Wednesday, December 15, 2010

How to Avoid Tow Truck Scams

December 14, 2010, 4:25 pm

From our colleagues at Bucks:

If you run into problems on the road this winter, you should be wary of tow trucks you didn’t call that offer to help.

There’s a chance that those tow truck drivers will offer services at an extremely high price and or may keep your car hostage until you pay high towing and storage fees. A tow for a simple flat tire, for instance, could result in a $1,600 bill for towing and storage.

The insurer Allstate recently issued a warning about the rise of such scams. It said its insurance adjusters frequently encountered these cases, which it called bandit tow scams, and offered tips to help consumers avoid falling victim to them.

To be sure, Allstate has a vested interest in encouraging consumers to stay away from such tows because insurers may have to pay for such claims under drivers’ comprehensive or collision coverage. The fees, according to Allstate, can run up to thousands of dollars. “When Allstate pays claims for fraudulent charges, it can certainly impact the price of insurance for everyone,” said Christina Tyler Loznicka, a spokeswoman for the company.

Read more here.

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