The American Property Casualty Insurance Association (APCIA), the Illinois Insurance Association (IIA) and the National Insurance Crime Bureau (NICB) have expressed their support for a new towing proposal by Alderman Gilbert Villegas of Chicago’s 36th Ward.
The proposal, which builds on a 2021 ordinance aimed at curbing rogue towing practices, is set to be reviewed by the City of Chicago’s Committee on License & Consumer Protection on April 8, 2025.
The 2021 ordinance sought to increase transparency and accountability among towing companies, addressing issues such as unauthorized towing, excessive fees and predatory behavior at accident scenes. While it introduced some key reforms, concerns about rogue tow truck operators have continued to surface. Villegas’ new proposal aims to strengthen these reforms with additional consumer protections and more robust enforcement measures.
Key provisions of the new proposal include requiring towing companies to file their fee schedules with the Business Affairs and Consumer Protection office. It also prohibits towing companies from moving vehicles to second storage facilities without the owner’s written consent and encourages the acceptance of payment methods other than cash.
Additionally, the proposal gives vehicle owners access to their belongings in towed vehicles and prohibits towers from charging fees not listed in their fee schedules or exceeding established limits.
The ordinance also seeks to combat predatory behavior at accident scenes by establishing penalties for solicitation. Vehicles used in violation of these rules would be subject to seizure and impoundment, with the vehicle owner facing a $10,000 fine. The proposal also grants a private right of action, allowing individuals to file civil suits to enforce the provisions and seek damages, along with attorney’s fees.
“Alderman Villegas has been a strong advocate for consumer protections against rogue towing practices,” said Brooke Kelley, assistant vice president of state government relations at APCIA. “These predatory operators put motorists, pedestrians, and first responders at risk, and this proposal is an important step toward increasing consumer safeguards and enforcing stricter rules.”
The proposal follows growing concerns about unethical towing practices in Chicago. A survey by APCIA found the city to be one of the most frequently cited for predatory towing.
Kevin Martin, executive director of the Illinois Insurance Association, highlighted the importance of the proposal. “Shady tow truck operators have taken advantage of consumers for too long,” Martin said. “This ordinance will help protect consumers and target the actions of rogue towing companies. We fully support Alderman Villegas and urge the committee to pass this measure.”
The NICB also voiced its support. “In the last three years, we've seen an 89% increase in predatory towing claims,” said Craig Sepich, NICB’s Government Affairs director. “This proposal is a significant step in protecting consumers from unscrupulous towing practices. We will continue to work with Chicago law enforcement to combat fraudulent towing schemes.”
