Rising Costs Push Towing Rates Higher Across the Country

Towing companies in Texas and Michigan are raising rates as operators struggle to keep pace with sharply higher insurance, fuel and other operating costs.

In Texas City, commissioners recently approved new maximum rates for city- and police-directed towing, nearly doubling some fees that had remained unchanged for more than 15 years. The new maximums are $272 for light-duty tows, $380 for medium-duty and $489 per unit for heavy-duty, capped at $978 for a single tow.

The rates bring Texas City in line with maximum fees established by the Texas Department of Licensing and Regulation. Local operators said the increases are needed to offset rising costs rather than significantly increase profits.

In Saginaw, Michigan, meanwhile, Mike’s Wrecker is raising rates for the second time this year as diesel prices soar. Owner Bill Giorgis said diesel jumped 36% in one week, from about $5 to as much as $6.80 per gallon. The company burns 10,000 to 11,000 gallons monthly, adding nearly $20,000 to its monthly fuel expense.

Mike’s Wrecker raised base and mileage rates in May and added fuel surcharges of $8 for light-duty and $20 for heavy-duty tows. Those surcharges are expected to increase again.

The developments reflect a broader pressure on towing operators to adjust rates as the cost of doing business continues to climb.

Source: https://www.galvnews.com/news and https://www.wnem.com