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Victims of car collisions may have more to worry about as insurance companies warn drivers to be aware of a growing scam involving tow truck companies.
Chris Stroisch, the National Insurance Crime Bureau (NICB) vice president of public affairs & communications, shared with Fox News Digital that they are seeing a “significant spike in predatory tolling in the United States, which has increased 89% in the last three years.”
“We’re seeing predatory towing occurring in cities both large and small. So you’re seeing predatory towing occurring in large cities like Chicago, Los Angeles, and Washington, D.C. But you’re also seeing it in small communities like Des Moines, Iowa,” Stroisch said.
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.”
Stepheny Price is a writer for Fox News Digital and Fox Business. She covers topics including missing persons, homicides, national crime cases, illegal immigration, and more. Story tips and ideas can be sent to stepheny.price@fox.com