Worst Cities for Towing Increase Costs Associated with Auto Insurance

A new survey released by the Property Casualty Insurers Association of America (PCI) revealed that five cities are worse than others when it comes to aggressive towing practices. it was also revealed that these aggressive towing practices are often associated with drivers paying more in expenses related to auto insurance.

Cities with Worst Towing Practices

According to the PCI, a number of cities are notoriously worse than others when it comes to their towing practices. The survey found that the worst cities in the nation are:

  • Chicago, Ill.
  • Philadelphia, Pa.
  • New York, NY
  • Atlanta, Ga.
  • Houston, Texas

The PCI also listed the five worst states for aggressive towing, which included Illinois, Pennsylvania, New York, New Jersey and California.

Effect on Auto Insurance

Some of the issues arising from aggressive towing practices, according to the survey, include the following:

  • High towing and storage charges and miscellaneous charges like “helper fees” and “wait time fees”
  • Inconsistent and difficult release processes
  • Lack of transparency and communication from towing companies
  • Failed access to vehicle for adjustors

According to the PCI, these unsatisfactory practices by towing companies are not only causing frustration and confusion, but are also increasing out-of-pocket expenses for policy holders as well as charges for insurers, in turn affecting the auto insurance costs consumers pay.

Because the towing companies are often charging monstrous amounts for towing and storage costs (ex. an insurer’s bill for a vehicle in Iowa that was towed seven miles with no storage time was $892, according to the survey) and insurance companies sometimes foot the bill, the costs are trickling down to the policyholder.

The National Insurance Crime Bureau report that claims of inflated towing and storage bills increased by 57 percent since 2009. Unfortunately, it’s difficult to research the reputation of a towing company when in need of immediate help, which is why it’s good to conduct research ahead of time in hopes of working with a reasonable company when you need them most.