Alert Issued to American Drivers on How to Identify and Avoid ‘Predatory Towing’ Scams Nationwide

Individuals involved in car accidents may need to prepare for another concern, as insurance firms caution drivers about a rising scam linked to tow truck services.

Chris Stroisch, who serves as the vice president of public affairs & communications at the National Insurance Crime Bureau (NICB), told Fox News Digital about a “noteworthy rise in predatory towing across the United States, which has surged by 89% over the past three years.”

“We’re witnessing predatory towing in both metropolitan and smaller cities. This includes major cities like Chicago, Los Angeles, and Washington, D.C., as well as smaller towns such as Des Moines, Iowa,” Stroisch explained.

Stroisch explained that these predatory towers are “following the money” and will operate wherever they can make the most profit.

“If you’re in an accident, get as much information as you can about a tow truck company and wait for law enforcement to arrive first.” 

While tow truck scams are nothing new, the California Department of Insurance said they are on the rise, increasing by over 1,500 reports since 2023.

“We do not have stats specific to this type of scam, but in 2024, CDI received 13,870 referrals of suspected automobile insurance fraud from insurance companies, government agencies and the public, which increased from 2023, where we received 12,363,” the department shared.

The department said it is urging any drivers that believe they may be in a situation like this to verify the tow truck with their insurance company or wait for CHP to verify the tow truck was dispatched by CHP, adding to also not sign any documents until you have talked to their insurance company.

Stroisch said one of the biggest things that the bureau is seeing right now is the lack of laws and the lack of policies in some cities and states. 

“Every state, every municipality is different, and some states have laws against predatory towing. They have laws that require licensing of tow truck companies. They have laws that require transparency around fee schedules, but there are many cities and states that don’t,” Stroisch explained. “So I think that from an NICB standpoint, we would recommend all lawmakers at every level, work together to put measures in place to help prevent this.” 

Stroisch suggested that banning accident scene solicitations is one example of how predatory towing can be thwarted. 

“That’s where a lot of this is occurring. These tow truck companies that just show up on scene, so ban accident scene solicitation in the first place. So we are really encouraging lawmakers to work together to pass legislation.

“We are currently monitoring 107 different bills in 37 states that are all tied to predatory towing. So to have that many bills that are in some stage, it’s just showing the problem that we’re seeing right now.”