Senate committee concurs with HB 223 to require insurers to cover reasonable towing and recovery costs

The Montana Senate Transportation Committee voted to concur with House Bill 223, an act requiring motor vehicle insurance policies to cover reasonable costs for towing, recovery and services for commercial tow truck operators, subject to the limits in the insurance policy.

A staff summary described the bill as “an act requiring motor vehicle insurance policies to cover reasonable costs for towing, recovery, and services for commercial tow truck operators subject to the limits in the policy.” Committee members discussed concerns raised during earlier hearings and noted that an amendment adopted in the House—limiting recovery to the policy's limits—addressed those concerns.

Committee members and senators who spoke offered support. One senator reiterated a proponent's estimate that some Montana tow companies “sometimes pick up as high as 40% of the wreckage that they don't get paid for.” Another senator described frequent interstate accidents in his area and said tow companies often are left unpaid when out-of-state vehicles are involved. After discussion, the committee voted to concur in the bill. The record includes a recorded no vote by Senator Hunter; other ayes were recorded by proxy for several members, and staff announced the bill as concurred in.

The committee's action means the Transportation Committee agreed with the House-passed version and will forward that concurrence in the legislative process. The bill's text as presented includes the limitation that recovery is available “up to the limits of the policy,” language sponsors said was intended to address initial concerns from insurers and other stakeholders.