Know Before You Tow!

Tow truck scams have grown to become a major issue across the country. The National Insurance Crime Bureau (NICB) has made it its mission to educate consumers about the unethical and illegal practices among some rogue towing/storage operators, as well as repair shops, around the nation. 

Silver SUV being towed

NICB is working with a number of state legislatures to help crack down on illegal towing fees and practices. Here is a list of some of the most recent legislative activity involving towing laws across the country: 

Mississippi – Senate Bill 2635 – June 2024  

  • Creates commercial vehicle towing advisory committee that establishes regulations for nonconsensual and commercial towing. 
  • Requires towing and recovery services that have performed a nonconsensual tow or commercial tow to allow the vehicle owner reasonable access to the commercial vehicle and collect personal property. 
  • Provide procedures for what towing and recovery services must do before performing a nonconsensual tow. 
  • Permits law enforcement to establish a tow rotation list for commercial towing. 
  • Requires the Advisory Committee to establish disciplinary procedures for violations 
  • Requires the Advisory Committee to establish maximum towing and storage rates for nonconsensual tows—which include police initiative tows for commercial vehicles.  

Virginia – House Bill 959 – April 2024  

  • Planning Districts 8 and 16 require written authorization of the owner of the property from which the vehicle is being towed. 
  • An improper towing penalty will be applied to tow truck drivers and recovery operators who remove a vehicle without the consent of the owner. 

Colorado – House Bill 1051 – May 2024  

  • The commission may deny applications for, suspend, or revoke towing permits of an individual who has been convicted of a felony or towing-related offense. 
  • A towing carrier shall not tow a vehicle from private property without consent unless the carrier has received documented permission. 
  • Towing carriers must maintain a clearly visible sign. 

Florida – House Bill 179 — July 2024  

  • Counties, cities, and the Florida Highway Patrol (FHP) must set maximum rates for towing and related fees. 
  • An individual who disputes the appropriateness of a tow or fees charged can post a bond to retrieve their vehicle without having to file a lawsuit. 
  • Towing-storage operators are required to maintain a rate sheet listing posted in their place of business that includes all fees for the recovery, removal, or storage of a vehicle. 

Kentucky – House Bill 167 – April 2024 

  • Requires towing companies to submit rate schedules to local law enforcement agencies in the company’s service area. 
  • Local law enforcement agencies are directed to remove companies that do not comply with these requirements from their wrecker log for six months and allows Transportation Cabinet to promote administrative regulations to set penalties for towing violations.

Learn more about predatory towing practices and NICB efforts with member companies, law enforcement and state legislatures. Check our upcoming training and conferences to learn about trending fraud.

If you have any information concerning towing scams, you can report it anonymously by calling 800-TEL-NICB (800-835-6422) or by submitting a form.  

Anyone with information concerning insurance fraud or vehicle theft can report it by calling toll-free 800.TEL.NICB (800.835.6422) or submitting a form on our website.

About the National Insurance Crime Bureau: Headquartered in Oak Brook, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime through Intelligence, Analytics, and Operations; Education and Crime Prevention; and Strategy, Policy, and Advocacy. The NICB is supported by more than 1,200 property-casualty insurers, self-insureds, rental car, vehicle finance, and auto auctions. To learn more, visit www.nicb.org.