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ITOW > Towing News > Archives > 2004 > February 2004 Archive
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Feb 24, 2004
Feb 23, 2004
Feb 19, 2004
Feb 13, 2004
Feb 9, 2004
Feb 2, 2004


21-Year-Old Killed in Crash With Tow Truck
Feb 24, 2004
 

FLORIDA -- A 21-year-old driver, who witnesses say was speeding up and down a residential street has died, after running a stop sign and hitting a tow truck.

Fort Lauderdale police officer Tim McCarthy says James Mallory Junior was thrown from the Buick Regal he was driving, and the car landed on top of him.

Witnesses lifted the car off of him, but Mallory was pronounced dead at Broward General Medical Center.

People in the neighborhood say Mallory was driving as fast as 80 miles per hour.

The tow truck's driver Rodney Robinson, who was not injured in the accident, says it sounded like a race track as Mallory sped through the stop sign.

State records show Mallory's license had been suspended. (Thanks Mike)

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Two Tow Truck Drivers Killed in Crash on I-495
Feb 23, 2004
 

MASSACHUSETTS -- A Raynham man struck and killed two tow truck drivers early yesterday as they stood in the breakdown lane of Interstate 495 in Brockton, police said.

Daniel Cummings, 21, plowed into Timothy Kelly, 23, of Bridgewater, and Jarrod Drew, 24, of Brockton, just south of Exit 10 about 4 a.m., said Sergeant Edward Principe. Cummings was listed in stable condition at Beth Israel Deaconess Medical Center last night.

Cummings faces marked lane violation charges, but State Police said the charges could be upgraded depending on the outcome of a blood alcohol test.

Kelly and Drew worked for A-1 Affordable Towing of West Bridgewater, where Kelly phoned early yesterday to say his truck broke down. Drew drove a flatbed truck to help him, police said. They were standing outside the vehicles when they were struck.

Kelly was pronounced dead at the scene and Drew was pronounced dead at Sturdy Memorial Hospital.

Drew's uncle, Robert Drew, said Jarrod lived with his girlfriend and their son in Middleborough. He called his nephew, a graduate of Brockton High School, a "real good kid."

The two had worked together at the towing company for about a year and were also friends.

Timothy Kelly grew up in Hanson. The second of six siblings, he attended Whitman Hanson High School, where he played football."He was very energetic, always on the go," said his uncle, Abington Fire Captain Ed Belcher. (Jessica Bennett and Stephanie Vosk - The Boston Globe)

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Lowered Production Means Diesel Prices On The Rise
Feb 19, 2004
 

The national average retail price for diesel increased 1.6 cents from last week to $1.58 per gallon, but it is 12 cents less than it was a year ago.

Tow operators paid more for diesel in every region than the week before, except in New England, where the price dropped .8 cents per gallon.

The biggest price change was in California, where the average price was almost $1.87 per gallon – 5.6 cents more than the previous week. The West Coast region saw the second-biggest price change at $1.79 per gallon, which is 4.8 cents higher than the previous week, according to the U.S. Department of Energy.

The Gulf Coast states sold the cheapest diesel, at $1.52 per gallon, nearly a penny higher than the previous week.

Price increases were affected by OPEC’s agreement to reduce quotas by one million barrels beginning April 1, a forecast that oil prices will remain firm, and winter weather hiking demand for heating oil.

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City Claims New Impound Fee is Not To Make Money
Feb 19, 2004
 

PENNSYLVANIA -- An ordinance that originally required a $10 registration fee for each vehicle towed from and within the City of Wilkes-Barre has been tabled until the city can get more legal advice.

The original wording of the ordinance made it apply to all tows performed in the city, however it has been re-worded so it only applies to cars towed for parking violations.

The fee has also changed from $10 to $25, but laughably, Mayor Tom Leighton claims the ordinance is not to make the city money, but instead to keep the police department organized, and insure that all non-consensual tows are registered.

City officials say the ordinance will likely be passed sometime next week.

The $20 will come directly out of the pocket of the city's contract towing company, which translates into a price increase for the vehicle owners that redeem their vehicle, and a loss for the towing company for the vehicles that go unredeemed.

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City Clears 836 Junk Cars From Streets
Feb 13, 2004
 

CALIFORNIA -- Police towed so many abandoned cars in "Operation Clean Sweep" that crews ran out of storage room, so space was leased in a lot next to Oakland Mayor Jerry Brown's downtown digs.

"Our goal was 1,000 cars," said Deputy Police Chief Peter Dunbar on Wednesday. "But we had to stop at 836."

The cost of the operation, which began Saturday and ended Wednesday, was funded by the state Abandoned Vehicle Abatement Program. Vehicle registration fees fund the program.

On Wednesday, police held a press conference at the storage yard owned by A&B Auto in the 8700 block of G Street in East Oakland. Between 2,500 and 3,000 cars -- most from Oakland streets -- are there now, according to Bob Conner of A&B Auto, who noted many of the cars often arrive in bad shape.

One of the newly towed cars, a badly charred Mustang GT, had a missing Vehicle Identification Number, a telltale sign that it could have been stolen and stripped, police said.

City Councilmember Desley Brooks (Eastmont-Seminary) asked for the crackdown after hearing complaints from residents about too many abandoned cars that were a blight on their streets.

Cars were targeted if they had been left on the streets for at least three days.

Many of the owners had not registered their vehicles in over six months or had more than five unpaid parking tickets.

A downtown lot in the 2700 block of Telegraph Avenue was used to house the overflow. The lot is adjacent to the mayor's loft.

Lt. Dave Kozicki said cars left on the streets are often used for prostitution, or to hide weapons and drugs, or dump garbage and even hazardous waste.

"We went out to get as many abandoned cars as possible, and we also went after cars that had not been registered, and persons who had not paid parking tickets in a long time," said Kozicki.

Towing cars not only prevents future crimes but improves the quality of life in neighborhoods, police said.

The towed cars also are expected to bring in $150,000 in unpaid parking tickets. Police also wrote 240 tickets under a new city ordinance that fines owners $250 for leaving vehicles on streets, Kozicki said.

Working with A&B Auto, the company which contracts with Oakland to tow vehicles, police said 200 cars were removed from Brooks' district alone.

Dunbar said police towed nearly 11,000 vehicles from city streets last year. However, that number will likely be reduced by half this year because budget cuts trimmed staff by 50 percent.

Some cars will be sold for scrap metal or parts can be sold, others will be auctioned by A&B Auto.

We are not going to stop ... we tow about 90 cars a day, said Kozicki. (Chauncey Bailey - Alameda Times-Star)

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Tow Operator Sentenced for Overcharging
Feb 13, 2004
 

NEBRASKA -- A judge is sending a strong message while sending a metro tow truck operator to jail. Scott Brown is facing 180 days for charging excessive fees.

Brown faced two counts of Unlawful Towing Fees and two counts of Towing Fees Exceeding the Maximum. In handing down sentence, Judge Lyn White said that Brown has displayed a pattern of dishonesty.

A handcuffed Brown, leaving court after sentencing said, "I don't think the sentence fits the crime."

But three of Brown's victims think the fit is just fine. Shannan Garcia tells us, "I think it's wrong to victimize people who are just out to have a good time." That "good time" road led to a downtown restaurant last July.

Brown's company, Patriotic Towing, was towing cars from there and bills show that he charged more than the $170 maximum allowed under city ordinance. Jenifer Aveni and Scott O'Connor paid $224.70.

Jenifer says, "Restitution would be nice. I feel like we were extremely overcharged for our car maybe sitting there six hours."

O'Connor weighed the sentence, saying, "Six months in jail; hope it's worth it to him. We contacted him, let him know we were upset and we thought what he was doing was illegal and he refused to give the money back and fought with us. So, I'm totally happy."

Brown says he's made changes in the way his company operates and that he plans to appeal the sentence.

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Professional Towing Operators in Ontario Fear Economic Ruin
Feb 13, 2004
 

CANADA -- Canada has a new national towing association and its breaking ground in the province of Ontario. The association has initiated a complaint to the Financial Services Commission and the Legislative Assembly concerning the provinces agenda to reduce consumer insurance rates in the province by reducing the amount paid to towing firms. Effective April 01, 2004, the province has plans to cap the amount paid to towing companies buy insurers to $300 for towing and storage of vehicles removed from motor vehicle collisions.

The Professional Tow and Recovery Operators of Canada say the regulation is unfair to consumers who pay absorbent insurance rates and many insured motorists will have to start paying for collision cleanup services directly out of their own pockets.

For years government officials have been raving about towing and storage cost to the media and have been famous for flexing their muscle with tow firms and bragging about cracking down on scrupulous tow operators. Yet government reports fail to mention the many services a towing firm must pay some municipalities before removing a vehicle from a collision scene.

Since legislative amendments were made to the Municipal Act 2001, giving municipalities the authority to regulate towing services and their operators, towing firms have been plagued with absorbent licensing fees for operators and equipment. In some places they must pay the municipality a kick back for every tow that is dispatched by the police services. In Brampton, if the customers choice of repair facility is closed when a vehicle is towed the tower must tow it for no-charge the next day. You don’t see the city doing this to other industries. If I take a cab to Zellers and it’s closed, I certainly have to pay the cab driver to take me back home and pay him again the next day if he provides another service.

Some municipalities are charging towing companies for traffic control if they have to stay on scene to direct traffic while the tow truck recovers a vehicle from a collision. This can cost the towing company as much as $450. For one hour of service.

It is out of pocket expenses like the above that appear to the public that the professional towing and recovery firms are charging excessive rates for the towing, recovery and storage of motor vehicles from accident scenes. Elected officials, insurance and consumers have always gone to the media with the impression that all associated cost of inflated tow invoices are the direct result of the towing and recovery industry. This is not true. The fact of the matter is the government is utilizing towing firms for their own private collection agency to charge and collect for municipal services that are provided to motorists at accident scenes.

Tow operators in Ontario say enough is enough. Many tow operators invest heavily in equipment and have certified personnel that risk their lives everyday while working with police and fire officials to clear the scene of an accident. They provide an essential public service in assisting to keep our roadways free from obstruction for the safety of other motorist. Ambulance, fire services and municipalities are paid handsomely for their services and equipment, yet the government wants private small business who actually do the cleanup and removal to absorb most of the cost associated with removing wrecked vehicles from the provinces highways.

Debates in recent years of the Legislative Assembly have continuously criticized tow operators for taking advantage of consumers. It has been stated, when motor vehicle collisions take place tow truck operators are like vultures and regulations are required for a few bad apples.

Historically, the problem of wreck chasing has been a problem in Toronto and surrounding areas. This practice is something that has been encouraged by police officials because it provides a quicker means of clearing obstruction for a highway.

Wreck chasers are an embarrassment to our industry. In fact, they are blight on an industry that has set very high standards for itself. They are often improperly equipped, poorly trained, ignorant of liability and other statutory requirements and only concerned with “snatching” a wrecked vehicle or disabled vehicle before a professional operator is ordered to the scene.

It seems unfair to tow operators the government would put their backs against the wall and punish honest, professional business people, as well as consumers for a few bad apples. Not every accident happens at an intersection in Toronto where a tow truck backs up and goes. Many accidents require specialized equipment, with a certified operator who has the knowledge to deal with challenging situations. The association hopes the Minister will reconsider his decision to limit the amount paid to the towing firm for consumers before implementing any changes. (Heather Llewellyn - The Professional Tow and Recovery Operators of Canada)

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International Announces Down Payment Match Program
Feb 9, 2004
 

ILLINOIS -- Helping customers prepare their businesses for expected industry growth in 2004, International Truck and Engine Corporation today announced a ”Down Payment Match” program with the purchase of an eligible International® truck or tractor.

The new International® “Down Payment Match” program offers customers up to $2,000 toward their down payment on eligible new International® 4000, 5000i, 7000, 8000 or 9000i Series trucks. The program is valid on up to 10 vehicles per customer and is available through International dealers until April 15, 2004.

Michael Cancelliere, vice president of North American sales for the Truck Group at International Truck and Engine Corporation, said the program is designed to help truck owners position themselves for success in the new calendar year.

“Customers are nearly unanimous in their optimism about a return to healthier business profits in the coming year,” said Cancelliere. “As a result, many are seeking to replace older vehicles or expand their capacity to handle projected increases in activity. This program offers a way for International customers to fulfill their fleet requirements while saving cash for other expenses.”

In addition, the “Down Payment Match” program includes additional purchase credits available for qualified customers. Buyers of International 4000 or 7000 Series trucks who select the Diamond LogicTM Exhaust Brake or Diamond Logic™ Engine Brake options recently introduced in the new, 2004 International® DT 466 diesel engine will earn an invoice credit of $300. Likewise, those customers selecting a Cummins ISM or ISX engine in International 5000i, 7000, 8000 or 9000i Series orders earn an invoice credit of $500.

Vehicles built with Cummins ISM or ISX engines also receive a three-year, 300,000-mile protection plan with a limited extended engine warranty at no extra charge.

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Transportation Secretary Vows No New Fuel Tax
Feb 9, 2004
 

WASHINGTON D.C. -- The fight this week over the transportation budget and the fuel tax has ratcheted up as Transportation Secretary Mineta vowed that President Bush would veto any legislation that included a higher fuel tax.

A Senate Committee tried to placate the administration by proposing to place $35 billion into the Highway Trust Fund through what one Senator called “illusory” accounting but others see as sound accounting and a way to pay for the bill instead of raising fuel taxes.

In a letter to House and Senate leadership, Mineta said that transportation infrastructure spending should not rely on an increase in gas or other federal taxes and that spending should be financed from the Highway Trust Fund.

Mineta’s letter was prompted by a Senate vote Monday that proposed spending $311 billion over six years compared to the Administration's proposed budget of $256 billion.

The Senate’s move may have showed a softening by some Republicans to a fuel tax increase with which both parties can agree, but Mineta’s stern warning has put a damper on this change of heart.

House democrats have pushed the idea of a fuel tax increase, but Bush and most Republicans have resisted it.

On Monday, The Senate Finance Committee proposed adding $35 billion to the Trust Fund by cracking down on fuel tax fraud and creating a tax credit for the trust fund to offset an ethanol subsidy. Senator Judd Gregg (R-NH) called the bill “illusory” and said it would only add to the current deficit.

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City Makes Criminals Pay $500 to Release Impounded Cars
Feb 9, 2004
 

ILLINOIS -- In Hanover Park, two new laws took effect this month that hit drunken drivers and other offenders in the pocketbook.

One allows the police department to charge $500 to release a suspect's car. The law applies to anyone charged with a DUI and to drivers with suspended or revoked licenses.

The other law allows the fire department to charge convicted offenders for emergency services if they cause an accident. It also applies to people convicted of arson.

Kankakee and Waukegan, which have passed similar ordinances, have collected hundreds of thousands of dollars in extra revenue and claim to have seen a drop in the number of accidents.

Hanover Park officials expect to collect between $100,000 and $150,000 a year from the car impounds.

The fire department's prospective restitution fees can't be accurately estimated because the department doesn't track its DUI responses, Hanover Park Fire Chief Craig Haigh said. The department responds to a "fair" number of DUIs, so the department will likely use the new ordinance to recover costs, he said.

While the money is a benefit, Hanover Park officials say the ultimate goal is to reduce the number of DUIs in the village.

But some defense attorneys question the fairness, effectiveness and legality of the new car impoundment fees. The fees, they say, punish people before they are proven guilty.

Hanover Park officials say the village's home-rule authority and the state vehicle code give it the right to impose the fees.

As of this month, drivers must pay Hanover Park $500 before the towing company will release their impounded vehicles. Drivers who believe they are innocent can seek an administrative hearing with the village. They'll get a refund if it's determined the car was impounded unfairly.

The practice leaves a great deal of discretion to arresting officers to impose fees on someone who's suspected of a crime but not yet convicted, said Steve Fagan, an attorney in Des Plaines who defends drunken drivers.

The village has a vested interest in keeping the fines, so it's like "a fox guarding the hen house," Fagan said. "It's an excessive amount of money for somebody who's arrested for a crime but not proven guilty."

The other Hanover Park ordinance requires a conviction before firefighters can collect costs incurred when they respond to drunken drivers.

In this, Hanover Park joins a number of suburban fire departments that request restitution from drunken drivers, said Charles Smith, a municipal attorney who represents 10 local suburbs, including Libertyville and Mundelein.

State law caps the restitution fees at $1,000. Most collections are lower, since drunken driving responses usually don't involve multiple-car accidents, he said.

Still, while the state law allows for fire department restitution, it's not as common as it could be, said Andy Sotiropoulos, an Oak Park attorney whose practice focuses solely on drunken driving defense.

Sotiropoulos has been in practice for five years, and in that time only one fire department ever requested recovery costs from a client at sentencing -- for less than $100.

He speculates it might be because most DUI arrests don't involve accidents and, therefore, don't incur large fees. Even when major crashes occur, departments may not have the time or resources to follow a conviction through the courts just to enforce its fees.

Evanston could collect money from convicted drunken drivers, but it never has, acting Fire Chief Alan Berkowsky said. Evanston has few serious drunken driving accidents, so not much money would be recouped, he said. As well, restitution from drunken driving requires a conviction, which delays payment and requires departmental resources to track it.

Berkowsky isn't convinced that demanding restitution from drunken drivers is much of a deterrent, anyway.

It is a deterrent in another way, however. The Evanston Fire Department has frequently used the same law to get money out of contractors who start fires by accident. The measure is designed to make people more careful, and Berkowsky said the number of contract fires has gone down about 50 percent since 1996.

Last year alone, Evanston collected $20,000 in restitution fees from fires, he said.

Kankakee and Waukegan have realized this benefit, also, particularly the revenue from car impound ordinances.

In 2002, roughly 1,000 vehicles were impounded in Kankakee. More than half were reclaimed for a $500 fee, bringing in $265,000.

That same year, Waukegan towed 6,830 vehicles. Fewer than 1,000 involved drunken drivers; the other offenses were driving without insurance, driving on a suspended or revoked license, or being charged with a crime involving narcotics and or prostitution. More than 3,800 people paid to retrieve their cars, amounting to more than $1.9 million.

Both towns have seen drops in the accident rates since adopting the laws just a few years ago, Hanover Park Police Chief Ron Moser said.

Since 2000, the accident rate in Kankakee has dropped 18 percent. In Waukegan, reported accidents dropped by 7 percent from the time the law was enacted in 2002 to a year later -- 2,858 crashes down to 2,657.

"The money is immaterial," Waukegan Mayor Richard Hyde said. "If it was $1 or $100 million, it wouldn't matter. We didn't do it for the money. We want to get them off the road."

Mothers Against Drunk Driving supports the financial penalties, said George Heroux, an attorney for MADD's Illinois chapter. Any law that makes people think twice about drinking and driving is good, he said.

He said there's no hard evidence that such laws prevent drunken driving. But anecdotally, anything helps, he said.

"It's a tough day for a drunk driver, and that's the way we want it to be," Heroux said.

For families like the Funks and for people like Marjorie Bossow, whose sister was killed by a drunken driver on July 31, the municipal fees and costs are a small price compared to what the victims paid.

Bossow believes whether or not the rules deter people from drinking and driving, it's the principle that matters.

"If they are responsible for this accident, they should pay for it," said Bossow, who lives in Villa Park.

"He chose to drink and drive and he hit somebody. He deserves to pay for what he did." (Sue Ter Maat - Chicago's Daily Herald)

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NJ Banning Cell Phone Use While Driving
Feb 2, 2004
 

NEW JERSEY -- New Jersey Gov. James McGreevey is expected to sign a bill that will make New Jersey the second state to ban handheld cell phone use while driving.

The bill specifies that law is only enforceable if a law enforcement officer stops a driver for another offense, such as a traffic violation, according to the state assembly’s website. Tickets are $100 to $250; the driver loses no points off his driver’s license for the offense.

The law allows drivers to use a handheld cell while driving in an emergency. It also permits police and other emergency workers to use handheld phones while on duty.

The assembly passed the ban 65-9 on Jan. 12, with nine members abstaining. In 2002, the Senate unanimously passed a ban as well.

New York passed a similar law in 2001 that fines first-time violators $100.

McGreevey has strongly supported the ban. In a Dec. 15 press release, the Democrat governor cites a 2002 Quinnipiac University poll indicating that 85 percent of state voters supported a handheld cell phone ban.

A year ago, U.S. Sen. Jon Corzine introduced a bill to ban cell phone use while driving. The New Jersey democrat’s bill was immediately referred to the Committee on Environment and Public Works, where it remains.

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Washington's Report-of-Sale System is Easy Target for Fraud
Feb 2, 2004
 

WASHINGTON -- Washington state's report-of-sale system was created to keep track of vehicles and owners when a vehicle is sold, but crooks are using it to shake their legal responsibility and cause trouble for others.

The state of Washington attaches a "sellers report of sale" form to every vehicle title they issue, so sellers can easily provide the state with the vehicle purchasers information at the time of sale. You can even file your report-of-sale online at the Department of Licensing's Website.

This report-of-sale form becomes prima facie proof that the vehicle was sold to the party listed on the form and that the previous owner is no longer responsible for the vehicle.

Herein lies the problem; anybody can go online and fill out the report-of-sale form and list whomever they like as the vehicles new, responsible party. The report-of-sale form has absolutely no safeguards against fraudulent information. The paper version of the form only requires the signature of the seller and if you fill out the form online, even that is not required.

Unfortunately, crooks allover the state have quickly learned how to use the report-of-sale system to shake their responsibility for impounded cars.

Washington's laws provide that a vehicles previous owner is released from any liability arising from the vehicle if the "sellers report of sale" is filed within five days from the date of purchase, and according to the falsified form it was.

But, the system is being abused in two ways.

First, vehicle sellers are not filing the report-of-sale until they are notified that the car they sold has been impounded and they are liable for the towing fees. While the law says the report-of-sale must be filed within five days of the date of purchase, the Department of Licensing will accept it at ANY time, even if it's the day after the vehicle was impounded. In fact, in at least one case, a Department of Licensing employee backdated the report so as to meet the 5 day deadline.

The second and most blatant abuse is when a vehicles owner files a report-of-sale form, which lists the impounding towing company as the new owner. In fact, absolutely anyone could be listed as the new owner and person responsible for the vehicle on the report-of-sale form because they are no safeguards in place to verify the integrity of this information.

Now that the report-of-sale system has gone online, a person armed with the license plate number of a vehicle and the name of the owner could file an online report of sale, which legally makes whomever they list responsible for the vehicle.

The added time, labor, and legal fees that towing companies must invest to work through these falsified report-of-sale documents is costing a lot of money and aggravation.

The Independent Towers of Washington is working with the Department of Licensing to change the system or get safeguards added that would prevent this type of abuse, but so far, the Department of Licensing has made no visible effort to remedy the problem.

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Towing Companies Say AAA is Not Paying Enough
Feb 2, 2004
 

WASHINGTON -- Towing companies in Washington have been going through a rough time lately with the WSP performing less impounds, insurance costs skyrocketing, and the price of diesel higher than ever.

But some towing companies who contract with AAA say they face yet another burden, that is the amazingly low price that they get paid for AAA motorclub tows.

AAA motorclub has approx 820,000 motorclub members in Washington State. Those members pay $52 to $120 a year to be serviced when they happen to break down on the highway, or find their battery dead on a wintry day.

What the average AAA member does not know is that of the AAA vendors we interviewed, AAA only pays $15-$21 for responding to these calls and towing them up to 10 miles.

Many towing companies in Washington have been trying to get a rate increase from AAA Motorclub for a long time with no success. Many of the tow operators we talked to said that AAA actually threatened to give their AAA service area to their competitor when they approached AAA about a small rate increase.

The tow companies admit that AAA tows by themselves are not profitable; therefore they are forced to perform these low paying calls in route to, or in route from, normal tow calls.

According to those same tow operators, AAA's other excuse for not giving tow operators a raise was the lack of money. So how much does AAA Washington make from it's motorclub members? We decided to find out.

According to AAA's newsletter, they have 820,000 members in Washington State, and according to local vendors, most of those members are AAA Plus ($84) members. In the interest of fairness we'll split that with the AAA Basic ($52) member and we'll say that AAA gets an average of $68 per member, per year.

Based on that, AAA is collecting $55,760,000 in motorclub fee revenue. This does not include revenue from the AAA Plus RV members, the highest price AAA membership, at all.

So, how much of that is paid to the vendors? You would think a lot, but that's not the case.

The company we profiled performs about 2400 AAA calls a year; AAA pays them about $76,800 to $96,000 (depending on whether they qualify for the bonus) for performing those calls. This works out to $32-$40 per call. That's $32-$40 whether they perform a jumpstart down the road, or deliver a pickup truck to an auto shop 100 miles away.

The tow companies say this is simply not enough and AAA knows it.

They say that AAA is taking advantage of towing companies who have not "run the numbers" and figured out the actual profit involved, by working the tow companies' fear of giving business to their competitor. 

Many companies say they have "run the numbers" and have figured out that it would actually be to their benefit to let a competitor take the contract instead of "bleeding money" like they are now.

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