March 10, 2004 by Canadian Underwriter
Expectations are that the $300 cap on vehicle towing and storage costs to be in force in Ontario by mid-April will now be dropped. The Collision Industry Action Group (CIAG) says that sources close to Michael Colle, parliamentary assistance responsible for insurance reform, are reporting the cap will be canned, and a Toronto Sun article today confirms this.
The change would have placed a cap of $300 on towing and storage, a cost which can often run higher. Insurers had wanted the change as an antidote to tow truck drivers and storage yards overcharging for their services.
Tow truck drivers and others fought back, noting that often legitimate towing and storage fees exceed this cap. ” Although we do not have large towing abuse in our local area, our members were worried that this capping would create problems for consumers as regulated tow prices were close to the proposed cap price already,” says Tony Nigro, president of the Hamilton District Autobody Repair Association (HARA), in the CIAG press release.
Collision repair associations, who have expressed their own concern about abuses in the towing/storage industry, say the response to the problem is to put standards into the regulations under the Collision Repair Standards Act. While the act has been passed, it has yet to be implemented.