Insurance Risk Services of Georgia Finds Roadside Assistance Towing Programs Lack Financial Responsibility, Accountability and Expose Motorists to Great Financial Risks
Insurance Risk Services of Georgia (IRSG) finds roadside assistance towing programs lack financial responsibility, and accountability and expose motorists to great financial risk with using roadside assistance towing services, according to a recent insurance risk assessment of Georgia's towing industry.
In a Risk Assessment for Georgia's Towing Industry, IRSG found that roadside assistance programs, third-party roadside assistance dispatch companies that profit off dispatching towing services for automotive manufacturers and insurance carriers, dispatch tow services to motorists in need while operating without financial responsibility and accountability to the motorist. IRSG has found that roadside assistance dispatch companies use tow providers that lack training, improper equipment, and fail to meet minimum legal requirements to operate. Roadside assistance dispatch companies pay low rates that fail to cover labor and operational costs for the service, often resulting in vehicle damage. When damage incidents occur, the roadside assistance dispatch companies hide behind complicated vendor contracts that shield them from liability, leaving the motorist to deal with the problem independently. When a commercial transportation insurance claim occurs, the claim process takes an average of three months to process and then is usually denied or settled at a fraction of the claim amount. Commercial insurance programs operate much differently from consumer insurance.