LEGAL • Oct 14, 2024
Predatory Towing: A Growing Threat to Trucking Operations
4 minutes read
https://blog.driverseo.com/predatory-towing-a-growing-threat-to-trucking-operations-511185bf
Copied
In the trucking industry, accidents are costly enough on their own, but predatory towing practices can turn an already challenging situation into a financial nightmare. Towing companies, particularly those involved in non-consensual tows, often exploit carriers by overcharging for services, delaying vehicle releases, and stacking storage fees. This creates significant financial strain, especially for smaller carriers, and disrupts operations at a time when the industry is already grappling with tight margins.
Here’s a closer look at how predatory towing impacts carriers and what steps you can take to mitigate these risks.
What is Predatory Towing?
Predatory towing refers to excessive and unfair towing practices where service providers take advantage of carriers in vulnerable situations. This is especially common in non-consensual tows—such as those ordered by law enforcement after an accident—where the carrier has no control over which towing company is called.
Common predatory practices include:
- Over-deployment of equipment: Sending more vehicles and manpower than needed and charging inflated rates.
- Excessive storage fees: Delaying the release of equipment to accumulate daily storage charges.
- Refusing cargo release: Holding cargo as leverage to force carriers to pay inflated fees.
Why Predatory Towing is a Problem for Carriers
-
High Upfront Costs:
Towing companies may demand $6,000 or more upfront, which many carriers cannot pay immediately due to tight cash flows. Without payment, the vehicle sits in storage, accumulating additional fees.
-
Insurance Delays:
The insurance claims process can take 48 hours just to assign an adjuster and weeks for a full inspection, during which time storage costs soar. This puts carriers in a difficult position, forcing them to pay out of pocket to prevent further losses.
-
Cargo at Risk:
Cargo can be damaged during towing or improper storage, adding another layer of financial risk. Delays in cargo release also damage client relationships and affect future business.
How to Protect Your Fleet from Predatory Towing
-
Pre-Arrange Storage Locations and Towing Plans:
Before an accident happens, establish relationships with reputable towing companies or identify designated storage facilities. If possible, instruct drivers to direct the tow truck to these locations instead of allowing it to go to the towing company’s yard.
-
Move Fast After an Accident:
- Start the insurance claim immediately to ensure adjusters get involved early and authorize payments quickly.
- Negotiate for cargo release: Many towing companies are open to separate negotiations for cargo, allowing it to be moved and delivered while the equipment remains in storage.
-
Get Ahead of Storage Fees:
The biggest costs in towing often come from daily storage fees, not the initial tow. If possible, pay the upfront fee to move your truck and trailer to a cheaper facility.
-
Document Everything at the Scene:
Drivers should record the condition of the cargo, equipment, and other vehicles involved, noting license plates and taking photos. This documentation helps in disputing inflated towing bills and strengthens your case during the claim process.
Push for State-Level Regulation
Some states, such as Maryland and Colorado, have already implemented reforms to limit towing fees and provide carriers with more control over towing arrangements. However, regulations vary, and many states still allow police-ordered tows without carrier consent. As an industry, carriers must advocate for more consistent rules to protect themselves from these practices.
Conclusion: Be Proactive, Not Reactive
Predatory towing is a growing issue that can significantly impact your bottom line if not managed carefully. Planning ahead, acting quickly, and maintaining control over storage decisions are essential to minimizing costs. With Drive Solutions, you’ll have access to tools that streamline accident management, helping you move faster, manage claims efficiently, and reduce financial exposure to predatory towing practices.
The key is to stay ahead of the game—because when towing companies exploit the system, it’s your business that suffers.