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National Insurance Crime Bureau

Chicago City Council Votes To Approve Tighter Towing Regulations

Towing

DES PLAINES, Ill., May 26, 2021 — The National Insurance Crime Bureau is pleased to announce the passage of changes to the city ordinance requiring additional licensing to improve towing safety by the Chicago City Council in a vote held earlier today.

“We are grateful the Chicago City Council voted and passed these changes to the ordinance ultimately safeguarding Chicagoans from years of unsafe and unscrupulous towing service practices,” said Tim Lynch, senior director of government affairs with the National Insurance Crime Bureau“We are especially thankful to Alderman Gil Villegas for his untiring leadership guiding these changes within the City Council improving safety and ending the schemes responsible for taking thousands of dollars from the pockets of all of our neighbors here in Chicago.”

According to data received by members of the National Insurance Crime Bureau, Chicago ranks as the second most affected major city in the nation for towing abuse. Furthermore, a survey of several insurance companies identified Chicago as one of the “most problematic” cities nationally for towing-related abuses.

“We believe strengthening licensing provisions and implementing stricter penalties is a step in the right direction to reduce the number of bad actors and improve the safety of innocent drivers,” said Lynch.

Changes to address deceitful towing practices are not unique to Chicago. The city of Philadelphia implemented towing regulations which ultimately safeguarded tow customers and reduced the potential for insurance fraud. California similarly passed regulations prohibiting tow companies from stopping at an accident scene unless called by the vehicle owner or law enforcement and requires all tow companies provide written estimates of all charges to the vehicle operator before proceeding with a tow. Arizona has similar laws and Ohio allows civil action by insurers against a towing company operator to recover a vehicle. 

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847.894.2569
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Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800.TEL.NICB (800.835.6422) or submitting a form on our website.

About the National Insurance Crime Bureau: Headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting, and defeating insurance fraud and vehicle theft through Intelligence & Analytics, Learning & Development, and Strategy, Policy, & Plans. The NICB is supported by more than 1,200 property and casualty insurance companies and self-insured organizations. NICB member companies wrote over $530 billion in insurance premiums in 2020, or more than 82% of the nation's property-casualty insurance. That includes more than 95% ($236 billion) of the nation's personal auto insurance. To learn more, visit www.nicb.org.