23/10/2024
Crash victims targeted by insurance imposters
• Warning for motorists about third-party companies intercepting insurance claims
• Victims told their vehicles are unsafe and need towing, even for minor damage
• Vehicles held to ransom until payment is made
Motorists involved in traffic accidents are being warned to watch out for rogue operators
posing as their insurance companies who may misrepresent the need for towing
services and then hold their cars hostage until substantial fees are paid.
So far this year, Consumer Protection has been alerted to 11 cases where consumers,
following vehicle crashes, report being misled by online results when searching for their
insurance company’s contact details. The top internet search results do not necessarily
identify the legitimate insurers, with details of businesses offering “accident
management” services sometimes listed first. Instead of connecting with their legitimate
insurers, the consumers ended up speaking with “accident management” businesses
who falsely claimed to be their insurance providers or affiliated with them.
After lodging accident details and sending photos of the damage, victims were told their
vehicles were unsafe to drive and needed to be towed away for assessment.
One victim, whose car was towed despite only receiving several scratches, became
suspicious when she was asked to inform her insurance company that the vehicle was
unroadworthy, along with instructions to nominate a specific panel be**er as the
preferred repairer. The victim rang her insurance company, which had no record of the
claim, and she was sent a towing invoice for $6,694.60 which is yet to be paid.
Another victim whose damaged car was also safe to drive received a $4,500 towing bill,
which was eventually paid for by her insurer so the car would be released.
Commissioner for Consumer Protection Trish Blake was concerned these third-party
companies were misleading consumers at a vulnerable time in their lives.
“After a car accident, victims are often in emotional or physical distress, which can cloud
their judgment and make them more susceptible to deceptive tactics,” Ms Blake said.
“To tell crash victims their vehicles are unsafe and need towing, when that’s clearly not
the case for minor panel damage, is misleading and could contravene the Australian
Consumer Law.
“Our problem isn’t with genuine and reputable accident management companies. It’s
with these particular operators who are posing as insurance companies and making
false representations to consumers about needing services.
“The best thing consumers can do to make sure their claim isn’t intercepted is to only
contact their insurance companies using legitimate phone numbers found on their
official website or on previous official correspondence, such as a statement or policy
renewal form.
“Better yet, keep the number of your insurer on your phone and in your vehicle so you
have it at your fingertips following an accident.”
New legislation to create a safe, fair and efficient crash towing industry for drivers and
reputable towing companies is currently before State Parliament. One reform involves
establishing maximum charges for the towing and storage of light vehicles involved in a
crash in the Perth and Peel regions, with the ability to expand to other regions or forms
of towing if required.
Consumers who believe they have been misled by businesses purporting to be their
insurer are encouraged to lodge a complaint on the Consumer Protection website.
Enquiries can be made by calling 1300 30 40 54 or emailing
[email protected]
