Beware Tow Truck Scams, Ontario Drivers

December 4th, 2015  |  Auto

This winter, Ontario drivers need to be on the lookout for slippery roads and tricky tow trucks. Auto shops are offering tow truck drivers cash incentives, ranging between $200 and $500, to haul business to their shops via referrals.

A CBC Marketplace investigation reports that drivers are lured into taking their cars to the shops suggested by tow trucks, and then the shops force unapproved service fees on the drivers.

According to Sahil Mulla, a driver who was rear-ended in Mississauga, his tow truck driver took advantage of his distracted and stressed state. After his accident, Mulla signed a form that handed his car repairs over to Lyons Auto Body, the shop recommended by his tow truck driver. When Mulla later tried to take his car elsewhere, Lyons refused to release his car unless Mulla paid an $8,000 bill for two days of storage.

While car insurance policies can typically pay storage, repair, and rental fees, such robust coverage usually calls for a high premium.

Canada’s public insurance system provinces, BC, Manitoba, and Saskatchewan, report far fewer cases of tow truck scams. The Ontario government hopes increased regulation in the towing industry, scheduled to begin in 2016, will keep tow truck drivers upfront about costs and auto shop affiliations.

In the meantime, Ontario drivers, stay alert. Review all the paperwork before you sign, ask questions, and remember one thing: you don’t have to take your car to the auto shop that your tow truck driver recommends.

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