Arizona: NAMIC Joins Insurance Industry in Supporting Motor Vehicle Towing and Storage Bill

On Jan. 31, SB 1291, which deals with motor vehicle towing and storage fee disclosure requirements, was assigned to the Senate Committee on Transportation and the Committee on Rules for public hearing.

The bill sets reasonable limitations on what fees and services may be performed by a motor vehicle towing and storage company without prior permission of the motor vehicle owner or its insurance carrier.

NAMIC, in conjunction with other members of the insurance industry, will be actively supporting this legislation for the following reasons:

SB 1291 is a reasonable and appropriate consumer protection bill. Motor vehicle storage and towing fees can be very expensive and may create an economic burden for many consumers. Consequently, consumers have a financial need and legal right to have some control over what motor vehicle towing and storage services and fees are to be performed before they become legally liable for the cost of these professional services. SB 1291 will provide consumers with meaningful consumer protections against unauthorized and/or unnecessary motor vehicle towing and storage charges.
SB 1291 will provide Arizona citizens with information they need to be informed consumers. Consumers and their insurance carriers need detailed information about the motor vehicle towing and storage services being performed and billed by towing professionals in the state. SB 1291 requires motor vehicle towing and storage companies to provide consumers and their insurance carriers with a detailed written statement of all the services performed and the charges billed.
SB 1291 will assist insurers in their pro-consumer cost-control measures. Insurance carriers are vigilant in their efforts to control cost-drivers that impact insurance rates for the consumer. SB 1291 will assist carriers in this endeavor by requiring towing and storage companies to secure prior permission from the consumer or his/her insurer before certain costly services are performed.
The disclosure requirement of SB 1291 is consistent with standard business practices. Service-based companies typically provide their consumers with an itemized billing statement of the services performed and the corresponding fees charged as part of their contractual relationship. The disclosure requirement set forth in SB 1291 is reasonable and appropriate, and should not create an undue economic burden for motor vehicle towing and storage companies.

"SB 1291 is a consumer-friendly bill that will protect consumers from being charged for towing and storage fees they don't know about or actually need,” said Christian J. Rataj, NAMIC's Western state affairs manager. “NAMIC will continue to work with the insurance industry, the motor vehicle towing and storage business community, and the state Legislature to craft legislation that protects the legal rights and economic needs of insurance consumers who utilize the valuable services of motor vehicle towing and storage companies."

Direct questions to NAMIC State Affairs Manager Christian J. Rataj.

Posted: Tuesday, February 12, 2008 12:00:00 AM. Modified: Friday, February 15, 2008 2:46:13 PM.

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We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.