Predatory Towing Practices Costing Carriers Six Figures Per Accident
Motor carriers have little control over tow operators dispatched to accident scenes, and those operators are using their control of stranded equipment to demand inflated payments that can exceed $200,000 per incident, according to Stephen Brasher, Travelers Inland Marine Claim Unit Manager, speaking with FreightWaves. When a crash occurs, county sheriffs dispatch whatever tow company responds first. The motor carrier cannot choose the operator or negotiate terms. Once the truck, trailer, or cargo reaches the tow operator's lot, daily storage fees begin accumulating immediately and compound across multiple line items. Brasher outlined the fee structure: $120 per day for truck storage, $120 per day for trailer storage, and $120 per day for cargo storage. That totals $360 daily for a typical accident recovery. Tow companies will not release any equipment or cargo until invoices are paid in full, giving them complete leverage. The average tow-and-recovery invoice reaches nearly $12,000, but complexity and operator aggressiveness can drive costs much higher. A documented case in Virginia resulted in a $200,000 bill for a single truck crash recovery. The financial squeeze intensifies quickly. Time-sensitive or perishable cargo makes carriers desperate to settle fast. Equipment tied up in recovery yards generates no revenue while daily fees mount. This asymmetric advantage allows tow operators to dictate terms knowing motor carriers will agree to nearly any price to recover their assets and resume operations.