When winter arrives in Canada, so do slippery roads and accidents. A growing problem during accident season is tow truck drivers who receive kickbacks from auto body shops.
After being rear-ended on the highway in Mississauga, Ontario, Sahil Mulla was given paperwork by his tow truck driver. Mulla signed, but little did he know that by signing he had agreed to let the auto body shop fix his car and, in order to get it back, he would have to pay $8,000 in storage fees.
Storage fees aren’t the only issue, however. Many tow truck drivers are paid hundreds of dollars by body shops to secure cars after an accident. These “accident chasers” compete to get to the car first and have been known to unnecessarily tow cars that are only slightly damaged. Once a vehicle is towed, the body shop may refuse to release the vehicle until storage, administrative, and other unapproved service and repair fees are paid. These amounts often reach thousands of dollars. Even if an insurance company pays these costs, it can result in high premiums.
Luckily, new rules are expected to be issued requiring tow trucks to reveal any business relationships with body shops to consumers. Body shops will also be required to disclose accurate repair estimates in writing, provide invoices to customers, and ensure that repairs do not exceed the estimated amount by more than 10 percent.
Despite these laws, there is concern that they will be difficult to enforce.
You can protect yourself after an accident that requires towing by taking a few simple steps. Request that the tow truck driver provide you with pricing or give police a specific location where you’d like your car to be towed to make sure you don’t get ripped off.
You can learn more about new legislation by clicking here to read the full CBC News article. If you have experienced an accident and believe you have been misled by a tow truck driver, it’s best to consult with a lawyer to ensure that you understand your rights. For more information, visit our car accident section.
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