Changes to the city ordinance requiring additional licensing to improve towing safety have been passed by the Chicago City Council, the National Insurance Crime Bureau reported.
The NICB supported an amendment to city ordinance that would require additional licensing to improve safety. The license will allow tow operators to tow, relocate and store damaged or disabled vehicles from public areas, such as accident scenes.
“We are grateful the Chicago City Council voted and passed these changes to the ordinance ultimately safeguarding Chicagoans from years of unsafe and unscrupulous towing service practices,” Tim Lynch, senior director of government affairs with the National Insurance Crime Bureau said in a media release. “We are especially thankful to Alderman Gil Villegas for his untiring leadership guiding these changes within the City Council improving safety and ending the schemes responsible for taking thousands of dollars from the pockets of all of our neighbors here in Chicago.”
According to data received by members of the National Insurance Crime Bureau, Chicago ranks as the second most affected major city in the nation for towing abuse. Furthermore, a survey of several insurance companies identified Chicago as one of the “most problematic” cities nationally for towing-related abuses.
The NICB says the city of Philadelphia previously implemented towing regulations which ultimately safeguarded tow customers and reduced the potential for insurance fraud. California also has passed regulations prohibiting tow companies from stopping at an accident scene unless called by the vehicle owner or law enforcement and requires all tow companies provide written estimates of all charges to the vehicle operator before proceeding with a tow. Arizona has similar laws and Ohio allows civil action by insurers against a towing company operator to recover a vehicle, according to the NICB.
In Chicago, a typical tow should cost a vehicle owner less than $400, the NICB says. However, towing bills in the city range from $3,000 to $5,000 due to extreme towing and storage fees, according to the NICB. These fees could mean once a victim’s car is towed away, they may not be able to afford to get it back.
Topics Legislation
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