CHICAGO (CBS) — Insurance companies are taking a stand against rogue towing services that they say are taking advantage of their customers. A group is on the move to find a solution.
CBS Chicago has been reporting on these tow truck companies for years, and insurance companies have also been hearing about this problem for some time.
“This probably goes back 10 years. I think it comes from an inability to determine what would be the best way to implement stricter regulations.”
Kevin Martin is a director of the Illinois Insurance Association and represents companies such as Allstate and State Farm.
He is trying to get the state and the city to take decisive action to fix the problem of towing companies registering and legally applying for their license through the state, but then in bad faith impounding people’s cars and creating a situation where the driver feels vulnerable because they are involved in a car accident.
He said it has now become a priority because…
“I think this has happened mainly in the last two or three years because this has happened to legislators who have worked in the General Assembly,” Martin said.
The companies hold on to the vehicles and charge exorbitant amounts to get them back.
“This not only has consequences for people who are insured, but unfortunately some people do not have towing insurance,” says Martin.
A number of insurance companies testified at City Hall in May about the ongoing problem, working on new ideas and drawing inspiration from cities like Philadelphia, where they operate what they call a “rotary tow system.”
“There should be a towing list of people who are legitimate towing companies. If you’re not on that list, you can’t be called,” Martin said.
Alderman Gilbert Villegas plans to introduce a new city ordinance in the coming weeks to clamp down on rogue towing companies, with the goal of having those solutions adopted by the end of the year.
