Alabama Tow Truck Operator Set for Trial on Overcharging Insurance Companies

One of five Alabama tow truck operators charged with overcharging insurance companies will go to trial in April, almost four years after the men were hit with insurance fraud charges.

Danny Williams, owner of Southport Towing, in Mobile, Alabama, was charged in 2020 with charging auto insurers more than the maximum allowed by law, according to local news reports. He has maintained his innocence.

Another company owner also is fighting the charges, and charges were dropped against one operator. Another operator agreed to a settlement that required him to pay only restitution to insurance carriers, but he balked at that agreement at the last minute in March, the Al.com news site and local TV news stations have reported.

A city ordinance forbids tow companies from charging more than $125 for most vehicles, and from tacking on extra fees. Even the Mobile Police Department acknowledged this month that it, too, had charged more than the law allows, thanks to some confusion over the ordinance. The department’s policies and procedures are have been corrected, AL.com reported.

Some of the tow truck owners have said they have simply charged what an impoundment lot operator told them to charge. They also have argued that under federal law, they should be able to charge as much as they want or as much as the market will bear.

Topics Carriers Auto Alabama