Manager hits out at towing fees that are deterring insurers

Towing fees in a particular region have been in the four-digit range in recent months, causing insurers to think twice about covering such fees

Manager hits out at towing fees that are deterring insurers

Motor & Fleet

By Lyle Adriano

A body shop in Gatineau is concerned that it, and every other body shop in the area, has to contend with some of the costliest towing fees in the country.

Lallier Honda manager Guy Lamoureux revealed to CBC that, in one case, an Ottawa couple was billed over $4,000 to have their car towed away from the scene of a collision. Lallier Honda was tapped to take the vehicle in question for repairs but could not pay the upfront cost of the towing service since the couple’s insurer refused to reimburse the fee.

That vehicle was then held hostage by the towing company until the couple could pay. It was only after talks with the aforementioned insurance company that the towing company lowered its fee to about $1,600.

Lamoureux added that had additional fees and taxes applied, the initial towing bill would have reached $5,000.

“The towing bills that we’ve seen in the last three months have been between $1,500 and $5,000,” he said. “It’s been frequent like that.”

Following the incident, Lamoureux lets towing companies and his clients’ insurers sort out the price between them for Ontario vehicles, but he said that this has led to delays in his business. While negotiating with insurers, the towing companies will hold the automobiles in storage, he explained.

“Usually a towing takes half an hour from Ottawa to here,” he said. “The first [dispute over fees] took two weeks before we got the car.”

In another case, Lallier Honda was billed by another towing company – while there was nothing irregular about the nearly $4,000 bill, there was no break down of the costs involved. Despite being assured that the towing firm had negotiated with an insurer, Lamoureux had reservations about accepting such a hefty bill.

Provincial Towing Association of Ontario president Joey Gagne commented that towing companies should be issuing bills that have full breakdowns of any related costs under Ontario’s Consumer Protection Act.

“The dealership is 100% right. They shouldn’t be accepting that invoice because they will get stuck with that if the insurance company comes in,” Gagne told CBC.

Gagne also added that towing companies should work with insurance companies to ensure that the towing services are covered, instead of leaving their clients to fend for themselves.

 

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