Tow truck operators are notorious for their aggressive approach to getting business - yet they provide a necessary service and may even be welcome company at the scene of a traumatic accident or remote roadside breakdown. You can de-stress the experience of needing a tow and keep the price within reason by knowing the steps to follow and the questions to ask.
The towing industry gets up the noses of many motorists. Either we've had to deal with tow truck drivers weaving demonically in and out of traffic in an all-out chase to be first at the scene of an accident, or we've had to pay indecently high costs for a tow. However, many tow truck operators go out of their way to provide additional services and assistance to motorists who are distressed, injured or traumatised by a breakdown or an accident.
Caroline da Silva of the South African Insurance Association (SAIA), which represents short-term insurance companies, says the insurance industry has a long history of problems with claims for towing services, mainly because of exorbitant costs and collusion between tow truck operators and panelbeaters. But attempts are being made to clean up the business.
The Automobile Association (AA), SAIA and individual insurance companies have put pressure on the towing industry, while the industry itself is attempting to force out the cowboys and crooks.
The main industry body is the South African Towing and Recovery Association (Satra), a nationwide AA-recognised association that has an enforceable code of conduct to protect motorists and the public in general.
Here are 10 things you need to know and ask before you allow a tow truck driver to hitch up your vehicle.
Most people have no idea what to do when they break down or have an accident. As a first step, you should establish from your insurance company what it expects from you. Get an emergency telephone number to call if necessary.
If you are a member of the AA, establish the organisation's procedures and keep the Emergency Rescue Services Control Centre number handy. You will find details in the members' handbook.
Your insurance company is involved if you have an accident, but not if you break down at the side of the road. The AA is involved if you break down at the side of the road, but has restricted involvement if you have an accident, unless you have extended AAPlus membership. However, in both circumstances, all AA members are entitled to have their cars towed through an AA-approved towing service.
Da Silva says most insurance companies have contracts with towing companies through Satra so they can control towing costs.
Always check your insurance policy to establish the terms of your cover. If you bought your policy from a broker, be sure you know the name of the underwriting company.
Insurance only covers you in the event of an accident, not a breakdown. There could be numerous exclusions or limitations in your policy, including limits on claims for towing. You also need to know if you are covered for the cost of storing your vehicle at the towing company's yard or the panelbeater's premises.
The AA provides a free towing service to members, but when the distance of the tow exceeds 40 km (from the towing company's premises to the scene of the accident and back again) you have to pay in full and submit a claim to the AA for reimbursement. The extended benefits of AAPlus members include free towing over any distance.
When you call the AA's Emergency Rescue Services Control Centre, you are given a reference number and the name of the approved towing service. Make sure the tow truck operator you use has the same reference number, the right name and the AA Quality Assured (AAQA) decal on his or her vehicle. And then do not let him or her remove your car without first giving you an invoice reflecting the name of the company, the cost of the tow and the reference number.
If you are in any doubt, you should call the AA control centre again. The AA's nationwide emergency rescue service number is 0800 010101.
If you are not a member of the AA, are not insured, and have no idea which tow-truck operator to use, always accept the services of the first Satra member on the scene, because this gives you some protection and a body to which you can complain if you are dissatisfied with the service.
A Satra member can be identified by the Satra decal affixed to one or other side of the recovery vehicle. You must ensure the decal is valid by checking that it is marked for the current calendar year and carries a serial number, which is unique to that operator. If a Satra vehicle does not arrive at the scene, call Satra and it will dispatch a vehicle to assist you.
Nicole Martin, the company secretary of the association, says Satra has a code of conduct and it will deal with complaints about members.
Satra can be contacted by telephone at 0861 072872 and (011) 493 1233, by fax at (011) 493 7761, or email satra@telkomsa.net; or write to PO Box 39440, Booysens 2016.
Ever wondered how tow truck operators seem to know about accidents almost before they happen? Funnily enough, it is not because their driving habits leave a trail of wrecks in their wake. Often, it's because they listen in, illegally, to police radio frequencies or pay spotter fees - sometimes to corrupt officials at emergency call centres.
But a spotter could be anyone: a petrol pump attendant, a pensioner living in a block of flats near an accident scene, or a street hawker. Apart from the criminal aspect of this practice when it involves officials, the problem with spotter fees is that they create costs the tow-truck operators need to recoup.
Satra members are expected to do no more than position their vehicles strategically at high-accident locations. "This ensures a prompt response to an accident and the minimal time delay before traffic starts to flow normally again," Martin says.
If you break down or have an accident on a busy highway, you may be under pressure to have your vehicle removed, as the traffic officials will want to clear any obstruction to the free flow of traffic.
You do have the right to use the tow truck operator of your choice, but, at the same time, the Road Traffic Act gives traffic officials the power to insist your vehicle is towed (even just to the side of the road) if it is causing an obstruction. Meanwhile, officials could be receiving spotter fees. Clearly, you need to have your wits about you.
Da Silva says: "We cannot always ensure that our approved tower will get the call or the business, but the odds improve if the client is well educated as to who to call, and calls an approved tower quickly."
Once you have decided to use a particular tow-truck operator, you must ensure that you get all the relevant information in writing. Satra members are required to compile an Accident Tow Authorisation form, which both you and the tower must sign, Martin says.
The form must include:
- Details of where the vehicle is to be taken;
- An inventory of personal possessions left in the vehicle; and
- A description of damage to the vehicle.
In cases where the driver of an accident-damaged vehicle is incapacitated, Martin says, the Satra code of conduct requires the Satra member to have the form signed by the person responsible for the vehicle at the accident scene, usually the attending traffic officer.
Even approved tow truck operators sometimes take vehicles to non-approved panelbeaters in return for commissions, Da Silva says. When that happens, the towing company might charge the correct price, but the panelbeater, having paid the towing company a hefty commission for bringing it the work, needs to recover the cost from someone.
The trouble really starts, Da Silva says, when you find your vehicle and want to move it to a different panelbeater. The tow truck operator or the panelbeater will charge an extortionate release fee for storage costs (anywhere between R3 000 and R7 000) because a lot of money has changed hands to get that vehicle into that yard and these "costs" have to be recovered. (If the panelbeater gets the business, it will usually write off these costs.)
Da Silva says the AA and insurance companies that have contracts with towing companies negotiate standard towing fees, including up to three days' storage costs, in an effort to avoid this scenario.
"When you call either your insurance company or the AA, establish where the vehicle must be taken. If you can't do that for any reason, you need to establish from the tower where your vehicle will be taken. Get any information the tower gives you, and any promise he makes, in writing."
In terms of the Satra code of conduct, Martin says, storage is defined as the holding of a vehicle in secure premises until such time as the vehicle can be transported to its final destination. Prices for storage should range from R90 (excluding VAT) to R225 (excluding VAT) a day or part thereof.
She says the panelbeating industry uses Satra's members to market its panelbeaters and direct repair work to them.
"It is important to realise that Satra's members have your best interests at heart and are able to direct your vehicle to an appropriate panelbeater; assist you with obtaining your accident case number and even help you to register your claim," Martin says.
The costs of towing can vary enormously, depending on where you are and whether the tower has an agreement with an insurance company or the AA or is a member of a recognised towing organisation.
Martin says Satra does not fix, set or recommend prices, as this would contravene the Competitions Act.
"This means that, in terms of the law, we are not allowed to protect the consumer from ridiculous charges. However, Satra's members are prohibited from exploiting the consumer and are committed to good business practice and improving the image of the towing and recovery industry."
Some members charge lower prices for uninsured vehicles, and Martin says Satra is opposed to this on the grounds that the insured motorist should not subsidise the uninsured motorist.
She says towing divides into two categories for charging purposes - accidents and breakdowns - since the services are different.
- Accident tow costs: Market prices for an accident tow within a radius of 20km of the Satra member's premises range from R1 295 (excluding VAT) to R1 650 (excluding VAT). For greater distances, a rate ranging from R3.50 (excluding VAT) to R4.25 (excluding VAT ) a kilometre kicks in. If a vehicle is insured with an insurer who has entered into an agreement with Satra, prices are governed by the contract.
- Breakdown: Market prices for a trade tow within a radius of 20-km range from R350 to R650 (both prices exclude VAT). Thereafter, a per kilometre rate ranging from R3.50 per km to R4.25 (both prices excluding VAT) per km is charged.
There may also be an additional recovery fee - for example, if a vehicle has gone into a deep ditch. This is generally between R300 and R950 for 15 minutes of recovery time, with additional charges if a sub-contractor is called for, to, for example, supply a larger recovery vehicle.
This article was first published in Personal Finance magazine, 1st Quarter 2004. See what's in our latest issue