Non-consent towing cost study in Utah.

Anderson, Douglas I.; Eixenberger, David · 2015 · ROSA P / Utah. Dept. of Transportation

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Summary

This study, conducted by Anderson Transportation Consulting and the Eixenberger Group for the Utah Department of Transportation (UDOT), evaluates the maximum allowable rates for "Non-Consent Towing" in Utah. Non-consent towing includes police-generated tows (accidents, impounds) and private property impounds, excluding consent-based services. The research was motivated by the need to ensure vehicle owners are charged fair and reasonable fees, as some existing rates had not been updated for years. The study’s objectives were to evaluate current maximum pricing levels, recommend indexes for future cost adjustments, and identify other factors influencing towing costs. The methodology involved a comprehensive cost analysis using data from statewide surveys, interviews with towing companies and agencies, and literature reviews. Researchers calculated baseline expenses for light, medium, and heavy-duty towing across three business models: full-time towing, mixed-business towing, and part-time towing. The analysis accounted for management, administrative, licensing, labor, profit, taxes, loss costs, advertising, and equipment expenses. Additionally, the study gathered qualitative data on industry efficiency, uniformity issues, and regulatory enforcement. The findings indicate that estimated costs for all fee categories—tow fees, administrative fees, and storage yard fees—are below the current maximum allowable rates for all vehicle classes and business models. For instance, the estimated tow fee expenses ranged from $130.26 to $139.51 per hour, well under the $145–$300 maximums. Consequently, the study recommends against increasing current rates. Instead, it proposes using specific Bureau of Labor Statistics indexes to adjust fees for inflation: Light Truck Driver Salary, Tow Truck Index, and Overhead Items for tow fees; Office Clerk Salary and Office Space Index for administrative fees; and Commercial Property Values for storage fees. The study also found that 57% of towing companies report adequate profits under current rates, with many opposing increases due to concerns about market saturation. The significance of this research lies in its recommendations for regulatory reform and cost reduction. The authors argue that implementing uniform rules and objective criteria for selecting towing companies on rotation lists could reduce industry costs. They suggest a two-tier approach using objective standards for acceptance (e.g., equipment capabilities, past performance) and performance evaluation (e.g., response time, safety compliance). The study concludes that non-consent towing is crucial for roadway safety and congestion management, and that consistent, objective regulations facilitated by third-party mediators would improve industry efficiency and reduce conflicts between towing companies and law enforcement.

Key finding

Estimated operating costs for towing companies were lower than current maximum allowable rates for tow, administrative, and storage fees across all business models and vehicle classes.

Methodology

mixed_methods

Provenance

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