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PCI: Fees Trap Vehicles

Abusive towing and storage practices are a multi-billion-dollar problem

By Robert Passmore | Updated on September 30, 2012
In my 27 years in the insurance industry, I have seen my share of disputes over towing and storage charges. Talk to any experienced agent or claims person and they likely will be able to tell you a story about a “vehicle held hostage” by a towing or storage facility. There is little doubt that these situations compound the aggravation of accident victims and their insurers, but they also impose significant costs. 

The towing and storage of private passenger automobiles is a multi-billion-dollar business. According to the National Highway Traffic Safety Administration, 16 million traffic crashes occur in the U.S. each year. Of these, PCI estimates that nearly 11 million of those vehicles will be towed from the accident scene. With the average crash-related towing and storage fee at $412 per claim ($228 for towing and $185 for storage) in 2010, that translates into a total nationwide towing and storing bill of about $4.5 billion a year for damaged or disabled vehicles.

However, for many years there have been growing concerns related to excessive towing and storage fees generated by the practices of some unscrupulous towing companies. Although most of these firms are honest and well intentioned, some engage in abusive business practices designed to increase towing and storage charges.

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