How to Avoid Predatory Towing Practices

You’re in a car crash. You’re okay, thankfully, but your car is undriveable. When a tow truck operator shows up and offers to help, you gladly accept. You don’t ask about the cost, assuming it will probably run around $100 or $200, the normal price for a tow. When you try to pick up your car, the tow truck company demands thousands of dollars. You’ve just been the victim of predatory towing practices.

What Is Predatory Towing?

According to the National Insurance Crime Bureau (NICB), predatory tow truck operators listen to police scanners or look for accidents. When they spot an accident, they rush to the scene and offer to tow the vehicle. They are not trying to help out. They are essentially taking the vehicle hostage, sometimes charging $10,000 or more and citing vague fees to justify the costs.

These shady towing companies, sometimes called bandit towers, may even try to pose as more legitimate operations. According to Motor1.com, a woman says two towers showed up after she was in a crash, and one of them was wearing a AAA jacket, so she thought they were legitimate. But instead of taking her car to a repair shop as promised, it was taken to an unmarked lot.

Instead of prowling for crashes, some towing scams illegally tow vehicles from private property, According to ABC 7 Eyewitness News, a company in San Francisco has been banned from doing business in the city for five years over allegations of this practice.

How Much Are Tow Trucks Allowed to Charge in Hawaii?

To combat predatory towing practices, Hawaii has a state law that limits how much tow truck operators can charge. According to KHON2, the Tow Truck Bill caps standard towing fees at $75 or $85 if a dolly is used, plus $7.50 per mile and a daily storage fee of $25 for the first seven days and $20 per day after that. Additional fees are allowed under certain circumstances. For example, tow truck companies can add an extra $30 fee if your car is difficult to reach, a $15 fee for tows that occur overnight or on weekends, and a $35 fee if the car is overturned.

The law also requires towing companies to accept cash, credit cards or debit cards. This means towing companies are not allowed to force customers to use on-site ATMs, which may have additional fees.

Under these rules, a tow might cost $210 if a dolly is used and the car is towed 10 miles and stored for two days. It could be a little more if some of the other fees apply, but you should still be paying less than $300 for a basic tow.

How Tow Truck Companies Charge More

Tow truck companies should be adhering to the legal limits on fees. However, some companies may try to get around the rules and tack on extra charges without appropriate approval.

This is what happened to hundreds of vehicle owners in 2023.

According to the Honolulu Department of Customer Services, some tow truck companies incorrectly charged fees of $150 to $4,500. The extra fees are allowed if the towed vehicle needs to be excavated or removed from off-road locations like ravines or streams. However, the Department of Customer Services retains the right to determine reasonable charges in these situations. Between January 2023 and June 2023, 782 invoices included these fees without approval, and the registered vehicle owners were entitled to a refund.

And if the tow truck company is really a scam artist? There’s no guarantee the towers will even try to follow the law.

How to Protect Yourself

• Be wary of towers who show up quickly after a crash. The NICB recommends waiting until law enforcement arrives before agreeing to a tow.
• Know your rights. Read the full text of the Tow Truck Bill, HB 1577.
• Have the number of a trustworthy tow truck company handy. You can also purchase emergency roadside assistance.
• Report shady towers. If you’ve been scammed, or if you think you’ve been charged more than is legally allowed, file a complaint with the Hawaii Department of Commerce and Consumer Affairs.

Do you need roadside assistance? It’s usually available as an add-on to your auto insurance policy. An insurance agent can help you explore your options. Find an agent.