APCIA urges action on rogue tow truck drivers in Chicago

APCIA urges action on rogue tow truck drivers in Chicago | Insurance Business America

Motor & Fleet

APCIA urges action on rogue tow truck drivers in Chicago

Association also voices support for additional towing reforms

Motor & Fleet

By
Kenneth Araullo

Robert Passmore, department vice president of auto and claims at the American Property Casualty Insurance Association (APCIA), has advocated for decisive measures by the City of Chicago’s Committee on Public Safety to address the problem of rogue tow truck operators.

Following the committee’s hearing, Passmore discussed with Alderman Gilbert Villegas of the 36th Ward the establishment of a towing rotation system to shield residents from predatory towing practices.

Alderman Villegas has committed to collaborating with insurance industry stakeholders such as APCIA and the Illinois Insurance Association to develop a solution that includes a comprehensive towing rotation system to combat rogue tow truck activities.

The issue of rogue towing affects auto insurers when a vehicle needs towing after an accident or when a stolen vehicle is recovered. Although the Chicago City Council implemented a municipal ordinance in 2021 to regulate tow truck operations, Passmore emphasized that the measures were insufficient.

The insurance industry is now advocating for a towing rotation system to further mitigate exploitative towing practices.

“In a survey of APCIA members, Chicago is the city most often cited for abusive towing practices. When a shady towing company gets a vehicle on its hook, the owner and insurer may face staggering bills and confusing rules to reclaim the vehicle,” Passmore said.

“Outrageous bills from abusive towing companies can drive up out-of-pocket expenses for consumers and impact auto insurance costs,” he said. “While most towing firms are honest, well-intentioned operators, a few bad players have created widespread problems and cast the entire industry in a negative light.”

The APCIA is part of a broad statewide coalition that includes the Illinois Insurance Association, which is committed to protecting consumers while maintaining a competitive property and casualty insurance market in Illinois.

Kevin Martin, executive director of the Illinois Insurance Association, condemned rogue towing practices and called for more action against these issues.

“Rogue towing is an outrageous and reprehensible practice that victimizes the most vulnerable in our communities. The Illinois Insurance Association is proud to support efforts to protect consumers and crack down on shady tow truck operators that prey on the helpless who need help. I urge the Committee on Public Safety to adopt a towing rotation system to combat rogue towers and protect our policyholders,” Martin said.

What are your thoughts on this story? Please feel free to share your comments below.