Mississauga hikes some collision towing fees from $400 to $750

Mississauga has nearly doubled the fees that tow truck drivers can charge customers in certain circumstances.

A recent decision by City council changed the fee structure for scenarios in which a vehicle needs to be towed to a Collision Reporting Centre. The amount the motorist can be charged has jumped from $400 to $750.

According to the City, the new fee structure includes the following:

• $400 when the collision tow is to a single location.
• $750 When the collision tow involves a tow to a Collision Reporting Center and then on to a second location.  (When Collision Reporting Centers are closed this may involve removal of the vehicle to a Vehicle Pound Facility, overnight storage and a tow on a subsequent day to the Collision reporting Center.)

This rate does not apply to all tows in the City of Mississauga.  Prices for a broken down vehicle or other types of towing are not regulated by the bylaw and may vary between tow companies.

However, the Insurance Bureau of Canada (IBC) has expressed a “serious concern” about the move by Mississauga councillors, saying the change is an 87.5 per cent increase and came with very little warning.

The IBC said the move was done quietly with no debate and little documentation supporting the move. It has asked the City of Mississauga to reverse the decision until the effects of the increase can be studied and justified in an open forum.

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Compared to collision towing rates that can be charged in other large municipalities in Ontario, Mississauga is now the highest when compared to Brampton at $400, Toronto $280, London $275 and Ottawa $300.

The IBC said Mississauga made the move with scant documentation supporting the increase and comes at a time when inflation is already putting pressure on consumers.

“Council’s decision to nearly double the fee was not in the public interest,” a statement by the IBC reads.

The IBC believes Mississauga’s decision to increase tow fees reinforces the need for provincial oversight and a clear and transparent process to regulate tow fees that are fair to consumers.

“This unprecedented increase comes at a time when the provincial government is taking bold action to bring more oversight to the towing industry, which has faced increasing scrutiny over the past few years for well-documented incidents of violence and fraud in the GTA,” the IBC said in a statement.

A statement by Mississauga said the increase helps address the rise in fuel costs and other economic factors affecting the tow industry.