New Towing Laws: What Operators Need to Know

New Towing Laws: What Operators Need to Know

April 8, 2024

The towing industry is experiencing a wave of new legislation across different states, aimed at cracking down on perceived predatory billing practices against truckers. From requiring published rate sheets to mandating detailed invoices, these new rules are designed to increase transparency and prevent excessive fees.

For towing business owners, this change can be unsettling, as it may feel like the regulations are accusing the industry of wrongdoing. However, operators should view this as an opportunity rather than a threat. By getting ahead of these laws, they can protect their hard-earned reputations as trustworthy, reliable service providers.


Understanding the Key Requirements

While the specific laws vary from state to state, most of the new legislation covers a few key areas:

Rate Transparency: Towing and storage providers will need to maintain a clear, comprehensive rate sheet listing all potential fees for services like vehicle recovery, cleanup, etc. This rate sheet must be made available to motorists, insurance companies, and any other involved parties upon request.

Itemized Invoices: Any charges billed will need to be fully itemized and detailed on the final invoice. No more ambiguous lump sums – every line item like labor, callout fees, materials, etc. must be listed out.

The penalties for non-compliance can be serious, including potential criminal charges in some states. So it’s critical for operators to understand and follow the new rules to the letter.

Demonstrating Compliance

The idea of overhauling invoicing and documenting every rate may seem like an administrative headache. That’s why operators should explore technologies like RoadSync Checkout to help them stay compliant seamlessly.

With RoadSync’s digital work orders, operators can transparently lay out their rates from the initial callout. Customers get upfront pricing in writing, signed and secure. No more “he said, she said.”

Even better, these work orders seamlessly convert into detailed invoices before final billing. The platform, if the workflow is used correctly, accounts for every line item – callout, labor, parts, etc. – calculating fees according to the published rate sheet. Comprehensive paper trails become turnkey.

By using tools like RoadSync, towing businesses can rapidly adapt to the new requirements around transparency and documentation, protecting their reputation and revenue streams.


Highlighting Trustworthiness

The reality is, most towing operators have been operating reputably for years or decades. These new industry standards are an opportunity to showcase that legitimacy.

As businesses adopt tools and processes for compliance, they should amplify those efforts in their marketing and customer interactions:

  • Promote published rates proudly, highlighting the commitment to transparency
  • Share examples of detailed, line-item invoices as proof of fair billing practices
  • Highlight certifications, community involvement, and other trust signals
  • Let customers know the specific steps being taken to uphold ethical standards
  • By making compliance a core part of their brand’s narrative, operators can overcome negative assumptions and position themselves as the go-to trustworthy choice.

The Bottom Line

While new towing legislation may seem burdensome initially, it gives the industry a chance to reinforce the credibility and customer-focused service that operators have worked hard to build over the years. Adopting tools like RoadSync can streamline compliance processes. Promoting ethical standards through marketing can help businesses shout their trustworthiness.

By viewing these regulatory changes as an opportunity, not a threat, towing operators can not only stay compliant but set a new bar for transparent, customer-centric services. It’s a chance to protect their companies’ futures by bolstering reputations today. Together, the towing industry can adapt and thrive in this new environment of increased accountability.