Predatory towing remains a costly issue

November 30, 2023

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A new report released by the American Transportation Research Institute examining predatory heavy-duty towing reinforced just how vast the issue is.

OOIDA was among those contributing data for this study conducted to “improve the relationship between the towing and trucking industries,” an ATRI news release said.

Lewie Pugh, executive director of OOIDA, told FreightWaves that issues of non-consensual towing are often the result of towing companies being contacted by highway patrol officers concerned with clearing a crash as quickly as possible.

“We don’t have a problem with that; the problem we do have is that some towing companies will take advantage of truckers when someone else calls for the service,” Pugh said. “If there’s no regulation, like in most states, to address unscrupulous towing companies, it’s an open checkbook. We’ve seen bills go well into six figures. It’s a huge problem for the industry that kind of flies under the radar.”

📑ICYMI from @JohnAGallagher1 in @FreightWaves

🗨️ “Some towing companies will take advantage of #truckers when someone else calls for the service, because in many cases there are no state laws or agencies that oversee that.” – @Lewie_Pugh https://t.co/PERjWLuHqh

— Owner-Operator Independent Drivers Association (@OOIDA) November 30, 2023

A nationwide problem

The ATRI study revealed that while predatory towing is more prevalent in some states than others, it’s an issue no matter the region.

According to the research, nearly 83% of motor carriers regardless of location have been billed excessive rates. Rates were considered to exceed the national median by 50%. In addition, 82% of motor carriers said they have experienced unwarranted extra charges. Excessive daily storage rates and vehicle-release delays or access issues occurred at rates higher than 70%, according to this study’s research.

Responding motor carriers also said they were able to use a towing company of their choice in only 10% of towaway crashes, and 36% of carriers never even had an opportunity to select a towing company following a crash.

An independent analysis of motor carrier towing invoices between 2021-2023 revealed that 30% of crash-related tows resulted in some form of predatory billing.

Looking at the research by state, California has the highest number of predatory towing incidents (6.98%) followed by Texas and Indiana. In terms of predatory towing relative to mileage, Indiana is the worst state, followed by New Jersey and Mississippi.

“Predatory towing is a costly issue for motor carriers as well as compliant towing companies, and it has been overlooked for too long,” Shawn R. Brown, Cargo Transporters’ vice president of safety, said in a statement. “With reliable data analysis and a thorough regulatory review, ATRI’s report sheds light on the sources of the problem and paths forward for addressing it by both regulators and trucking fleets.”

The full study is available on the ATRI website. LL