers.

The total amount you end up paying after an involuntary tow may be higher than the rate.

That's because tow companies can impose additional charges, depending on the circumstances of each individual tow, according to the Massachusetts Department of Public Utilities, the state agency that set the new maximum tow rate. MassLive.com obtained the document outlining the charges.

The maximum tow rate increase goes into effect Friday, June 30.

The last increase in the maximum tow rate came in 2004, up to $90 from $75.

The department establishes maximum rates for towing and transportation of motor vehicles ordered by police and other public authorities, as well as for trespassing or involuntary tows.

There is also a fuel price surcharge when the price of diesel hits $2.622 per gallon or higher. When that's triggered, a formula determines the charge, which can change week to week.

Tow companies are also allowed to charge fees for things that state Department of Public Utilities doesn't regulate, such as storage.

The Automobile Insurers Bureau opposed the increases, saying any increases in charges related to involuntary towing would increase insurance premiums for 4 million Massachusetts drivers.

The Statewide Towing Association, which represents 300 tow companies, asked for the increase in maximum rates and charges.

In pushing for the 20 percent increase to $108, the association argued that it was losing money on the average regulated involuntary tow in Massachusetts.

The Automobile Insurers Bureau said the association's analysis is faulty, and the average loss amounts to a few dollars.

The Massachusetts Insurance Federation, Arbella Mutual Insurance Company, MAPHRE Insurance and Allstate Insurance Company also opposed the increases. "Allstate separately argues that tow carriers sometimes include egregious charges when performing involuntary tows," said the summary of arguments written by the Department of Public Utilities.

The Department of Public Utilities held a public hearing in Boston on the issue in March 2017.

Massachusetts Senate President Stanley Rosenberg, D-Amherst, and Sen. Michael Moore, D-Millbury, backed the increases. "According to the Senators, the current rates for involuntary towing have not been changed since 2004, despite cost increases faced by tow operators," the DPU summary said.

In its order, the department wrote, "While the Department sets maximum rates allowed to be charged for towing services, tow companies are encouraged to charge a lower rate."

The department added, "For example, in many municipalities, police-ordered towing is subject to a contract rate based on bids, or on a negotiated rate between the municipality and the tow operator doing business in a municipality."

Increasing the basic tow rate by 20 percent to $108 is "reasonable and appropriate and [will] result in just and reasonable rates, as it would enable tow operators, operating under efficient management, to earn a reasonable amount for towing services," the department said in its order.

The order is available below.

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