Truck insurance coalition spotlights need for Maryland towing reform

Five organizations – the Owner-Operator Independent Drivers Association, the Coalition Against Insurance Fraud, American Trucking Associations, Maryland Motor Truck Association and American Property Casualty Insurance Association – have formed a coalition to face this growing problem. They say it is not only fraudulent but continues to disrupt the supply chain.

In a letter to Maryland lawmakers, the coalition highlights the issue of “nonconsensual tows” and how the lack of consumer protection from towing companies continues to make a bad situation even worse.

“One of the problems in Maryland is that there are no rules that prevent towing companies from charging whatever they want,” Mike Matousek, OOIDA director of state legislative affairs, said in a coalition news release. “There is also no viable complaint process for truck drivers caught up in this mess.”

The coalition’s letter also points to the serious problem of insurance fraud throughout the country.

“When towing companies submit an invoice that includes charges for equipment or manpower that was never on scene, that’s insurance fraud,” Matthew Smith, executive director of the Coalition Against Insurance Fraud, said in the news release. “This is not a victimless crime.”

After attempting other avenues, the coalition supports HB 487 as the most practical solution.

“It is not unreasonable to think the towing industry should have to play by some rules, and we think it can be done in a way that would minimize the impact of towing companies that do things the right way,” Robert Passmore, vice president of auto and claims policy at the American Property Casualty Insurance Association, said in the news release.

This issue is not unique to Maryland.

However, now that states are able to directly address this problem, the coalition believes there’s no legitimate reason not to.

“A few years ago, Congress gave states clear authority to fix this as they see fit, and we intend to work with states to use that authority,” John Lynch, senior vice president of federation relations and industry affairs at the American Trucking Associations, said. LL