Committee asks auditor/insurance commissioner for clarification after tow-truck operators describe unpaid recoveries

Tow-truck industry representatives told the committee they face recurring issues recovering costs related to crash cleanups, infrastructure damage and law-enforcement-directed tows. Scott Wolf, president of the Montana Tow Truck Association (MTTA), said the association represents about 117 member companies (of roughly 300 registered towers statewide) and that unpaid law-enforcement tows can impose substantial cost burdens on small operators.

Wolf and other witnesses told the committee that in his business roughly 42% of law-enforcement-related tow revenue is not reimbursed, creating a financial strain that is passed to other customers or the towing firm.

Committee members asked staff to seek an agency-level clarification from the State Auditor/Insurance Commissioner about what kinds of crash- and damage-related costs insurers are required to pay and how tow operators should document and present claims for infrastructure damage. Committee staff proposed drafting a letter on committee letterhead requesting the agencys interpretation and participation at a future meeting; Senator Logie moved and the committee approved that action.

Committee staff will prepare the letter and arrange follow-up testimony from the auditor/insurance commissioner or agency staff. The request aims to reduce confusion about coverage for tows and related infrastructure-repair claims before the committee considers statutory changes affecting tow operators and billing practices.