New towing rules rolled out in province to curb "chasers"

New towing rules rolled out in province to curb “chasers” | Insurance Business Canada

Motor & Fleet

New towing rules rolled out in province to curb “chasers”

Move follows incidents of insurance fraud and unscrupulous behaviour from towing operators

Motor & Fleet

By
Jonalyn Cueto

Ontario has rolled out new towing measures, as rules under the Towing and Storage Safety and Enforcement Act (TSSEA) took effect on January 1, 2024.

The move comes after several incidents of insurance fraud, inflated invoices, stunt driving and threatening or intimidating behaviour by “chaser” tow operators towards customers and legitimate operators. “Chasers” pressure and intimidate stranded motorists to use their services, usually at elevated rates.

Under the TSSEA, towing operators and storage facilities must be licensed by the province, clearly displaying the company name and certificate number on tow trucks and obtaining written consent before towing.

The rules are set to ensure unscrupulous tow operators and their drivers do not inflate fees and misrepresent services to stranded motorists. They also supersede municipal bylaws across Ontario.

Customers must also sign a “consent to tow” form that will detail the provincially mandated maximum rate.

Aside from the new measures, Ontario will launch an online portal with every tow operator’s maximum rate amount, as well as a public complaints portal.

Jeff Walker, president and CEO of CAA North & East Ontario, welcomed the new measures, describing them as a step in the right direction. However, he acknowledged it may take time to get disreputable “chasers” off the road.

“In the past few years, the towing industry has been marred by disreputable actors attempting to take advantage of consumers in vulnerable places during times of stress,” said Walker.

“The province of Ontario has taken on the regulation of the industry from municipalities, and while this will help enormously, we know that bad actors don’t play by the rules.

“We hope the days of consumers having taken vehicles hostage when drivers are broken down on the highway, using inappropriate tactics to take them, misinforming drivers and demanding outrageous amounts of money to release them will soon be over.”

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