WA’S accident towing industry is one of the worst in Australia, according to a confidential insurance company briefing paper.

The internal document describes the industry as dysfunctional, operating well outside acceptable business practices and reveals drivers involved in accidents are charged astronomical fees by operators.

It cited the example of a tow driver climbing into the back of an ambulance where paramedics were treating a woman and pressuring her to sign an authority to tow her vehicle. He left only after being ejected by paramedics a second time.

A damning price comparison in the document shows motorists in WA are being gouged $3888 versus $1555 in NSW for the same job.

A group of insurance companies have put some unprofessional WA towies on notice that they will no longer pay unreasonable costs and that means clients could be stuck fighting ridiculous towing charges.

“It is important to point out, that not every towing business operates in this manner. However, it is fair to say the industry operates well outside acceptable business practices and when challenged, they become aggressive and belligerent,” the briefing paper says.

Senior WA paramedics and police have confirmed aggressive “towies” obstruct them at accident scenes touting for tows and putting other road users at risk.

They race to get to crashes first, running red lights, speeding along freeway emergency lanes and cutting across median strips. Fights, abuse and sledging between operators at accidents are common, according to emergency services sources.

The briefing paper says towies take advantage of stressed car owners. Some mislead them into believing they are the contracted towers, often telling them the insurer will meet the full cost of towing in a bid to secure the job.

“The car owner will readily agree to have their car towed from the accident scene to a place of storage,” the briefing paper states.

“The storage facility is often owned by the tow company which then demands unreasonable fees. If the fees are questioned, the tow operators seize the vehicle and impose additional storage fees that accumulate until a settlement is reached, normally under duress.”

Unlike most other states, the industry in WA has no governing authority, no industry code of conduct and operators don’t need to be licensed. In addition, its official regulations – under the Road Traffic (Tow Truck) Regulations 1975 – are more than 40 years old.

The Department of Transport two years ago established a “tow industry technical advisory committee” with representatives from government, enforcement agencies and industry to improve operator safety.

The committee is reviewing the technical specification regulations for tow trucks, but drivers’ conduct and consumer protection is outside its scope.

The Motor Trade Association WA, which has a representative on the committee, has a code of ethics. Tow truck operators fall under the MTA’s equivalent body in some other states, but not in WA.

MTAWA chief executive Stephen Moir said WA was unusual in this respect but neither police nor insurers had indicated the need for MTA representation.

In addition, he said the unscrupulous tactics of some operators weren’t representative of the broader industry.

“Is there a need for representation? Probably not at this stage, we haven’t been approached,” he said.

Insurers say they’ve been managing these towies up until now.

But they say legislation is needed to create regulations to protect consumers, as occurs in Queensland, NSW, Victoria and South Australia.

They want an end to unauthorised charges such as “yard opening fees”, a stop to operators paying spotters fees, ranging from $50 to $200, to people who notify them of crashes. The practice is illegal in other states.

And they want an end to incentives from smash repairers.

They also recommend that tow drivers pass a “fit and proper persons” test to work in the industry.

The briefing paper contains an sample invoice from a Perth towing firm to an insurance company charging $1500 for a single business-hour tow that insurers said would be worth $251 in NSW and $207 in Victoria.

It also contains copies of two accounts issued by a towing operator for the same job; one for the insurance company for $2043 and the other to the car owner for $1230.

When the car owner questioned the two bills, the tow operator said they had one rate for when insurers are paying and another for when the owner pays.

Historically, tow operators have worked to an unwritten rule that the first truck to arrive at an accident hooks up the car.

That has changed as more government and non-government agencies, including insurers, enter into contracts with towing companies to ensure a fair price and quality of service. But it means the independents – those without contracts – have to fight more fiercely for tow jobs.

AAAC Towing is the biggest towing company in the state. It has contracts for the RAC accident service (not breakdown), Main Roads, IAG and the WA Police Service.

AAAC operations manager Adrian Di Lallo agrees “cowboys” exist but things had improved enormously. He said 90 per cent of AAAC’s drivers were contractors.

“It’d be very easy to go and buy as many trucks as we need and put drivers in them but that would then displace a lot of contractors who are really skilled in what they do,” Mr Di Lallo said.

He said there was a huge disparity in pricing and problems stemmed from the industry being unlicensed.

“With no licence needed you can go and buy a truck off Gumtree, print some business cards and you’re done,” Mr Di Lallo said.

Camera Icon Team work: Lightning Towing manager Bud De Boer and his father, business owner Jeff, in Myaree with their Chevrolet tow trucks. Credit: News Limited, Matthew Poon

First in, best dressed was code

TOWIE Jeff De Boer operates on the age-old towies’ belief that the first-to-the-job should get the wreck.

But the Lightning Towing boss has accused Main Roads, WA Police and insurers of creating an illegal towing monopoly in Perth by signing contracts with tow operators.

As an independent, Mr De Boer, who runs the business with his son, Bud, said he “wouldn’t get out of bed” for what other companies are paid.

He argued it was illegal under the Competition and Consumer Act for services to buyers to be limited.

“It is against the law, it is restriction of trade, it is marketing advantage and a few other bits and pieces,” he told The Sunday Times.

But SGIO spokesman Mark Gold said there were no state or federal laws prohibiting insurers having commercial relationships with towers.

Nevertheless, Mr De Boer invoices insurers $550 each time he misses a tow because an insurance company-preferred contractor gets the job and he says RAC WA has paid them.

He’s been asked by lawyers for the RAC to remove the words “Contractor to RAC towing” on his trucks. But he refuses, claiming “RAC” is an abbreviation of his 2012 registered business name, Repossession and Collision.

Mr De Boer agrees the industry is dysfunctional.

“One guy charges $450 to go 10km on a transfer – the prices need to be justified,” he said. “There are so many rorts out there; we went from $550 to $600 but haven’t had a price increase in two years to try and work in with insurance companies.

“But then they turn around and say, ‘You are too dear’, because you have these people with contracts going in and doing the job much cheaper for $350.”

In a submission to Transport Minister Dean Nalder, Mr De Boer called for tow operators to be accredited.

He also wants an increase in the $100 fine for operators guilty of intimidating car owners and capping fees to prevent “unscrupulous operators in the industry charging exorbitant fees”. He has yet to receive a response from Mr Nalder