American Family Insurance is suing five Chicago-area towing companies – three of which are also body shops – for alleged consumer fraud, claiming that the companies arrived at crash scenes without being called and charged excessive rates for towing services.
The Southtown Star reported that the insurer is suing Jay Kay Collision, Four Sons Towing and Storage, America’s Auto Body, Technicraft Collision Repair and City Wide Towing.
American Family claims that since 2005, the companies defrauded customers and the insurer by arriving at accident scenes without being called to tow vehicles away. Truck drivers allegedly told vehicle owners that the insurance company would cover 100 percent of the cost. After towing vehicles, the companies allegedly asked for excessive towing and storage fees and refused to release vehicles without full payment, the lawsuit alleges.
American Family says the companies’ practices likely cost the insurer customers, resulting in higher premiums for other policyholders.
The insurer is asking for three times the amount of each false claim, attorney costs and additional compensation.
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