Beware of dishonest tow drivers after an event

If you've just been involved in a car accident, your focus should be on safety and getting help - not avoiding scams. Unfortunately, this is exactly when dishonest tow truck operators often pretending to act on behalf of insurers to take advantage of vulnerable drivers.

This may mean you face unexpected costs, claim delays, and even legal complications.

How to identify a tow truck scam

Being aware of the warning signs can help you avoid being misled by unauthorised or rogue tow providers:

• Be cautious when searching online for help. Some operators manipulate search results to appear authorised by insurers and intercept people in need of help. Be certain of whether a website is really your insurer and not an unaffiliated company – for example, check the URL.
• If they ask for cash up front, be on alert. This may be an attempt to avoid accountability and avoid leaving a paper trail.
• Watch for unsolicited tow trucks. If a tow truck arrives shortly after the incident and you didn’t call for one, it could be a spotter looking to take advantage of the situation.

The dangers of using an unauthorised tow operator

A tow truck offering help on the spot might seem convenient - but if they’re unauthorised or misrepresenting themselves, you could face significant consequences. If you’re at all unsure, it’s best to reach out and confirm their details with your insurer.

You don’t have to accept their assistance, even if they pressure you - especially if your car is still safely drivable.

You may lose access to your vehicle

Unauthorised operators may tow your car to an unknown location and hold it until you pay inflated "release" fees.

This can delay your claim and prevent necessary repairs from being arranged promptly.

Unexpected costs can add up quickly

Money is the main reason these scam tow truck operators act in this way.

Scam operators rarely mention pricing at the scene. Instead, you may later receive a bill for their services. This can include excessive towing charges, daily storage fees, and inflated repair costs.

Legal disputes can follow

Disputing these costs can lead to long and costly legal battles.

You may need to involve state transport regulators or your relevant Consumer Protection Authority to resolve the matter.

What GIO Car Insurance covers

If you’re insured with GIO and hold a Comprehensive or Platinum Car Insurance policy, you have support when you need it.

If your car is unsafe to drive or requires storage while your claim is being processed, we’ll cover the reasonable cost of:

• One tow to get your car from the scene of the incident to:
  • our nearest repairer;
  • another location nominated or agreed by us
• Storage of your car.

We cover one tow per claim, unless we authorise otherwise.

What to do if you need a tow after a covered event when you’re insured with GIO Comprehensive Car Insurance

If you’ve been in an accident, here’s how to stay in control:

• Start a claim with GIO immediately - we’ll organise the tow for you.
• Confirm the tow operator is authorised by GIO. If you lodge online or over the phone, the tow will be arranged using one of our authorised providers.

Staying informed and making the right decisions at the scene of an incident can protect you from unnecessary stress and expense. And if you're ever unsure, just give us a call - we’re here to help.

Make a claim

Read more:

• How to avoid car hire scams
• Common car breakdown scenarios and how to avoid them
• What to put in your car emergency kit: A checklist

Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Consider the Product Disclosure Statement before buying this insurance. The Target Market Determination is also available.

The information is intended to be of general nature only. Subject to any rights you may have under any law, we do not accept any legal responsibility for any loss or damage, including loss of business or profits or any other indirect loss, incurred as a result of reliance upon the information. Please make your own enquiries. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.