I have a client who operates a reputable tow truck business.
New regulations came into effect last year which impose some new obligations on tow truck drivers.
One new requirement is to quote a maximum fee for towing and salvage and a maximum fee for storage.
Towed cars are usually taken to a holding yard and then to a repairer. The insurance company usually nominates when the car goes from the hold yard, and dictates how long it might be there. It is hard to estimate those costs in advance.
I had one case where a car was in the holding yard for years. It was only worth $50.00 and the RAC wanted a test case to go to court. We won. The legal costs awarded close to $50,000.00, for storage fees of less than $1,500.00!
Anyway, I have suggested putting in ridiculously high maxima, but explaining on the back of the form exactly how the fees will be calculated, in order to meet the new requirements.
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