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Protecting your fleet: Navigating the threat of predatory towing in commercial trucking

Predatory towing is a real headache for commercial truck fleets, as it can lead to exorbitant costs, operational delays, and frustration for fleet managers and drivers alike. The lack of regulation in many states has allowed shady towing companies to thrive, preying on vulnerable fleets during roadside breakdowns and accidents. At High Definition Vehicle Insurance (HDVI), we understand these challenges and have expanded our coverage to offer unlimited towing assistance for fleets.

The financial strain of predatory towing

Predatory towing often hits fleets with unexpected, sky-high fees. According to the American Trucking Research Institute, predatory billing was found to be the most common form of predatory towing with excessive rates and unwarranted charges experienced by over 80% of motor carriers from 2021-2023. In fact, ATRI saw that nearly 30% of crash-related tows included some form of predatory billing during that period.

In recent years, excessive towing charges have become a hot-button topic for motor carriers. A 2021 case reported by Transport Topics and highlighted in the ATRI analysis involved a Wisconsin motor carrier that was hit with a $202,000 towing and removal bill after one of its tractor-trailers hauling a truckload of cheese had to be pulled from a ditch on I-64 in central Virginia.

Without regulation, towing companies can pile on hidden charges, and costs rise fast. Delays in handling towing situations can make things worse, causing more downtime, lost revenue, and missed deliveries. In trucking, time is money, so minimizing delays is crucial.

The challenge of no regulation

In many states, there’s little oversight of towing companies, leaving fleets vulnerable to whatever rates the tow operator decides to charge. This lack of regulation calls for fleet managers to be proactive. Timely communication is key – addressing towing quickly helps keep costs from spiraling out of control.

HDVI supports clients by educating them and by helping fleets find reputable towing companies to avoid predatory practices.

Education and prevention: A strong defense

The best defense against predatory towing is education. Fleet managers and drivers need to be well-informed about how to avoid these towing traps. At HDVI, we encourage fleets to train drivers on recognizing and avoiding these tactics.

Having protocols in place, like keeping a vetted list of reliable towing companies, can also protect your fleet from being taken advantage of. Tools like accident preparedness guides and trusted tow company lists give drivers the knowledge they need to steer clear of bad actors.

HDVI’s proactive approach

At HDVI, we go beyond traditional insurance coverage. We provide timely advice, tools, and resources to help fleets handle towing challenges.

Our unlimited commercial auto towing coverage helps clients avoid financial strain and disruption by paying the reasonable cost for towing to the nearest repair facility as well as the storage costs while awaiting repair. The benefit applies to fleets who carry comprehensive, specified causes of loss or collision coverage.

We’re also exploring the use of dispatch companies to streamline towing and reduce costs, ensuring that fleets stay on the road with minimal downtime.

Simple steps to protect your fleet

HDVI has developed a set of concrete steps and checklists that fleets can use to navigate towing situations effectively and minimize exposure to predatory practices. These include:

1. Establish relationships with reputable tow companies: Maintain a vetted list of trusted tow providers and share it with your drivers.
2. Prepare drivers with training and guides: Educate drivers on recognizing predatory towing practices and the steps to take if they are involved in an accident or breakdown. For example, drivers should be trained to request all charges in writing up front and to avoid signing anything from a towing company while on the scene.
3. Timely communication: Ensure swift communication between drivers, fleet managers and HDVI when a towing event occurs to prevent delays and escalating costs.
4. Use dispatch services: Consider using dispatch companies to manage towing events and ensure control over pricing and service quality.

By adopting these strategies and utilizing the resources provided by HDVI, fleets can mitigate the impact of predatory towing, protecting both their bottom line and operational efficiency.

Conclusion

At HDVI, we understand the significant impact that predatory towing can have on commercial truck fleets. Through ongoing education, timely communication, and proactive resource development, we are committed to helping our clients protect themselves from the financial and operational challenges posed by unscrupulous towing companies. With our unique approach to towing and claims handling, we offer fleets the support they need to stay on the road and thrive in today’s competitive environment.