One of the biggest challenges we hear when it comes to tow rates are the inconsistencies from state-to-state. These lead to more than an estimated half billion dollars in loss annually for insurance companies. While some states have established posted rates, others have none at all or, they’re ambiguous at best. As a point of reference, Connecticut’s maximum allowable rates for a non-consensual tow (NCT) is $325/hour for heavy duty rigs, with a one-hour minimum, then billed in 15-minute increments thereafter. Georgia and Wyoming, however, have no regulations for NCT, which essentially breeds the mentality of the Wild, Wild, West. Tow situations in these states can be significantly more challenging.
Often times the insurance companies experience sticker shock and don’t realize a solution exists to address what they feel to be an exorbitant invoice resulting from a Non-consensual tow. We’re not suggesting that all tow companies have adapted these predatory practices, but the reality is far too many of them have. In the cases where tow companies do abide by the governing state’s towing rate regulations, there’s no one to police the accuracy of what equipment goes out and how the invoices are potentially baked with equipment and services that were not necessary or in no way justifiable. For example, did you know that a towing service can bill you for deploying a Safety Coordinator/Supervisor at a rate of $150/hour? In some cases, the entire cleanup spans the course of multiple days with every piece of equipment and man-power billed at an hourly rate, whether they were used or not. By the time it’s all said and done, the tow service has racked up an invoice in excess of $50k while holding the precious cargo hostage until the invoice is paid in full, leaving the insurance companies at their mercy.
The list of equipment alone can be astonishing; from forklifts to dump trucks there’s no true governing authority to challenge the validity of what’s sent to a scene and that’s where we come in. MCB will audit invoices, verify whether regulated rates are being assessed and will work to reduce your invoice as well as negotiate the swift release of all equipment.
Feel free to comment and join the discussion.
If you’d like to learn more about Non-Consensual Towing call Morgan, Cohen & Bach at 520-442-1303. We'd love to hear from you.
Often times the insurance companies experience sticker shock and don’t realize a solution exists to address what they feel to be an exorbitant invoice resulting from a Non-consensual tow. We’re not suggesting that all tow companies have adapted these predatory practices, but the reality is far too many of them have. In the cases where tow companies do abide by the governing state’s towing rate regulations, there’s no one to police the accuracy of what equipment goes out and how the invoices are potentially baked with equipment and services that were not necessary or in no way justifiable. For example, did you know that a towing service can bill you for deploying a Safety Coordinator/Supervisor at a rate of $150/hour? In some cases, the entire cleanup spans the course of multiple days with every piece of equipment and man-power billed at an hourly rate, whether they were used or not. By the time it’s all said and done, the tow service has racked up an invoice in excess of $50k while holding the precious cargo hostage until the invoice is paid in full, leaving the insurance companies at their mercy.
The list of equipment alone can be astonishing; from forklifts to dump trucks there’s no true governing authority to challenge the validity of what’s sent to a scene and that’s where we come in. MCB will audit invoices, verify whether regulated rates are being assessed and will work to reduce your invoice as well as negotiate the swift release of all equipment.
Feel free to comment and join the discussion.
If you’d like to learn more about Non-Consensual Towing call Morgan, Cohen & Bach at 520-442-1303. We'd love to hear from you.
