Predatory Towing is Turning Routine Truck Accidents into Six-Figure Financial Events

Predatory Towing is Turning Routine Truck Accidents into Six-Figure Financial Events

Matt Herr

7 min read

A rollover on the interstate at 3:00 a.m. is already a bad day. But for a growing number of motor carriers, even worse financial damage comes from the tow bill that follows.

Stephen Brasher, Travelers Inland Marine Claim Unit Manager, joined FreightWaves’ What the Truck?! with host Malcolm Harris to break down how predatory towing practices are draining carriers of tens (and sometimes hundreds) of thousands of dollars per incident.

Brasher says the tow operators hold nearly all the leverage, invoices are routinely inflated, and motor carriers who don’t respond immediately can watch storage fees consume whatever margin they had left.

“Imagine it’s 3:00 a.m. and one of your drivers is involved in a rollover accident on the interstate,” Brasher said. “The truck and trailer are blocking the roadway, the trailer is breached, and cargo is strewn across the highway. When the County Sheriff shows up, his priority is to get those travel lanes cleared as fast as possible, so he dispatches a tow company.”

The motor carrier has no say in which company responds, and the moment that tow operator hooks up, a billing clock starts running that can be extraordinarily difficult to stop. “Motor carriers need to understand, you do not get to choose that tow company,” Brasher said.

Once the tow company takes possession of the truck, trailer, and any salvageable cargo, those assets typically go to the operator’s storage facility. From that point forward, every day on the lot costs money, and the fees compound across multiple line items.

“We’re talking an average of $120 per day for storage, per component. $120 for the truck, $120 for the trailer, and $120 for the cargo, every single day,” Brasher explained. “They will not release any of it until their invoice is paid in full.”

That structure gives tow companies an asymmetric advantage. The motor carrier needs its equipment back to generate revenue. The cargo may be time-sensitive or perishable. With every day that passes, the bill grows, creating pressure to settle quickly and on the tow operator’s terms.

“They are holding your property until the bill is paid,” Brasher said. “Towing operators know how desperate the situation is and use it to their advantage. So we’ve all heard that possession is nine-tenths of the law; in this case, the tow company has all the leverage.”

The scale of the problem is significant. Brasher cited industry data showing the average tow-and-recovery invoice comes in at nearly $12,0001, a figure that can balloon dramatically depending on the complexity of the scene and the aggressiveness of the operator.

“There’s a documented case in Virginia where a single truck crash recovery resulted in a $200,000 invoice2,” Brasher said.

Beyond the sticker shock of individual invoices, the financial exposure is magnified by the way insurance coverage is typically structured. A truck crash can involve multiple parties, such as the motor carrier, the shipper, and the broker, each with different policies and different carriers. The coverage triangle doesn’t always close cleanly.

“Generally speaking, an auto policy covers the truck and trailer, while cargo insurance covers the cargo,” Brasher said. “Let’s call this a triangle of coverage that gets very murky very fast.”

The murkiness is especially dangerous when towing costs exceed what the policy was designed to handle. Many commercial auto policies carry specific sub-limits for towing and recovery. Those caps may have been set before predatory billing pushed invoices into six-figure territory.

“So if that tow recovery bill comes in at $60,000 or $100,000, and I can assure you it does, the motor carrier is responsible for the difference,” Brasher said. “That leaves a $10,000 excess exposure over those sublimits for the cargo expenses, and the motor carrier is responsible for that excess. That can be a devastating financial hit for small fleets and owner-operators.”

The math can be unforgiving. A carrier running a handful of trucks may not have the cash reserves to absorb a five- or six-figure surprise. Because tow operators are likely to refuse to release equipment until the invoice is settled, the carrier is also losing revenue on a truck that’s sitting idle.

The frequency of these situations is what makes the issue systemic rather than anecdotal. Brasher noted that rollovers are a daily occurrence in the claims data he reviews, and that the vast majority of carriers have been on the wrong end of an inflated tow bill at some point.

“I see at least one rollover a day; they are extremely common, especially in winter months when roads are icy,” Brasher said. “Roughly 83% of motor carriers have experienced excessive towing rates3.”

The problem goes beyond aggressive pricing. Brasher pointed to outright fraud as a recurring issue in the towing ecosystem, including cases where operators submit duplicate invoices to different insurance companies for the same recovery event.

Regulation has been slow to catch up. Towing oversight varies dramatically from state to state, with no unified federal framework governing rates or business practices for heavy-duty recovery. That patchwork leaves carriers with few guardrails in unfamiliar jurisdictions.

“Regulation is spotty and it’s very state-specific,” Brasher said. “You don’t have time in the moment to figure out the regs for this particular state. Tow companies have all the leverage in this scenario; it’s like the Wild Wild West.”

Five best practices for managing towing exposure

Despite the structural disadvantages, Brasher outlined a five-point framework for minimizing financial damage. The common threads are preparation and speed.

The first and most critical step is notifying the insurer immediately. Storage fees accrue daily, and every day of delay erodes the insurer’s ability to negotiate on the carrier’s behalf.

“Timely notification is everything,” Brasher said. “We’ve had carriers call us three weeks after an accident, and by then the storage fees alone have become enormous. We’re starting from a position, at that point, of zero leverage. So the moment something happens, call us, and we can get involved.”

Second, motor carriers should review their towing-related coverage limits before an accident forces the question. Understanding the sub-limits on a policy is the kind of homework that pays for itself the first time a $60,000 invoice lands on the desk.

Third, motor carriers should negotiate aggressively. Tow operators build inflation into their initial pricing precisely because they expect pushback.

“Towing companies know the invoices are inflated,” Brasher said. “They expect to negotiate. Every insurer will try to work the bill down, and most towing companies will generally compromise. So don’t accept the first number they give you. Always, always negotiate.”

Fourth, every invoice should be itemized and scrutinized. Labor hours, equipment charges, and storage fees should all be broken out and verified, including a check for duplicate billing.

Finally, documentation is essential. Every communication (emails, phone calls, settlement offers) should be logged. Because motor carriers bear strict liability for cargo in interstate transit, walking away from a disputed tow bill isn’t an option. A well-documented paper trail can make the difference between a negotiated resolution and protracted litigation.

“Remember, at the end of the day, in interstate transit, the motor carrier is strictly liable for that cargo, so you can’t walk away,” Brasher said. “But if you’re making good-faith efforts to pay and they’re refusing to negotiate or release your cargo, make sure everything is documented.”

The broader takeaway is that towing exposure has graduated from a routine operational cost to a potential balance-sheet event. Carriers that haven’t reviewed their coverage limits or established internal notification protocols are betting that it won’t happen to them, but they’ll likely lose eventually, according to the data.

“An accident is no longer just an operational headache; it’s a potential six-figure financial event,” Brasher said.

If you’re looking for additional resources on managing towing-related risks, visit Travelers.com today to evaluate whether your current coverage limits reflect the reality of today’s towing environment.

Citations:

1 American Transportation Research Institute, “Causes and Countermeasures of Predatory Towing,” November 2023. Average tow and recovery invoice of $11,681.27 based on analysis of 490 invoices ranging from $250 to $110,000.

2 FreightWaves, “When Towing Becomes Predatory,” February 2025.

3 American Transportation Research Institute, “Causes and Countermeasures of Predatory Towing,” November 2023. Excessive rates experienced by 82.7% of motor carriers; unwarranted extra service charges experienced by 81.8% of carriers.