Growing Concern: American Drivers Face New Threat from Predatory Towing Scams

Car accident victims now confront a serious threat beyond immediate injuries, as insurance companies alert motorists about a rising number of predatory towing scams across the United States.

Chris Stroisch, vice president of public affairs and communications at the National Insurance Crime Bureau (NICB), revealed that there has been an alarming 89% increase in predatory towing incidents over the last three years. This surge is raising red flags among both law enforcement and concerned citizens.

Stroisch noted that these predatory towing practices are occurring not only in major urban centers such as Chicago, Los Angeles, and Washington, D.C. but also in smaller communities like Des Moines, Iowa, showcasing the widespread nature of this issue.

Explaining the motives behind this trend, Stroisch emphasized that predatory tow truck operators are driven by financial gain and will exploit vulnerable situations to maximize profit.

“Unfortunately, we’re witnessing numerous heartbreaking stories from victims,” Stroisch lamented. “Reckless behavior from these predatory towers includes not only aggressive driving but also disputes over territory, leading to violent incidents such as shootings. This escalating situation results in tragic and preventable fatalities.”

The California Department of Insurance has echoed NICB’s warnings, highlighting a specific trend where tow companies are targeting those involved in accidents, seizing their vehicles and demanding exorbitant fees for their release.

Insurance Commissioner Ricardo Lara issued a firm statement, indicating that such scams exploit drivers at their most vulnerable moments—immediately after an accident. “At this critical time, victims should prioritize their safety and follow necessary procedures instead of dealing with the stress of vehicle retrieval,” he said. “Our department is dedicated to protecting Californians from fraud, and educating the public about warning signs is essential.”

A spokesperson from the department detailed two prevalent scams currently affecting drivers. In one scenario, a tow truck driver arrives shortly after an accident, falsely claiming to assist the victim by transporting their vehicle to a repair facility.

The spokesperson elaborated that these aggressive drivers often mislead accident victims by asserting they were dispatched by the insurance company when, in fact, they had not been. Victims then find themselves facing inflated fees to reclaim their vehicles.

“Tow truck drivers frequently arrive at accident scenes and misrepresent their status,” the spokesperson noted. “The suspects will tow the victims’ vehicles under false pretenses, charging outrageous fees for their release.”

The second scam identified involves theft of personal information by perpetrators posing as law enforcement officers or insurance company representatives.

“These criminals might reach out to accident victims, claiming to be from their insurance company and offering to tow their vehicles to a pre-approved body shop,” the spokesperson warned. “Instead, they transport the vehicles under fraudulent terms.”

Stroisch advised consumers to follow two important rules when dealing with unexpected towing situations.

“Should you encounter a tow truck you didn’t request, decline their services,” Stroisch recommended. “If a truck comes unsolicited after an accident, wait for law enforcement to arrive. Once the situation is secure, gather as much information as possible about the tow company before any towing begins.”

The California Department of Insurance has listed several red flags that might indicate a predatory towing scenario. Awareness of these signs is key to safeguarding oneself from becoming a victim.

In response to the escalating concern surrounding these scams, the department has formed three law enforcement task forces in Southern California specifically aimed at tackling organized automobile insurance fraud. These task forces consist of detectives from the California Department of Insurance, the California Highway Patrol, and local district attorneys’ offices.

“These task forces investigate these crimes thoroughly and present cases for prosecution,” the agency explained. “In partnership with other state agencies, including the Bureau of Automotive Repair, we also refer cases for further administrative measures.”

Furthermore, the department actively collaborates with local law enforcement to better identify these scams and regularly releases public service announcements to heighten community awareness.

The Inland Empire Automobile Insurance Fraud Task Force has successfully examined multiple cases, resulting in 16 individuals from Southern California facing criminal charges for fraudulent schemes.

This investigation uncovered a conspiracy involving the creation of fake insurance claims, leading to illegal gains exceeding $216,932. Such schemes often involved holding vehicles hostage and staging collisions.

This particular fraud ring had previously faced charges related to a scheme involving stolen vehicles taken under deceptive premises in San Bernardino County.

Stroisch noted that some of these malicious operators charge rates up to ten times higher than average towing fees, holding vehicles hostage in the process. “Typically, a tow would cost around $109,” he said. “However, we are witnessing sudden spikes in fees, reaching $15,000 to $17,000 that include excessive charges with vague explanations of the costs.”

“If you find yourself in an accident, collect as much detailed information about any towing company involved and ensure that law enforcement verifies their presence first,” Stroisch advised.

Although tow truck scams have existed for years, the California Department of Insurance has reported a significant increase. Reports of this nature surged by over 1,500 since 2023.

While exact statistics concerning this scam type remain elusive, in 2024, the department received approximately 13,870 referrals regarding suspected automobile insurance fraud from various sources, marking an uptick from 2023’s reported figure of 12,363.

The agency strongly urges drivers who believe they might be victimized in such a scenario to confirm the dispatch status of any tow truck with their insurance provider, delaying any signings of documents until consulting relevant parties.

Stroisch pointed out the pervasive gaps in laws and regulations across various cities and states as a critical factor fostering these scams.

“Every state and municipality differs, with some enforcing laws against predatory towing while others lack regulations regarding the licensing of tow truck establishments,” he elaborated. “Implementing protective measures to prevent exploitation must be a collaborative effort among lawmakers.”

Stroisch proposed a ban on unsolicited towing at accident sites as a viable method to combat predatory towing incidents. “Much of this issue stems from overly aggressive towing companies showing up immediately at scenes,” he stated.

“Currently, we monitor 107 proposed bills across 37 states addressing the issue of predatory towing. The sheer volume of legislative activity demonstrates a significant problem that merits immediate attention,” he concluded.